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ABC Company's newly hired assistant prepared the following bank reconciliation on December 31, 2021: Book balance P2,810,000 Add: Deposits-in-transit 1,500,000 300,000 Interest on note Check for payment of CBA Company's supplier debited to our account Less: Bank service charge Adjusted book balance 2,200,000 4,000,000 90,000 P6,720,000 Bank balance P6,860,000 Add: Error on check no. 99 9,000 Collection of note 5,000,000 5,009,000 Less: Preauthorized payments for water bills NSF check from a customer 248,000 440,000 3,219,000 Outstanding checks Adjusted bank balance 3,907,000 P7,962,000 Check No. 99 was made for the proper amount P489,000 in payment of account. However, it was entered in the cash payments journal as P498,000. ABC Company authorized the bank to automatically pay its water bill as submitted directly to the bank. What is the correct cash in bank balance as of December 31,2021?

ABC Company's newly hired assistant prepared the following bank reconciliation on December 31, 2021: Book balance P2,810,000 Add: Deposits-in-transit 1,500,000 300,000 Interest on note Check for payment of CBA Company's supplier debited to our account Less: Bank service charge Adjusted book balance 2,200,000 4,000,000 90,000 P6,720,000 Bank balance P6,860,000 Add: Error on check no. 99 9,000 Collection of note 5,000,000 5,009,000 Less: Preauthorized payments for water bills NSF check from a customer 248,000 440,000 3,219,000 Outstanding checks Adjusted bank balance 3,907,000 P7,962,000 Check No. 99 was made for the proper amount P489,000 in payment of account. However, it was entered in the cash payments journal as P498,000. ABC Company authorized the bank to automatically pay its water bill as submitted directly to the bank. What is the correct cash in bank balance as of December 31,2021?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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38) ABC Company's newly hired assistant prepared the following bank reconciliation on December 31, 2021: Book balance P2,810,000 Add: Deposits-in-transit 1,500,000 300,000 Interest on note Check for payment of CBA Company's supplier debited to our account Less: Bank service charge Adjusted book balance 2,200,000 4,000,000 90,000 P6,720,000 Bank balance P6,860,000 Add: Error on check no. 99 9,000 Collection of note 5,000,000 5,009,000 Less: Preauthorized payments for water bills 248,000 440,000 NSF check from a customer Outstanding checks Adjusted bank balance 3,219,000 3,907,000 P7,962,000 Check No. 99 was made for the proper amount P489,000 in payment of account. However, it was entered in the cash payments journal as P498,000. ABC Company authorized the bank to automatically pay its water bill as submitted directly to the bank. What is the correct cash in bank balance as of December 31,2021?
Transcribed Image Text:38) ABC Company's newly hired assistant prepared the following bank reconciliation on December 31, 2021: Book balance P2,810,000 Add: Deposits-in-transit 1,500,000 300,000 Interest on note Check for payment of CBA Company's supplier debited to our account Less: Bank service charge Adjusted book balance 2,200,000 4,000,000 90,000 P6,720,000 Bank balance P6,860,000 Add: Error on check no. 99 9,000 Collection of note 5,000,000 5,009,000 Less: Preauthorized payments for water bills 248,000 440,000 NSF check from a customer Outstanding checks Adjusted bank balance 3,219,000 3,907,000 P7,962,000 Check No. 99 was made for the proper amount P489,000 in payment of account. However, it was entered in the cash payments journal as P498,000. ABC Company authorized the bank to automatically pay its water bill as submitted directly to the bank. What is the correct cash in bank balance as of December 31,2021?
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