PROOF OF CASH Lovable Company prepared the following bank reconciliationon June 30:Balance per bank statement, June 30Deposit in transit3,000,000400,000TotalOutstanding checksBalance per book, June 303,400,000( 900,000)2,500,000The bank statement for the month of July showed thefollowing:Deposits, including P200,000 note collected for LovableDisbursements, including P140,000 NSF check andP10,000 service charge9,000,0007,000,000All reconciling items on June 30 cleared through the bank inJuly.The outstanding checks totaled P600,000 and the deposit intransit amounted to P1,000,000 on July 31.1. What is the adjusted cash in bank on July 31?a. 5,000,000b. 5,200,000c. 5,550,000d. 5,400,0002. What is the cash balance per book on July 31?a. 5,400,000b. 5,350,000c. 5,550,000d. 4,500,0003. What is the amount of cash receipts per book in July?a. 9,400,000b. 9,600,000C. 8,600,000d. 9,800,0004. What is the amount of cash disbursements per book in July?a. 6,550,000b. 6,700,000C. 7,300,000d. 6,850,000

Adjusted cash balance can be defined as the amount of money that one should have in their bank…

1. What is the adjusted cash in bank on July 31? a. 5,000,000 b. 5,200,000 c. 5,550,000 d. 5,400,000 2. What is the cash balance per book on July 31? a. 5,400,000 b. 5,350,000 c. 5,550,000 d. 4,500,000

1. What is the adjusted cash in bank on July 31? a. 5,000,000 b. 5,200,000 c. 5,550,000 d. 5,400,000 2. What is the cash balance per book on July 31? a. 5,400,000 b. 5,350,000 c. 5,550,000 d. 4,500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

PROOF OF CASH

Lovable Company prepared the following bank reconciliation
on June 30:
Balance per bank statement, June 30
Deposit in transit
3,000,000
400,000
Total
Outstanding checks
Balance per book, June 30
3,400,000
( 900,000)
2,500,000
The bank statement for the month of July showed the
following:
Deposits, including P200,000 note collected for Lovable
Disbursements, including P140,000 NSF check and
P10,000 service charge
9,000,000
7,000,000
All reconciling items on June 30 cleared through the bank in
July.
The outstanding checks totaled P600,000 and the deposit in
transit amounted to P1,000,000 on July 31.
1. What is the adjusted cash in bank on July 31?
a. 5,000,000
b. 5,200,000
c. 5,550,000
d. 5,400,000
2. What is the cash balance per book on July 31?
a. 5,400,000
b. 5,350,000
c. 5,550,000
d. 4,500,000
3. What is the amount of cash receipts per book in July?
a. 9,400,000
b. 9,600,000
C. 8,600,000
d. 9,800,000
4. What is the amount of cash disbursements per book in July?
a. 6,550,000
b. 6,700,000
C. 7,300,000
d. 6,850,000

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