Correct amount of cash in bank to be presented in the balance sheet Client 5: Extreme CompanyThe following ledger account is a copy of the bank account in the ledger of Extreme Company.METROBANK100,00030,00040,00050,00060,000DecCheck No.BalanceDeposit12 Deposit24 Deposit31 DepositDec771 20,000772115,000773 35,000774 15,000775 30,000776 25,000777 40,0004610141824The following bank statement was received from METROBANK by Extreme Company:DateChecksBalanceCheck No.DepositsBalanceDec.130,0001146.121224282876877177277377410,00020,0005,00035,00015,00052,0008,00010,0005,00030,00040,000776104250,00045,000 CMNSF CheckService chargeAdditional information:a. The Extreme Company reconciled its bank balance on November 30 with two checks, No. 768 for P10,000and 770 for P20,000 outstanding.b. Check No. 1042 was drawn by Extreme Garage. The bank charged it in error to the account of ExtremeCompany.c. Check No. 776 was correctly drawn for P52,000 in payment of account. The amount P25,000 was enteredin the books of original entry.d. The credit on December 28 represents the proceeds of a P50,000 note, less a collection fee of P5,000collected by the bank and credited to the account.e. The NSF check was received from a customer in payment of account.9. Correct amount of cash in bank to be presented in the balance sheet.

The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Answered: Client 5: Extreme Company The following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Correct amount of cash in bank to be presented in the balance sheet

Client 5: Extreme Company
The following ledger account is a copy of the bank account in the ledger of Extreme Company.
METROBANK
100,000
30,000
40,000
50,000
60,000
Dec
Check No.
Balance
Deposit
12 Deposit
24 Deposit
31 Deposit
Dec
771 20,000
772
1
1
5,000
773 35,000
774 15,000
775 30,000
776 25,000
777 40,000
4
6
10
14
18
24
The following bank statement was received from METROBANK by Extreme Company:
Date
Checks
Balance
Check No.
Deposits
Balance
Dec.
130,000
1
1
4
6.
12
12
24
28
28
768
771
772
773
774
10,000
20,000
5,000
35,000
15,000
52,000
8,000
10,000
5,000
30,000
40,000
776
1042
50,000
45,000 CM
NSF Check
Service charge
Additional information:
a. The Extreme Company reconciled its bank balance on November 30 with two checks, No. 768 for P10,000
and 770 for P20,000 outstanding.
b. Check No. 1042 was drawn by Extreme Garage. The bank charged it in error to the account of Extreme
Company.
c. Check No. 776 was correctly drawn for P52,000 in payment of account. The amount P25,000 was entered
in the books of original entry.
d. The credit on December 28 represents the proceeds of a P50,000 note, less a collection fee of P5,000
collected by the bank and credited to the account.
e. The NSF check was received from a customer in payment of account.
9. Correct amount of cash in bank to be presented in the balance sheet.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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