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journal as P294,000. Carefree authorized the bank to automatically pay its water bill as submitted directly to the bank. The correct cash in bank balance is Book balance P1,405,000 P 750,000 2,500,000 150,000 Add: March 31 deposit Collection of note 3,400,000 4,805,000 Interest on note Total Less: Careless Company's deposit to our account 1,100,000 Bank service charge Adjusted book balance 45,000 1,145.000 3,660,000 Bank balance P5,630,000 45,000 5,675,000 Add: Error on check No. 175 Total Less: Preauthorized payments for water bills NSF check Outstanding check Adjusted bank balance 205,000 220,000 1,650,000 2,075,000 3,660,000 O P3,660,000 O P3,600,000 O P2,880,000 O P3,630,000

journal as P294,000. Carefree authorized the bank to automatically pay its water bill as submitted directly to the bank. The correct cash in bank balance is Book balance P1,405,000 P 750,000 2,500,000 150,000 Add: March 31 deposit Collection of note 3,400,000 4,805,000 Interest on note Total Less: Careless Company's deposit to our account 1,100,000 Bank service charge Adjusted book balance 45,000 1,145.000 3,660,000 Bank balance P5,630,000 45,000 5,675,000 Add: Error on check No. 175 Total Less: Preauthorized payments for water bills NSF check Outstanding check Adjusted bank balance 205,000 220,000 1,650,000 2,075,000 3,660,000 O P3,660,000 O P3,600,000 O P2,880,000 O P3,630,000

FINANCIAL ACCOUNTING
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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Kindly help me answer the two questions

1. Carefree Company's newly hired assistant prepared the following bank reconciliation on March 31, 2012:Check No. 175 was made for the proper amount P249,000 in payment of account. However it was entered in the cash payments journal as P294,000. Carefree authorized the bank to automatically pay its water bill as submitted directly to the bank. The correct cash in bank balance is? (See attached photo for continuation of the problem)

2. Which measurement basis is currently used in financial statements? *
a. Settlement value and fair value
b. Present value, settlement value and fair value
c. Present value and settlement value
d. Present value
journal as P294,000. Carefree authorized the bank to automatically pay its water bill as submitted directly to the bank. The correct cash in bank balance is * Book balance P1,405,000 P 750,000 2,500,000 150,000 Add: March 31 deposit Collection of note Interest on note 3.400,000 4,805,000 Total Less: Careless Company's deposit to our account 1,100,000 Bank service charge Adjusted book balance 45,000 1,145.000 3,660,000 Bank balance P5,630,000 45,000 5,675,000 Add: Error on check No. 175 Total Less: Preauthorized payments for water bills 205,000 220,000 1,650,000 NSF check Outstanding check Adjusted bank balance 2,075,000 3,660,000 O P3,660,000 O P3,600,000 O P2,880,000 O P3,630,000
Transcribed Image Text:journal as P294,000. Carefree authorized the bank to automatically pay its water bill as submitted directly to the bank. The correct cash in bank balance is * Book balance P1,405,000 P 750,000 2,500,000 150,000 Add: March 31 deposit Collection of note Interest on note 3.400,000 4,805,000 Total Less: Careless Company's deposit to our account 1,100,000 Bank service charge Adjusted book balance 45,000 1,145.000 3,660,000 Bank balance P5,630,000 45,000 5,675,000 Add: Error on check No. 175 Total Less: Preauthorized payments for water bills 205,000 220,000 1,650,000 NSF check Outstanding check Adjusted bank balance 2,075,000 3,660,000 O P3,660,000 O P3,600,000 O P2,880,000 O P3,630,000
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