Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PROVIDE SOLUTIONS Crown Co. keeps all its cash in a checking account. An examination of the companys accounting records and bank statement for the month

PROVIDE SOLUTIONS 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

image text in transcribed

2. Using the same information in Problem 3, how much is the unadjusted cash balance per bank?

Problem 3 Crown Co. keeps all its cash in a checking account. An examination of the company's 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 bank's 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 company's 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 Company's 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? P8,500,000 P9,020,000 P9,150,000 P9,000,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction Auditing Planning Implementation Use

Authors: Peter Wotschke, Gregor Kindermann

1st Edition

3658388404, 978-3658388409

More Books

Students also viewed these Accounting questions

Question

Define hedonic consumption and provide an example.

Answered: 1 week ago

Question

Design a modulo-8 counter using SR flip flop.

Answered: 1 week ago