AA Corporation shows a cash balance of P1,570,000 as of December 31, 2022. The following cash transactions were included in this cash balance: A check from a customer for P111,000 was received on December 28, 2022 as payment of accounts due to AA . The check is dated January 3, 2023. A check dated September 15, 2022 was held by the cashier amounting to P230,000. The check was not deposited in the bank as of December 31, 2022 because it was misplaced by the cashier. A customers check for P180,000 was deposited on December 28 but returned by bank on December 30 marked NSF. A check drawn by AA as payment of accounts due to supplier amounting to P325,000. The was still held by the custodian as of December 31, 2022 and was released to supplier on January 4, 2023.   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
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AA Corporation shows a cash balance of P1,570,000 as of December 31, 2022. The following cash transactions were included in this cash balance:

  1. A check from a customer for P111,000 was received on December 28, 2022 as payment of accounts due to AA . The check is dated January 3, 2023.
  2. A check dated September 15, 2022 was held by the cashier amounting to P230,000. The check was not deposited in the bank as of December 31, 2022 because it was misplaced by the cashier.
  3. A customers check for P180,000 was deposited on December 28 but returned by bank on December 30 marked NSF.
  4. A check drawn by AA as payment of accounts due to supplier amounting to P325,000. The was still held by the custodian as of December 31, 2022 and was released to supplier on January 4, 2023.

 

What is the correct cash balance as of December 31, 2022?

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