Problem 3

Crown Co. keeps all its cash in a checking account. An examination of the companys accounting records and bank statement for the month ended June 30, 2020 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 the banks night depository on June 30 does not appear on the bank statement.
• The bank statement shows on June 30 that the bank collected note for Crown Co. and credited the proceeds of P950,000 to the companys account.
• Checks outstanding on June 30 amount to P300,000.
• Crown discovered that a check written in June for P200,000 in payment for an account payable, had been recorded in the Companys records as P20,000.
• Included in the June bank statement was NSF check for P250,000 that Crown has received from a customer on June 26.
• The bank statement shows a P20,000 service charge for June.

How much is the correct cash in bank balance to be shown in the statement of financial position on June 30, 2020?

Group of answer choices

P8,500,000

P9,000,000

P9,020,000

P9,150,000