13 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 amount of deposit in transit as of December 31, 2022 is P90,000. Statement 2: The amount of outstanding checks as of November 30, 2022 is P272,000. Group of answer choices Both statements are false Both statements are true Only statement 1 is true Only statement 2 is true
13 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 amount of deposit in transit as of December 31, 2022 is P90,000. Statement 2: The amount of outstanding checks as of November 30, 2022 is P272,000. Group of answer choices Both statements are false Both statements are true Only statement 1 is true Only statement 2 is true
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
13
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 amount of deposit in transit as of December 31, 2022 is P90,000.
Statement 2: The amount of outstanding checks as of November 30, 2022 is P272,000.
Group of answer choices
Both statements are false
Both statements are true
Only statement 1 is true
Only statement 2 is true
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