Sumcilla Company's data regarding the cash in bank for the year 2021 are as follows:

Jan. 31Feb. 28

01 Cash per ledger200,000270,000

02 Cash receipts for February150,000

03 Bank statement balance206,600276,950

04 Total credits per bank statement in February159,000

05 Credit memo for note collected9,00013,000

06 Bank service charge100150

07 Deposit in transit10,00011,000

08 Outstanding checks4,2001,800

09 Erroneous bank credit6,0004,000

10 Erroneous bank charge3,2001,400

11 Check of the company issued in January was mutilated and returned by the payee. A replacement check was issued. Both checks were entered in the Check register but no entry was made to cancel the mutilated check P700,

12 The company issued a stop payment order to the bank in February for check issued in February which was not received by the payee, A new check was written and recorded in the Check register in February. The old check was written off by a journal entry also in February, P1,200.

Questions

Based on the above data, compute for the following:

1.The unadjusted bank disbursements in February

P78,850

P88,650

P80,000

P79,900

2.The adjusted cash in bank balance on January 31

P209,600

P209,000

P216,600

P209,100

3.The adjusted bank receipts in February

P154,000

P149,000

P152,800

P141,000

4.The adjusted bank disbursements in February

P78,850

P79,900

P88,650

P80,000

5.The adjusted cash in bank balance on February 28

P287,950

P283,550

P283,000

P282,850

On July 1, 2015, Ed Wynne signed an agreement to operate as a franchisee of Kwik Foods, Inc., for an initial franchise fee of P240,000. Of this amount, P80,000 was paid when the agreement was signed and the balance is payable in four equal annual payments of P40,000 beginning July 1, 2016. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. Wynne's credit rating indicates that he can borrow money at 14% for a loan of this type.

Wynne should record the acquisition cost of the franchise on July 1, 2015 at

a.

174,400

b.

240,000

c.

196,400

d.

270,400