Compute for: 33. The cash in bank balance per books on Dec. 31, 2013. 34. The adjusted cash in bank balance on Dec. 31, 2013. 35. The amount to be reported as cash and cash equivalents on its Dec.
The bank statement for the current account of sir George James Corp. showed a Dec. 31, 2013, balance of P585,284. Information that might be useful in preparing a bank reconciliation is as follows:
a) Outstanding checks were P52,810.
b) The Dec. 31, 2013, cash receipts of P23,000 were not deposited in the bank until Jan. 4, 2014.
c) One check written in payment of rent P8,940 was correctly recorded by the bank but was recorded by sir George as a P9,840 disbursement.
d) In accordance with prior authorization, the bank withdrew P18,000 directly from the current account as payment on a mortgage note payable. The interest portion of that payment was P14,000. Sir George has made no entry to record the automatic payment.
e) Bank service charges of P740 were listed on the bank statement.
f) A deposit of P35,000 was recorded by the bank on Dec. 13, but it did not belong to sir George James.
g) The bank statement included a charge of P3,400 for an NSF check. The
company will seek payment from the customer.
h) Sir George maintains an P8,000 petty cash fund that was appropriately
reimbursed at the end of December.
i) According to instructions from sir George on Dec. 29, the bank withdrew
P400,000 from the account and purchased treasury bills for sir George. The
company recorded the transaction in its books on Dec. 31 when it received
notice from the bank. Half of the treasury bills mature in three months and the other half in four months.
Compute for:
33. The cash in bank balance per books on Dec. 31, 2013.
34. The adjusted cash in bank balance on Dec. 31, 2013.
35. The amount to be reported as cash and cash equivalents on its Dec.
31, 2013
This is the answer to the solution manual:
33. P541,514
34. P520,474
35.P728,474
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