10 The cash balance of AA Company had the following information: Descriptions November December Cash balances per book P1,200,000 P1,450,000 Cash balances per bank 1,400,000 1,838,500 Bank service charges 12,000 11,500 NSF checks 100,000 150,000 Notes collected by the bank 350,000 410,000 Deposit in transit 320,000 ? Outstanding checks ? 185,000 Book debit error 25,000 – Book credit error 50,000 70,000 Bank credit error – 65,000 Bank debit error 75,000 90,000 Bank receipts 2,550,000 Book disbursements 1,920,000 Note: errors were corrected in the following period. No other errors affecting the cash balances. Statement 1: The adjusted receipts for the month of December is P2,180,000. Statement 2: The adjusted disbursement for the month of December is P1,874,500. Group of answer choices Both statements are false Only statement 2 is true Only statement 1 is true Both statements are true
10
The cash balance of AA Company had the following information:
|
Descriptions |
November |
December |
|
Cash balances per book |
P1,200,000 |
P1,450,000 |
|
Cash balances per bank |
1,400,000 |
1,838,500 |
|
Bank service charges |
12,000 |
11,500 |
|
NSF checks |
100,000 |
150,000 |
|
Notes collected by the bank |
350,000 |
410,000 |
|
Deposit in transit |
320,000 |
? |
|
Outstanding checks |
? |
185,000 |
|
Book debit error |
25,000 |
– |
|
Book credit error |
50,000 |
70,000 |
|
Bank credit error |
– |
65,000 |
|
Bank debit error |
75,000 |
90,000 |
|
Bank receipts |
2,550,000 |
|
|
Book disbursements |
1,920,000 |
|
|
Note: errors were corrected in the following period. No other errors affecting the cash balances. |
Statement 1: The adjusted receipts for the month of December is P2,180,000.
Statement 2: The adjusted disbursement for the month of December is P1,874,500.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
D Company purchased an equipment at P6,500,000 on January 1, 2020 which will be used for a total of 10 years, no salvage value. Jollibee accounted for this equipment using the revaluation model. The value in use of the assets during the three revaluation dates were P5,556,000, P4,413,000 and P4,240,000 on December 31, 2020; 2021; and 2022. While the fair values are P5,500,000, P4,620,000; and P4,770,000; respectively for
2020, 2021 and 2022 with cost to sell of P100,000; P120,000; and P110,000, respectively.
How much is the income (expense) recognized in 2020?
by Bartleby Expert
