7. Margar Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of December revealed a bank statement balance P8,470,000 and a book balance of P8,525,000. A deposit of P950,000 placed in the bank's night depository on December 29 does not appear on the bank statement. Checks outstanding on December 31 amount to P270,000. The bank statement showed that on December 25 the bank collected a note for Margar Company and credited the proceeds of P935,000 to the entity's account which included P35,000 interest. 16 | P age SAINT COLUMBAN COLLEGE Corner V. Cerilles - Sagun Streets, San Francisco District, Pagadian City Tel Nos: 2151799/ 2151800 | Fax No: 2141290 | Website: www.sccpag.edu.ph | E-mail: sccpc1957@gmail.com Margar Company discovered that check written for December for P183,000 in payment of an account had been recorded as P138,000. Included with the December 31 bank statement was NSF check for P250,000 that Margar Company had received from a customer on December 20. The bank statement showed a P15,000 service charge for December. What is the adjusted cash in bank on December 31? a. 9,150,000 b. 9,240,000 c. 9,195,000 d. 9,215,000

7. Margar Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of December revealed a bank statement balance P8,470,000 and a book balance of P8,525,000. A deposit of P950,000 placed in the bank's night depository on December 29 does not appear on the bank statement. Checks outstanding on December 31 amount to P270,000. The bank statement showed that on December 25 the bank collected a note for Margar Company and credited the proceeds of P935,000 to the entity's account which included P35,000 interest. 16 | P age SAINT COLUMBAN COLLEGE Corner V. Cerilles - Sagun Streets, San Francisco District, Pagadian City Tel Nos: 2151799/ 2151800 | Fax No: 2141290 | Website: www.sccpag.edu.ph | E-mail: sccpc1957@gmail.com Margar Company discovered that check written for December for P183,000 in payment of an account had been recorded as P138,000. Included with the December 31 bank statement was NSF check for P250,000 that Margar Company had received from a customer on December 20. The bank statement showed a P15,000 service charge for December. What is the adjusted cash in bank on December 31? a. 9,150,000 b. 9,240,000 c. 9,195,000 d. 9,215,000

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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