PROBLEM 5 The books of Coach Company disclosed a cash balance of P691, 720 on June 30. The bank statement as of June 30 showed a balance of P556,800. Additional information that might be useful in reconciling the two balances follows: Check no. 128 for P13,000 was erroneously recorded in the check register as P30,000. A customer's note dated March 31 was discounted on April 12. The note was dishonored on June 29 (maturity date). The bank charged Coach's account for P142,650, which includes a protest fee of P420. The deposit of June 24 was recorded on the books as P28,950 but it was actually a deposit of P29,850. Outstanding checks totaled P98,850 as of June 30. There were bank service charges for June of P2,100 not yet recorded on the books. Coach's account had been charged on June 26 for a customer's NSF check for P12,960. Coach properly deposited P6,000 on June 30 that was not recorded by the bank. Receipts of June 30 for P134,250 were recorded by the bank on July 2. A bank memo stated that a customer's note for P45,000 and interest of P1,650 had been collected on June 27 and the bank charged a P360 collection fee. Questions: 10. How much is the correct cash balance at June 30? a. P564,200 b. P591,720 c. P598,200 d. P596,400 11. How much is the net adjustment to the cash account? a. P41,400 credit C. P93,520 credit b. P41,400 debit d. P93,520 debit