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You were able to obtain the fallowing information from your client, YZ Corporation and the bank statements for November 30 and December 31, 2018. As

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You were able to obtain the fallowing information from your client, YZ Corporation and the bank statements for November 30 and December 31, 2018. As the auditor, you were also able to directly secure the stater #hts of January 12, 2012 and acquired the necessary confirmation. 11/30/18 12/31/18 Balance, bank statement 344,420 275,020 Balance, company records 271,260 226,010 Deposits in transit 53,000 Outstanding checks 88,420 ? ? 12/1-31/18 1/1-12/19 Receipts, cash records 963,230 292,500 Credits, bank statement 941,010 321,490 Disbursements, cash record 480 177,570 Charges, bank statement 410 230,180 The fallowing information also was obtained: a) Check No.804 for P340 cleared by the bank in December as P1,340.This was found in proving the bank statement. The bank made the correction on January 8, 2019. b) A note of P 20,000, sent to the bank for collection on November 15, 2018, was collected and credited to the account on November 28, 2018, net of a collection fee of P80. The note was recorded in the cash receipts on December 21, 2018, at which date the collection fee was entered as a disbursement. c) The client records returned checks in red in the cash receipts journal. The checks listed in the table were returned by the bank. Amount Returned Recorded Redeposited Company A P3,270 12/5/18 No entry 12/8/18 Company 3 6,730 12/27/18 1/3/19 1/15/19 d) Two payroll checks for employee's vacations totaling P5y500 were drawn on January 3, 2012 and cleared the bank on January 8, 2019. These checks were not entered in the clients records because semi-monthly payroll summaries are entered only on the 15th and the last day of each month. Requirements: Compute for the deposits in transit as of December 31, 2018. Compute for the outstanding checks as of December 31, 2018. Prepare a compound adjusting journal entry to reflect the correct/adjusted cash in bank balance as of December 31, 2018

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