When a company's bookkeeper started to prepare the monthly bank reconciliation, the cash account showed a balance of P528,600. At the end of the month, the following information was available from the company records and the monthly bank statement: (1) Customer NSF checks listed on the bank statement - 40,800 (2) Bank service charges listed on the bank statement - 2,400 (3) Checks outstanding at the end of the month, determined by the bookkeeper - 178,000 (4) A deposit for P45,000 was recorded incorrectly on the bank statement as - 54,000 (5) The company wrote a check for P1,700 (the correct amount) but recorded it in the cash account as - 7,100 (6) Customer defaults on accounts receivable were determined by the bookkeeper to be - 12,600 The correct cash balance shown on the bank reconciliation should be
When a company's bookkeeper started to prepare the monthly bank reconciliation, the cash account showed a balance of P528,600. At the end of the month, the following information was available from the company records and the monthly bank statement: (1) Customer NSF checks listed on the bank statement - 40,800 (2) Bank service charges listed on the bank statement - 2,400 (3) Checks outstanding at the end of the month, determined by the bookkeeper - 178,000 (4) A deposit for P45,000 was recorded incorrectly on the bank statement as - 54,000 (5) The company wrote a check for P1,700 (the correct amount) but recorded it in the cash account as - 7,100 (6) Customer defaults on accounts receivable were determined by the bookkeeper to be - 12,600 The correct cash balance shown on the bank reconciliation should be
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
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When a company's bookkeeper started to prepare the monthly bank reconciliation, the cash account showed a balance of P528,600. At the end of the month, the following information was available from the company records and the monthly bank statement:
(1) Customer NSF checks listed on the bank statement - 40,800
(2) Bank service charges listed on the bank statement - 2,400
(3) Checks outstanding at the end of the month, determined by the bookkeeper - 178,000
(4) A deposit for P45,000 was recorded incorrectly on the bank statement as - 54,000
(5) The company wrote a check for P1,700 (the correct amount) but recorded it in the cash account as - 7,100
(6) Customer defaults on accounts receivable were determined by the bookkeeper to be - 12,600
The correct cash balance shown on the bank reconciliation should be:
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