intermediate accounting volume 1:

28.

Sapphire Company provided the following information

for the month of December:

Balance per bank statement December 31

2,800,000

Bank service charge for December

12,000

Interest paid by bank to Sapphire Company for December

10,000

Deposits made but not yet recorded by the bank

350,000

Checks written but not yet recorded by the bank

650,000

The entity discovered that it had drawn and erroneously recorded a check for P46,000 that should have

been recorded for P64,000.

What is the

cash balance per ledger

on December 31? (please provide solution)

a.

P2,500,000

b.

P2,520,000

c.

P2,540,000

d.

P2,800,000

29. Adversary 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 is

P8,500,000.

* A deposit of P1,000,000 that was placed in thebank's night depository on June 30 does not appearon the bank statement.

* The bank statement shows on June 30, the bank collected note for Adversary Company and credited the proceeds of P950,000 to the entity's account.

* Checks outstanding on June 30 amount to P300,000.

* Adversary Company discovered that a check written in June for 200,000 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 that Adversary Company had received from a customer on June 26.

* The bank statement shows a P20,000 service charge for June.

(cash in bank as of june 30 is 9,000,000)

what is the net adjsutment to cash in bank on june 30? (please provide solution)

a. net debit 950 000

b. net credit 450 000

c. net debit 500 000

d. net debit 860 000