Question
You obtained the following information on the current account of Karen Company during your examination of its financial statements for the year ended December 31,
You obtained the following information on the current account of Karen Company during your examination of its financial statements for the year ended December 31, 2018.
The bank statement on November 30, 2018 showed a balance of P306,000.
Among the bank credits in November was a customers note for P100,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to P1,200 and a P40,000 check which was charged by the bank in error against Karen Co. account. Also in November you ascertained that there were deposits in transit amounting to P80,000 and outstanding checks totaling P170,000.
The bank statement for the month of December showed total credits of P416,000
and total charges of P 204,000.
The company's books for December showed total debits of P735,600, total credits of P407,200 and a balance of P485,600.
Bank debit memos for December were: No. 121 for service charges, P1,600 and No. 122 on a customers returned check marked Refer to Drawer for P24,000.
December 31, 2018 the company placed with the bank a customers promissory note with a face value of P120,000 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, 2019. A check for P3,960 was recorded in the company cash payments books in December as P39,600.
- How much is the undeposited collections as of December 31, 2018?
- How much is the outstanding checks as of December 1, 2018?
- How much is the adjusted cash balance as of November 30, 2018?
- How much is the adjusted bank receipts for December?
- How much is the adjusted book disbursements for December?
- How much is the adjusted cash balance as of December 31, 2018?
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