What is the correct cash balance? Fabulous Company provided the following data concerningcash on July 31:Checks drawnBank statementNo. 101.2,700,000600,000700,000300,000400,000.450,000600,000650,000Balance, July 31Charges:(Zhecks paidService chargeNo. 102No. 103No. 104No. 1054,000,00020,000Credits:No. 106.No. 107DepositsNote collected3,500,0001,500,000No. 108500,000Balance of cash per book on July 1, P1,270,000. Cash receiptsper cash book for the month of July P3,400,000.Checks paid by bank include all checks issued during themonth of July except No. 107 and No. 108. On July 31 cashreceived but not deposited in bank, P400,000.

The bank reconciliation statement (BRS) is prepared to reconcile the balance of the passbook and the…

Fabulous Company provided the following data concerning cash on July 31: Checks drawn Bank statement No. 101. 2,700,000 Balance, July 31 Charges: Zhecks paid Service charge 600,000 700,000 No. 102 No. 103 4,000,000 20,000 300,000 No. 104 400,000 450,000 600,000 650,000 500,000 No. 105 Credits: Deposits Note collected 3,500,000 1,500,000 No. 106. No. 107 No. 108 Balance of cash per book on July 1, P1,270,000. Cash receipts per cash book for the month of July P3,400,000. Checks paid by bank include all checks issued during the month of July except No. 107 and No. 108. On July 31 cash received but not deposited in bank, P400,000.

Fabulous Company provided the following data concerning cash on July 31: Checks drawn Bank statement No. 101. 2,700,000 Balance, July 31 Charges: Zhecks paid Service charge 600,000 700,000 No. 102 No. 103 4,000,000 20,000 300,000 No. 104 400,000 450,000 600,000 650,000 500,000 No. 105 Credits: Deposits Note collected 3,500,000 1,500,000 No. 106. No. 107 No. 108 Balance of cash per book on July 1, P1,270,000. Cash receipts per cash book for the month of July P3,400,000. Checks paid by bank include all checks issued during the month of July except No. 107 and No. 108. On July 31 cash received but not deposited in bank, P400,000.

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: The production manager of Rordan Corporation has submitted the following quarterly production…

A: Direct labor budget provides details of budgeted labor hours to be consumed and budgeted direct…

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: Describe reconciliation with change in cash balance.

A: A cash flow statement is used to reconcile with change in cash balance. It shows the cash flow in…

Q: The total cash receipts have to be put in the final part?

A: The cash receipts means the amount of money received either through cash mode or bank.

Q: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: Explain the term cash equivalents with examples.

A: Cash equivalents: Assets which are highly liquid in terms of quick payment and near to due date are…

Q: How do I calculate cash provided by operations?

A: Cash provided by the operations = Cash flow from operations = EBIT x (1 - Tax rate, T) + Non cash…

Q: Define Restricted Cash.

A: Restricted cash refers to money that is held for a specific purpose and therefore not available to…

Q: how is liquidity determines in cash collection period

A: Liquidity refers to the ability of a company to meet its short-term obligations with cash or cash…

Q: What are the Examples of cash equivalents?

A: Cash & Cash equivalents: Cash is the money which is readily available in the form of currency.…

Q: Explain the differences between cash and accrual accounting.

A: Account: A record, that documents or records the change in assets, liabilities, or equity for a…

Q: Why could cash be falling in a set of accounts?

A: Cash can fall in a set of accounts for a variety of reasons. These include making large purchases,…

Q: separation of duties

A: Separation of duty is the internal conttro process by which the company avoids the fraud and…

Q: On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:…

A: Computation of current assetAcquisition date fair value (65200÷80%)$81500Less: Strands Book…

Q: Explain the possible restrictions on cash and their implications for classification in the balance…

A: Restricted Cash Restricted cash is define as the cash is not freely available for the company to…

Question

What is the correct cash balance?

Fabulous Company provided the following data concerning
cash on July 31:
Checks drawn
Bank statement
No. 101.
2,700,000
600,000
700,000
300,000
400,000.
450,000
600,000
650,000
Balance, July 31
Charges:
(Zhecks paid
Service charge
No. 102
No. 103
No. 104
No. 105
4,000,000
20,000
Credits:
No. 106.
No. 107
Deposits
Note collected
3,500,000
1,500,000
No. 108
500,000
Balance of cash per book on July 1, P1,270,000. Cash receipts
per cash book for the month of July P3,400,000.
Checks paid by bank include all checks issued during the
month of July except No. 107 and No. 108. On July 31 cash
received but not deposited in bank, P400,000.

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

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

If the time interval for compounding is different from the time interval for cash transactions what do we need to find?
Describe cash equivalents
What are cash equivalents? Provide two examples. Whyare these items often combined with cash for the purpose ofbalance sheet presentation?
What are the primary motives for holding cash?
Why is cash management important?
What are the differences between cash from operating activities, cash from investing activities, and cash from financing activities?
Describe about the Cash rebates obligation.
How can I find cash provided by operations?
The statements of financial position for W Limited are as follows: 31 December Non-current assets Land and buildings Cost/valuation Accumulated depreciation Plant and equipment Cost Accumulated depreciation Current assets Inventory Trade receivables Cash and cash equivalents Total Assets Equity and Liabilities Ordinary share capital ($1 shares) Share premium Revaluation reserve Retained earnings Non-current liabilities 12% debenture (2030) Current liabilities Trade payables Bank overdraft 2021 $000 4 1150 201 949 539 326 213 1162 117 135 252 1414 600 120 80 136 936 150 86 242 328 478 1414 2020 $000 650 160 490 454 274 180 670 89 103 37 229 899 400 70 109 579 200 120 120 320 899 Total liabilities Total equity and liabilities The following information is also available. 1 The cost of land and buildings at 31 December 2020 comprised of land $250000 and buildings $400 000. The land, which is not depreciated, had been revalued to $330 000 on 1 July 2021. 2 On 1 March 2021, a final dividend…