Answered: In preparing the bank reconciliation at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In preparing the bank reconciliation at December 31, 2021, Naive Company had made available the following information:

Balance per bank statement - P380,750

Deposits in transit - P67,500

Outstanding checks - P52,000

Bank service charge for December - P750

Checks drawn, dated and recorded December 31, 2021, but not mailed until January 10, 2022 (included in the total outstanding checks given) - P9,000

Checks of Navy Company erroneously charged by bank to the account of Naive Company - P12,000

What is the amount shown as Cash on Naive Company's December 31, 2021 statement of financial position?

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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