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Bud Gineery's cash in bank balance per book amounted to P100,000 after drawing an undelivered check payment of P25,000. The bank statement subsequently received reveals a credit memo of P20,000 for note collection, and a bank service charge of P100, but a P5,000 check from customer is marked NSF. As of the same day, Bud collected accounts receivable amounting to P15,000. This amount was not included in the cash in bank balance per book because it was not yet deposited. How much is the correct amount of cash balance? a. P100,000 b. P125,000 c. P140,000 d. P155,000

Bud Gineery's cash in bank balance per book amounted to P100,000 after drawing an undelivered check payment of P25,000. The bank statement subsequently received reveals a credit memo of P20,000 for note collection, and a bank service charge of P100, but a P5,000 check from customer is marked NSF. As of the same day, Bud collected accounts receivable amounting to P15,000. This amount was not included in the cash in bank balance per book because it was not yet deposited. How much is the correct amount of cash balance? a. P100,000 b. P125,000 c. P140,000 d. P155,000

FINANCIAL ACCOUNTING
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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Bud Gineery's cash in bank balance per book amounted to P100,000 after drawing an undelivered check payment of P25,000. The bank statement subsequently received reveals a credit memo of P20,000 for note collection, and a bank service charge of P100, but a P5,000 check from customer is marked NSF. As of the same day, Bud collected accounts receivable amounting to P15,000. This amount was not included in the cash in bank balance per book because it was not yet deposited. How much is the correct amount of cash balance? a. P100,000 b. P125,000 c. P140,000 d. P155,000
Transcribed Image Text:Bud Gineery's cash in bank balance per book amounted to P100,000 after drawing an undelivered check payment of P25,000. The bank statement subsequently received reveals a credit memo of P20,000 for note collection, and a bank service charge of P100, but a P5,000 check from customer is marked NSF. As of the same day, Bud collected accounts receivable amounting to P15,000. This amount was not included in the cash in bank balance per book because it was not yet deposited. How much is the correct amount of cash balance? a. P100,000 b. P125,000 c. P140,000 d. P155,000
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