In the course of your audit of the financial statements of Apayao Corp. for the period ended December 31, 2021, you gathered the following information regarding the entitiy’s current account in BPI: Balances taken from the company’s general ledger: Cash balance, November 30, 2021 P629,860 Cash balance, December 31, 2021 576,420 Receipts, December 1 – 31, 2021 306,220 Balances taken from the December bank statement: Bank balance, November 30, 2021 P685,180 Bank balance, December 31, 2021 637,220 Disbursements (debit) 356,080 Outstanding checks, November 30, 2021 (P26,140 was paid by the bank in December), P72,140. Deposit in transit, November 30, 2021, P15,260. A bank credit memo was issued in December to correct an erroneous charge made in November, P1,500. Note collected by bank in December (company was not informed of the collection), P2,060. A check for P2,020 (payable to a supplier) was recorded in the Check Register in December as P3,000. A check for P2,240 was charged by the bank as P2,420 in December. Apayao Corp. issued a stop payment order to bank in December. This pertains to a check written in December which was not received by the payee. A replacement check was written and released in December. No entry has been made in the books for the write-off of the old check and the release of the new check. Bank service charge, November 30, 2021, P60. What is the total deposit in transit on December 31? Group of answer choices 18,420 14,640 16,920 16,140 What is the total outstanding check on December 31? Group of answer choices 74,080 38,000 62,220 74,860

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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In the course of your audit of the financial statements of Apayao Corp. for the period ended December 31, 2021, you gathered the following information regarding the entitiy’s current account in BPI:

Balances taken from the company’s general ledger:

Cash balance, November 30, 2021	P629,860
Cash balance, December 31, 2021	576,420
Receipts, December 1 – 31, 2021	306,220

Balances taken from the December bank statement:

Bank balance, November 30, 2021	P685,180
Bank balance, December 31, 2021	637,220
Disbursements (debit)	356,080

Outstanding checks, November 30, 2021 (P26,140 was paid by the bank in December), P72,140.
Deposit in transit, November 30, 2021, P15,260.
A bank credit memo was issued in December to correct an erroneous charge made in November, P1,500.
Note collected by bank in December (company was not informed of the collection), P2,060.
A check for P2,020 (payable to a supplier) was recorded in the Check Register in December as P3,000.
A check for P2,240 was charged by the bank as P2,420 in December.
Apayao Corp. issued a stop payment order to bank in December. This pertains to a check written in December which was not received by the payee. A replacement check was written and released in December. No entry has been made in the books for the write-off of the old check and the release of the new check.
Bank service charge, November 30, 2021, P60.

What is the total deposit in transit on December 31?

Group of answer choices

18,420

14,640

16,920

16,140

What is the total outstanding check on December 31?

Group of answer choices

74,080

38,000

62,220

74,860

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