Information pertaining to Trace Company for the month of August 2019 appears below: Balance per bank statement P 310,000 Balance per books 187,500 Deposit in transit 70,000 Service charges 2,500 Note collected by bank 75,000 Outstanding checks ? An analysis of the cancelled checks returned with the bank statement reveals the following: a. Check for the purchase of merchandise was drawn for P155,000 but was recorded as P150,000. b. The management wrote a check for traveling expenses of P25,000 while out of town. The check was not recorded. What are the necessary adjusting entries in the books during the month of August 2019? What is the amount of outstanding checks on August 31, 2019?
Information pertaining to Trace Company for the month of August 2019 appears below: Balance per bank statement P 310,000 Balance per books 187,500 Deposit in transit 70,000 Service charges 2,500 Note collected by bank 75,000 Outstanding checks ? An analysis of the cancelled checks returned with the bank statement reveals the following: a. Check for the purchase of merchandise was drawn for P155,000 but was recorded as P150,000. b. The management wrote a check for traveling expenses of P25,000 while out of town. The check was not recorded. What are the necessary adjusting entries in the books during the month of August 2019? What is the amount of outstanding checks on August 31, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- Information pertaining to Trace Company for the month of August 2019 appears below:
Balance per bank statement P 310,000
Balance per books 187,500
Deposit in transit 70,000
Service charges 2,500
Note collected by bank 75,000
Outstanding checks ?
An analysis of the cancelled checks returned with the bank statement reveals the following:
a. Check for the purchase of merchandise was drawn for P155,000 but was recorded as P150,000.
b. The management wrote a check for traveling expenses of P25,000 while out of town. The check was not recorded.
- What are the necessary
adjusting entries in the books during the month of August 2019? - What is the amount of outstanding checks on August 31, 2019?
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