What is the correct cash balance at August 31, 2018a. P902,00b. P860,000c. P820,000d. 802,000 Below is the bank reconciliation for Prada Company for July 2018:Balance per bank, July 31, 2018Add: Deposits in transitTotalLess: Outstanding checksErroneous bank creditCash balance per books, July 31, 2018P140,00050,000PPP750,000120,000870,000190,000680,000The bank statement for August 2018 contains the following data: Total deposits, P550,000; Total charges (including a nosufficient fund check of P40,000 and service charge of P2,000), P480,000. All outstanding checks on July 31, 2018including bank credit were cleared in the bank in August 2018. There were outstanding checks of P150,000 and depositsin transit of P190,000 on August 31, 2018.

A bank reconciliation statement is essentially a financial statement that banks prepare…

Answered: cash balance

Business

Accounting

cash balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Dine-Corp International publishes ratings and reviews of the world's finest restaurants. Following…

A: 1. Balance per company records at end of the month $72,644.12 Less: Bank service…

Q: Cutler Company has a cash account with a balance of $350,000 with Wright Bank and a cash account…

A: International Financial Reporting Standards (IFRS): IFRS is a set of accounting standards which are…

Q: Select all that apply Which of the following statements regarding the statement of cash flows are…

A: Cash Flow Statement - It is the Statement which represents the inflow and outflow of cash and cash…

Q: Down Company Manufacturing has the following select financial data as of Dec 31. Cash $20,000 Cash…

A: Cash ratio is computed as = (Cash + cash equivalent) / Current liabilities

Q: Please record the following transactions: Jan 4 Established a petty cash fund in the amount of $80…

A: Petty Cash - Petty Cash is a fund maintained by the organization to make payments for petty…

Q: On a statement of cash flows prepared using the indirect method, an increase in accounts payable…

A: Introduction:- The following adjustments to be made preparation of cash flow from operating…

Q: Consider Chandler's incomplete deposit slip: How much cash did Chandler receive? A.$70.00 b. $106.00…

A: Here, Cash is 35.00 Check 1 is 67.45 Check 2 is 73.55 Total is 70

Q: enow.com/ilrm/takeAssignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLoca ris en les…

A: Solution... Net cash flow from operating activities = $180,269 Net cash used for investing…

Q: Using the following information: Accounts receivable Allowance for doubtful accounts Cash realizable…

A: The account receivables has the normal debit balance and allowance for doubtful accounts has the…

Q: Which of the following would NOT be considered a cash equivalent? OA. Foreign currency B. Money…

A: Step 1 Cash Equivalent Cash equivalents are assets-based short-term investment securities with a…

Q: What is the amount of cash to reconcile using the direct method on the Statement of Cash Flows?…

A: Solution: Amount of cash to reconcile using the direct method on the statement of cash flows =…

Q: Cash and accounts receivable for Adams Company are as follows: Prior Current Year Year Cash $41,208…

A: Dollar change in Cash = Current Year Cash - Prior Year Cash Dollar change in Accounts Receivable =…

Q: Which statement is not true? Oa. Disclosures related to receivables are reported on the financial…

A: Current and Non Current Assets - Current Assets are those assets that realized cash with in a period…

Q: E 7-7A (LO4) /Apr. 16: Cr. Cash Short and Over, CASH SHORT AND OVER ENTRIES Based on the following…

A: Journal Entries for Cash Receipt from Service Fee and Cash Short/ Excess

Q: TB MC Qu. 7-44 (Algo) Wilson Company had the following cash balance... Wilson Company had the…

A: CURRENT ASSETSCurrent assets are short-term assets that can be easily converted into cash.Current…

Q: Exercise 21-4 (Algo) Summary entries for cash received from customers [LO21-3] For each of the three…

A: Accounts receivable are the money that is owed by the customer or buyer from the business who has…

Q: Calculate the cash discount and the net amount due the transaction (in $). Amount of Invoice Terms…

A: The terms of sale 2/10, n/45 means, there will be a discount of 2%, if payment is made within 10…

Q: L S4-4 The Cash account of SWITZER Ltd. reported a balance of $2,500 at August 31, 2020. Included…

A: BANK RECONCILIATION STATEMENT It is a statement which is prepared to reconcile the balance as per…

Q: 2.3. Thor Company provided the following data on December 31, 2019: Checkbook balance: 4,000,000…

A: Cash includes Cash Balance, Bank Balance, Bills Which have Maturity Value less then 3 Months.

Q: Exercise 21-4 (Algo) Summary entries for cash received from customers [LO21-3] For each of the three…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: For the Feb3 transaction how did you get the amount of 6434 for the Cash credit?

A: Journal entries are those which are recorded for every transaction which takes place during the…

Q: The controller of the Red Wing Corporation is in the process of preparing the company's 2024…

A: Cash and cash equivalents includes the cash and other current assets which can be readily converted…

Q: M5-14 Reporting Cash and Cash Equivalents alon ellos flass od on 10 120056 318ilgub a essa que od…

A: CASH & CASH EQUIVALENTS Cash Means Currency Cash in hand & Demand Deposit With Bank.…

Q: Which of the following entries for goods sold by cash is correct? a) Cash Dr, AR Cr b) AR Dr,…

A: Goods or services provided by the business can be sold for cash or on account. Cash sales are sales…

Q: Notes 2022 2021ASSETS Cash on hand 1,404,561 2,529,876Statutory deposits with Central Banks…

A: The assessment of the company's working capital position and evaluation of its management strategies…

Q: The breakdown of the Cash and Cash Equivalents account of C Corporation as of December 31, 2021 is…

A: To arrive at the correct balance of cash on hand that should be presented as part of Cash and Cash…

Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

What is the correct cash balance at August 31, 2018
a. P902,00
b. P860,000
c. P820,000
d. 802,000

Below is the bank reconciliation for Prada Company for July 2018:
Balance per bank, July 31, 2018
Add: Deposits in transit
Total
Less: Outstanding checks
Erroneous bank credit
Cash balance per books, July 31, 2018
P
140,000
50,000
P
P
P
750,000
120,000
870,000
190,000
680,000
The bank statement for August 2018 contains the following data: Total deposits, P550,000; Total charges (including a no
sufficient fund check of P40,000 and service charge of P2,000), P480,000. All outstanding checks on July 31, 2018
including bank credit were cleared in the bank in August 2018. There were outstanding checks of P150,000 and deposits
in transit of P190,000 on August 31, 2018.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Explain Well with proper answer .
Do not give image format
Requlred Informetion [The following information applies to the questions displayed below.] The December bank statement and cash T-account for Stewart Company follow: BANK STATEMENT Checks Deposits Balance $ 48,000 40, 380 67,830 53,930 ৪9, 938 88,970 88,470 88,520 88,370 Date Other Dec. 1 $ 7,620 558 $28, 000 13,900 11 17 23 36, e00 26 960 30 NSF* $300 50 19, 200 19, e00 31 Interest earned 31 Service charge 150 NSF check from J. Left, a customer. Cash (A) Dec. 1 Balance 48, e00 Deposits Dec. 11 23 Checks written during December: 7,620 28, 800 36, ee0 19,e00 13,e00 550 30 13,900 960 31 150 19,200 4,500 Dec. 31 Balance 97,120 There were no deposits in transit or outstanding checks at November 30. Requlred: 1. Identify and list the deposits in transit at the end of December. (Select all that apply.) $28,000 $36,000 $19,000 $13,000 2. [dentify and list the outstanding checks at the end of December (Select all that apply.) $7,620 $550 $13,900 $880 $150 $19,200 $4,500 OOUI
A28
Calculate the cash discount and the net amount due the transaction (in $). (Round your answers to the nearest cent.) Amount ofInvoice Terms ofSale CashDiscount NetAmount Due $5,010.20 4/10, n/30 $ $
im.3
What are the cash balance and the total current assets balance?
H6. 31 P XYZ Co. decided to create a petty cash fund. They estimated that $100 would be needed in the fund. Choc entry to create the account from the following. O Petty Cash is debited for $100. O Cash is debited for $100. O Petty Cash is credited for $100. O Miscellaneous Expense is debited for $100.
Kingbird Import Company had credit sales of $1824000. The beginning accounts receivable balance was $188000 and the ending accounts receivable balance was $319000. Using the direct method of reporting cash flows from operating activities, what were the cash collections from customers during the period? $2069000. $1824000. $2012000. O $1693000. OO
2. DETAILS rise BRECMBC9 4.11.TB.011. On May 27, you received your bank statement showing a balance of $1,026.34. Your checkbook shows a balance of $1,056.29. Outstanding checks are $245.50 and $377.20. The account earned $62.59. Deposits in transit amount to $705.24, and there is a service charge of $10.00. Calculate the reconciled balance. O $29.95 O $943.80 O $1,003.70 $1,108.88
E47.
1401-42 Please make sure to use the account names from the attachement