How much is the correct cash balanceon December 31, 2020? *Mr. Matee Nik, the accountant of Tikoy Inc. prepared the following bankreconciliation for November 2020:Balance per ledgerBank service chargesP2,372,000(2,000)Adjusted balanceP2,370,000Balance per bank statementP2,100,000Deposit in transit300,000Outstanding checksAdjusted balance(30,000)P2,370,000Information gathered for December 2020 are as follows:BankBookChecks recorded2,300,0002,360,000Deposits recordedCollection by bank (P400,000 noteplus interest)NSF check returned with Dec. 311,620,0001,800,000420,000bank statement10,000Service charge2,000Balances1,828,0001,810,000

The bank reconciliation statement is prepared to adjust the cash balance and bank balance to match…

Answered: How much is the correct cash balance on…

Business

Accounting

How much is the correct cash balance on December 31, 2020?

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: Year 1 2 3 4 Cash Flow $800 1,010 1,280 1,180

A: Present value is the equivalent value based on the time value of money of the future cash flow that…

Q: Year Cash Flow 0 –$ 17,200 1 9,500 2 8,400 3 4,900 a. What is the profitability…

A: profitability index = Present value of cashflow / initial investment

Q: What is the NPV of the following cash flows if the required rate of return is 0.09? Year 0…

A: Required rate of return = 0.09 Year Cash flow 0 -6816 1 3577 2 3505 3 2732 4 3757

Q: This Information will be used for all questions: Selected Balance Sheet Information Year 2020…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: please determine the rate of return of the cash flows shown in the table below. Year…

A: Internal rate of return is the modern method of capital budgeting that is used to determine the rate…

Q: Year Cash Flow 17600 9,900 8,800 5,300 a. What is the profitabllity index for the set of cash flows…

A: Profitability index: It is the ratio of present value of cash inflows to present value of cash…

Q: Given the following cash flows in table below, determine the rate of return to the nearest second…

A: Step 1 IRR differs in that it takes into account numerous periodic cash flows, reflecting the fact…

Q: Can you please confirm my calculations: discount rate is 6%; end of year cash flows are as follows:…

A: Given information: Initial Investment = $20,000 Yearly Cash Flows = $5000 Time = 5 years Discount…

Q: Which figure of merit provides an interest rate at which the present value of the future cash flows…

A: IRR It is a rate at which the amount of investment equals to PV of the future CF. It is a…

Q: What is the estimated worth today of an amount of cash to be received (or paid) in the future…

A: When the amount to be paid or received in future is discounted to find its worth today, this is…

Q: The time value of money takes all of the following into consideration EXCEPT a.Inflation b.the…

A: Time value of money The time value of money is a core principle of finance that states due to its…

Q: went from $0.00887619 to $0.00906626. • By how much did the yen appreciate against the dollar? • By…

A: In the market the exchange rate of one currency with the other keeps changing that depending on the…

Question

How much is the correct cash balance
on December 31, 2020? *
Mr. Matee Nik, the accountant of Tikoy Inc. prepared the following bank
reconciliation for November 2020:
Balance per ledger
Bank service charges
P2,372,000
(2,000)
Adjusted balance
P2,370,000
Balance per bank statement
P2,100,000
Deposit in transit
300,000
Outstanding checks
Adjusted balance
(30,000)
P2,370,000
Information gathered for December 2020 are as follows:
Bank
Book
Checks recorded
2,300,000
2,360,000
Deposits recorded
Collection by bank (P400,000 note
plus interest)
NSF check returned with Dec. 31
1,620,000
1,800,000
420,000
bank statement
10,000
Service charge
2,000
Balances
1,828,000
1,810,000

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

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

Epto Ergo's bank statement from Crypto Bank at July 31, 2020, gives the following information. $18,400 Balance, July 1 August deposits Checks cleared in July Bank debit memorandum: $ Safety deposit box fee Service charge Balance, July 31 71,000 25 68,678 50 Bank credit memorandum: 20,692 Interest earned 45 A summary of the Cash account in the ledger for July shows the following: balance, July 1, $18,700; receipts $74,000; disbursements $73,570; and balance, July 31, $19,130. Analysis reveals that the only reconciling items on the June 30 bank reconciliation were a deposit in transit for $4,800 and outstanding checks of $4,500. In addition, you determine that there was an error involving a company check drawn in July: A check for $400 to a creditor on account that cleared the bank in July was journalized and posted for $4. Instructions a) Determine deposits in transit. b) Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) c) Prepare a bank…
The cash account of Sheffield Co. showed a ledger balance of $7,088.13 on June 30, 2020. The bank statement as of that date showed a balance of $7,470. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. 3. 4. 5. 6. 7. (a) There were bank service charges for June of $45. A bank memo stated that Bao Dai's note for $2,160 and interest of $64.80 had been collected on June 29, and the bank had made a charge of $9.90 on the collection. (No entry had been made on Sheffield's books when Bao Dai's note was sent to the bank for collection.) Receipts for June 30 for $6,102 were not deposited until July 2. Checks outstanding on June 30 totaled $3,844.89. The bank had charged the Sheffield Co.'s account for a customer's uncollectible check amounting to $455.76 on June 29. A customer's check for $162 (as payment on the customer's Accounts Receivable) had been entered as $108 in the cash receipts journal by Sheffield on June 15. Check no. 742 in the amount…
ASSESSMENT Prepare a bank reconciliation statement for Juan Company for the month of April 2020, using the following information: • The bank statement for Juan Company shows a balance per bank of P15,907.45 on April 30,2020. On this date the balance of cash per books is P11,589.45 • Additional information are provided below: o Deposits in transit: April 30 deposits (received by the bank on May 1) P2,201.40 o Outstanding checks: No.453 – P3,000.00 No.457 - P1,401.30 No.460 – P1,502.70 Errors: Juan wrote check no.443 for P1,226.00 and the bank correctly paid the amount. However, he recorded the check as P1,262.00. Bank me da: Debit - NSF check from Pedro P425.60 Debit - Charge for printing company checks P30.00 Credit – Collection of notes receivable for P1,000.00 plus interest earned of P50.00, less bank collection fee of P15.00
16. What is the adjusted cash balance on November 30, 2020?17. What is the adjusted cash balance on December 31, 2020?
What is the adjusted CASH IN BANK on December 31, 2020? Love Company reported the following data in relation to cash on Dec. 31, 2020: * Checkbook balance, P4,000,000 * Undeposited collections, P400,000 * A customer check amounting to P200,000 dated January 2, 2021 was included in the December 31, 2020 checkbook balance. * Another customer check for P500,000 included in the checkbook balance but returned by the bank for insufficiency of posited on December 22, 2020 was fund. This check was redeposited on December 26, 2020 and cleared two days later. * A P400,000 check payable to supplier dated and recorded on December 30, 2020 was mailed on January 16, 2021. * A petty cash fund of P50,000 comprised the following on December 31 2020: 5,000 5,000 40,000 50,000 * A check of P40,000 was drawn on December 31, 2020 payable to the petty cash Coins and currencies Refundable deposit for returnable containers Petty cash vouchers Total
In connection with your examination, the Caliao Company presented to you the following information regarding its Cash in Bank account for the month of December 2020: A. Balances per bank statements: November 30, P215,600 and December, P230,400. B. Balances of cash in bank account in company's books: November 30, P165,450 and December 31, P226,800. C. Total receipts per book were P2,221,900 of which P12,100 was paid in cash to a creditor on December 24. D. Total charges in the bank statement during December were P2,189,700. E. Undeposited receipts were: November 30, P90 600 and December 31, P101,200. F. Outstanding checks were: November 30, P26,750 and December 31, P19,300, of which a check for P5,000 was certified by the bank on December 26. G. NSF checks returned, recorded as reduction of cash receipts were: Returned by bank on December and recorded also in December P10,400. Returned by bank on December but recorded also in January P8,600. H. Collections by bank not recorded by…
In connection with your examination, the Caliao Company presented to you the following information regarding its Cash in Bank account for the month of December 2020: A. Balances per bank statements: November 30, P215,600 and December, P230,400. B. Balances of cash in bank account in company’s books: November 30, P165,450 and December 31, P226,800. C. Total receipts per book were P2,221,900 of which P12,100 was paid in cash to a creditor on December 24. D. Total charges in the bank statement during December were P2,189,700. E. Undeposited receipts were: November 30, P90 600 and December 31, P101,200. F. Outstanding checks were: November 30, P26,750 and December 31, P19,300, of which a check for P5,000 was certified by the bank on December 26. G. NSF checks returned, recorded as reduction of cash receipts were:  Returned by bank on December and recorded also in December P10,400.  Returned by bank on December but recorded also in January P8,600. H. Collections by bank not recorded by…
What is the bank statement balance at June 30, 2023?a. P70,564.40b. P78,314.60c. P83,109.60d.. P87,904.60
General Accounting
The bank columns in the cash book for month of June 2020 and Maybank's bank statement for that month for James Enterprise are as follows: Cash Book Date Particulars Amount Date Particulars Amount (RM) (RM) 2020 2020 1,410 | June 5 62 June 12 75 June 16 224 June 29 582 June 30 June 1 Balance b/d L Holmes 180 J May June 16 T wWilson J Rebus T Silver June 7 519 41 June 28 F Slack Blister Disco 22 June 30 G Baker Balance c/d 1,591 2.353 2.353 Maybank Bank Statement as at 30 June 2020 Date Particulars Withdrawals Deposits Balance (RM) (RM) (RM) June 1 Balance b/d 1,410 Cheque F Lane June 7 62 1,472 June 8 180 1,292 Cheque J Rebus T Silver June 16 75 1,367 June 17 519 848 June 18 41 807 Cheque SLM Standing Order June 30 Flynn: Trader's Credit Bank Charges June 28 224 1,031 June 29 52 979 64 1,043 June 30 43 1,000 | You are required to: (a) Draw up a Bank Reconciliation Statement as at 30 June 2020.
What is the cash balance per books at November 30, 2021?
Epto Ergo’s bank statement from Crypto Bank at July 31, 2020, gives thefollowing information.Balance, July 1 $18,400 Bank debit memorandum:August deposits 71,000 Safety deposit box fee $ 25Checks cleared in July 68,678 Service charge 50Bank credit memorandum: Balance, July 31 20,692Interest earned 45A summary of the Cash account in the ledger for July shows the following:balance, July 1, $18,700; receipts $74,000; disbursements $73,570;and balance, July 31, $19,130.Analysis reveals that the only reconciling items on the June 30 bank reconciliation were adeposit in transit for $4,800 and outstanding checks of $4,500. In addition, you determine thatthere was an error involving a company check drawn in July: A check for $400 to a creditor onaccount that cleared the bank in July was journalized and posted for $40.Instructionsa) Determine deposits in transit.b) Determine outstanding checks. (Hint: You need to correct disbursements for thecheck error.)c) Prepare a bank reconciliation at July…