In the course of your audit of Pig Company's cash in bank for the year ended December 31, 2023, you ascertained the following information: Particulars Cash per bank statement Deposit in transit Outstanding checks Bank service charge NSF checks Company's notes receivable collected by the bank ollected by the bar Nov 30 P803,115 65,100 72,400 700 15,200 208,310 Dec 31 P1,033,627 The bank statement and the cash record of the company showed the following: Checks and debit memos per bank statement Cash receipts per client records ? 66,320 300 16,900 309,404 P 1,787,798 2,033,130 Additional information: a. A P45,000 bank credit error in November was corrected by the bank in December, while a P22,000 check issued by Bab Corp. was erroneously charged by the bank to the Company's account in December. b. A P150,000 customer collection was recorded by the book in December at P155,000 upon collection. This was detected and corrected in December. c. The accountant recorded a receipt in November for P90,000. The correct amount of the receipt was P70,000. This was detected and corrected in December. d. The book credited a collection made in December from a customer for P20,100. The correct amount of collection is P21,000. e. There were no other items or errors affecting both bank and book. You ascertained that there were no cash shortage and overage in prior periods
In the course of your audit of Pig Company's cash in bank for the year ended December 31, 2023, you ascertained the following information: Particulars Cash per bank statement Deposit in transit Outstanding checks Bank service charge NSF checks Company's notes receivable collected by the bank ollected by the bar Nov 30 P803,115 65,100 72,400 700 15,200 208,310 Dec 31 P1,033,627 The bank statement and the cash record of the company showed the following: Checks and debit memos per bank statement Cash receipts per client records ? 66,320 300 16,900 309,404 P 1,787,798 2,033,130 Additional information: a. A P45,000 bank credit error in November was corrected by the bank in December, while a P22,000 check issued by Bab Corp. was erroneously charged by the bank to the Company's account in December. b. A P150,000 customer collection was recorded by the book in December at P155,000 upon collection. This was detected and corrected in December. c. The accountant recorded a receipt in November for P90,000. The correct amount of the receipt was P70,000. This was detected and corrected in December. d. The book credited a collection made in December from a customer for P20,100. The correct amount of collection is P21,000. e. There were no other items or errors affecting both bank and book. You ascertained that there were no cash shortage and overage in prior periods
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
Related questions
Question
Questions:
2. How much is the adjusted cash balance per books as of November 30?
subpart:
2.1 How much is the correct cash balance as of December 31?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
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.Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning