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Your examination of the financial statements of MAGDALO Group Co. for the year ended December 31, 2007 you obtained the following information on the checking account of the company a. The bank statement on November 30, 2007 showed a balance of P15,300 b. Among the bank credits in November was a customer's note for P5.000 collected for the account of the company which the company recognized in December among its receipts. C. Included in the bank debits in November was a cost of checkbooks amounting to P60. d. A check for P2,000 issued by MAGULO Group Co. in November was charged by the bank in error against MAGDALO Group Co. account. e. You also ascertained that there were deposits in transit amounting to P4,000 and outstanding checks totaling P8,500 as of November 30, 2007. f. The bank statement for the month of December showed total credits of P20,800 and total charges of P10,200. g. Company books for December showed total receipts of P36,780 and disbursements of P20,360. h. Bank debit memos for December were: No. 418 for service charges, P80 and No. 504 on a customer's returned check marked "Refer to Drawer" for P1.200 i. On December 29, 2007 the company placed with the bank a customer's promissory note with a face value of P6.000 for collection. The company treated this note as part of its receipts although the bank was able to collect on the note only in January, 2007. j. A check for P198 was recorded in the company cash payments books in December as P1,980. 1. Adjusted cash balance as of December 31, 2007 a. P24,280 b. P36,880 c. P18,782 d. P16,940 e. other amount 2. Unadjusted book balance November 30, 2007. a. P12,800 b. P7,800 c. P12,860 d. P7,860 e other amount c. P21,300 d. P10,800 e other amount 3. Adjusted cash balance November 30, 2007 a. P8,800 b. P12,800 4. Deposit in transit as of December 31, 2007. a. P21,980 b. P10,980 5. Outstanding Checks as of December 31, 2007 a. P19,940 b. P16,818 c. P8,890 d. P16,980 e. other amount c. P19,880 d. P18,098 e other amount Suggested answers: 1c 2 d 3 b 4b 50 NEED SOLUTIONS TY