Adversary Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of June revealed the following information: The cash balance per book on June 30 is P8,500,000. • A deposit of P1,000,000 that was placed in the bank's night depository on June 30 does not appear on the bank statement. • The bank statement shows on June 30, the bank collected note for adversary Company and credited the proceeds of P950,000 to the entity's account. • Checks outstanding on June 30 amount to P300,000. Adversary Company discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity's records as P20,000. • Include with the June bank statement was NSF check for 250,000 that adversary Company had received from a customer on June 26. • The bank statement shows a P20,000 service charge for June. What is the net adjustment to cash in bank on June 30? A.Net debit P950,000 B.Net credit P450,000 O C.Net debit P500,000 D.Net debit P860,000 ООО

Adversary Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of June revealed the following information: The cash balance per book on June 30 is P8,500,000. • A deposit of P1,000,000 that was placed in the bank's night depository on June 30 does not appear on the bank statement. • The bank statement shows on June 30, the bank collected note for adversary Company and credited the proceeds of P950,000 to the entity's account. • Checks outstanding on June 30 amount to P300,000. Adversary Company discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity's records as P20,000. • Include with the June bank statement was NSF check for 250,000 that adversary Company had received from a customer on June 26. • The bank statement shows a P20,000 service charge for June. What is the net adjustment to cash in bank on June 30? A.Net debit P950,000 B.Net credit P450,000 O C.Net debit P500,000 D.Net debit P860,000 ООО

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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