AA Company maintained cash in bank at Lunar Bank. This account is used for disbursement to various suppliers and had P3,245,000 balance as of December 31, 2022. The selected items below are part of the recorded disbursements in 2022 which are not yet encash by the payee: Check payable to a supplier dated 3/31/2022, released 3/1/2022 P215,000 Check payable to a supplier dated 12/30/2022, released 195,000 1/2/2022 Check payable to a supplier dated 12/31/2022, released 320,000 11/15/2022 Check payable to a supplier dated 1/4/2023, released 100,000 12/28/2022 Check payable to a supplier dated 12/26/2022, released 185,000 12/30/2022 What is the correct cash balance as of December 31, 2022?

AA Company maintained cash in bank at Lunar Bank. This account is used for disbursement to various suppliers and had P3,245,000 balance as of December 31, 2022. The selected items below are part of the recorded disbursements in 2022 which are not yet encash by the payee: Check payable to a supplier dated 3/31/2022, released 3/1/2022 P215,000 Check payable to a supplier dated 12/30/2022, released 195,000 1/2/2022 Check payable to a supplier dated 12/31/2022, released 320,000 11/15/2022 Check payable to a supplier dated 1/4/2023, released 100,000 12/28/2022 Check payable to a supplier dated 12/26/2022, released 185,000 12/30/2022 What is the correct cash balance as of December 31, 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

AA Company maintained cash in bank at Lunar Bank. This account is used for
disbursement to various suppliers and had P3,245,000 balance as of December
31, 2022. The selected items below are part of the recorded disbursements in
2022 which are not yet encash by the payee:
Check payable to a supplier dated 3/31/2022, released 3/1/2022
P215,000
Check payable to a supplier dated 12/30/2022, released
195,000
1/2/2022
Check payable to a supplier dated 12/31/2022, released
320,000
11/15/2022
Check payable to a supplier dated 1/4/2023, released
100,000
12/28/2022
Check payable to a supplier dated 12/26/2022, released
185,000
12/30/2022
What is the correct cash balance as of December 31, 2022?

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