CASH and BR

Problem 14-5 (ACP) Love Company reported the following information in relation to cash on December 31, 2019: * Checkbook balance, P4,000,000. * Undeposited collections, P400,000. * A customer check amounting to P200,000 dated January 2, 2020 was included in the December 31, 2019 checkbook balance. * Another customer check for P500,000 deposited on December 22, 2019 was included in the checkbook balance but returned by the bank for insufficiency of fund. This check was redeposited on December 26, 2019 and cleared two days later. * A P400,000 check payable to supplier dated and recorded on December 30, 2019 was mailed on January 16, 2020. * A petty cash fund of P50,000 comprised the following on December 31, 2019: * A check of P40,000 was drawn on December 31, 2019 payable to Petty Cash. 1. What is the adjusted cash in bank on December 31,2019 ? a. 4,600,000 b. 4,200,000 c. 4,400,000 d. 3,700,000 2. What total amount should be reported as cash on December 31,2019 ? a. 4,645,000 b. 4,845,000 c. 4,600,000 d. 4,650,000 Problem 15-9 (PHILCPA Adapted) Boracay Company kept all cash in a checking account. An examination of the bank statement for the month of December revealed a bank statement balance of P8,470,000. A deposit of P950,000 placed in the bank's night depository on December 29 does not appear on the bank statement. Checks outstanding on December 31 amount to P270,000. The bank statement showed that on December 25 the bank collected a note for Boracay Company and credited the proceeds of P935,000 to the entity's account which included P35,000 interest. Boracay Company discovered that a check written in December for P183,000 in payment of an account had been recorded as P138,000. Included with the December 31 bank statement was an NSF check for P250,000 that Boracay Company had received from a customer on December 20. The bank statement showed a P15,000 service charge for December. 1. What is the adjusted cash in bank on December 31 ? a. 9,150,000 b. 9,240,000 c. 9,195,000 d. 9,215,000 2. What is the unadjusted balance per book on December 31 ? a. 8,480,000 b. 8,525,000 c. 8,435,000 d. 8,510,000 3. What is the net adjustment to cash in bank on December 31 ? a. Net debit 935,000 b. Net credit 310,000 c. Net debit 625,000 d. Net credit 625,000 Problem 15-8 (IAA) Aries Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of June revealed the following information: * The cash balance per book on June 30 was P8,500,000. * A deposit of P1,000,000 that was placed in the bank's night depository on June 30 did not appear on the bank statement. * The bank statement showed that on June 30 the bank collected note for the entity and credited the proceeds of P950,000 to the entity's account, net of collection charge P50,000. * Checks outstanding on June 30 amounted to P300,000 including certified check of P100,000. * The entity discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity's records as P20,000. * Included with the June bank statement was NSF check for P250,000 received from a customer on June 26 . * The bank statement showed a P20,000 service charge for June. 1. What amount should be reported as cash in bank on June 30 ? a. 9,000,000 b. 8,300,000 c. 9,360,000 d. 9,180,000 2. What is the balance per bank statement on June 30 ? a. 8,300,000 b. 9,700,000 c. 8,660,000 d. 8,200,000 3. What is the net adjustment to cash in bank on June 30 ? a. Net debit P950,000 b. Net credit P450,000 c. Net debit P500,000 d. Net debit P860,000