Pearl Company maintains a checking account at the City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July bànk statement included the following information: Balance, July 1 Deposits Checks processed Service charge NSF check 550,000 1,800,000 1,400,000 30,000 120,000 100,000 Monthly loan payment deducted by bank from account Deposits outstanding totaled P100,000 and all checks written by the depositor were processed by the bank except for check of P150,000. A P200,000 July deposit from a credit customer was recorded as P20,000 debit cash and credit accounts receivable. A check correctly recorded by the entity as P30,000 disbursement was incorrectly processed by the bank as P300,000 disbursement. 1. What is the balance per bank on July 31? a. 700,000 b. 550,000 c. 800,000 d. 950,000 2. What amount should be reported as cash in bank on July 31? a. 650,000 b. 920,000 c. 380,000 d. 970,000 3. What is the cash in bank balance per ledger on July 31? a. 1,350,000 b. 1,170,000 990,000 d. с. 890,000
Pearl Company maintains a checking account at the City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July bànk statement included the following information: Balance, July 1 Deposits Checks processed Service charge NSF check 550,000 1,800,000 1,400,000 30,000 120,000 100,000 Monthly loan payment deducted by bank from account Deposits outstanding totaled P100,000 and all checks written by the depositor were processed by the bank except for check of P150,000. A P200,000 July deposit from a credit customer was recorded as P20,000 debit cash and credit accounts receivable. A check correctly recorded by the entity as P30,000 disbursement was incorrectly processed by the bank as P300,000 disbursement. 1. What is the balance per bank on July 31? a. 700,000 b. 550,000 c. 800,000 d. 950,000 2. What amount should be reported as cash in bank on July 31? a. 650,000 b. 920,000 c. 380,000 d. 970,000 3. What is the cash in bank balance per ledger on July 31? a. 1,350,000 b. 1,170,000 990,000 d. с. 890,000
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
![Problem 2-19 (AICPA Adapted)
Pearl Company maintains. a checking account at the City
Bank. The bank provides a bank statement along with
canceled checks on the last day of each month. The July bànk
statement included the following information:
Balance, July 1
Deposits
Checks processed
Service charge
550,000
1,800,000
1,400,000
30,000
120,000
100,000
NSF check
Monthly loan payment deducted by bank from account
Deposits outstanding totaled P100,000 and all checks written
by the depositor were processed by the bank except for check
of P150,000.
A P200,000 July deposit from a credit customer was recorded
as P20,000 debit cash and credit accounts receivable.
A check correctly recorded by the entity as P30,000
disbursement was incorrectly processed by the bank as
P300,000 disbursement.
1. What is the balance per bank on July 31?
а. 700,000
b. 550,000
c.. 800,000
d. 950,000
2. What amount should be reported as cash in bank on
July 31?
а. 650,000
b. 920,000
c. 380,000
d. 970,000
3. What is the cash in bank balance per ledger on July 31?
a. 1,350,000
b. 1,170,000
990,000
d.
с.
890,000
CS](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F47ba8ab8-8ee9-4c19-9b13-480b1c70a3ff%2F5d795ba5-5225-4bfb-bc32-b90dbd6175ac%2Fz92yalm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 2-19 (AICPA Adapted)
Pearl Company maintains. a checking account at the City
Bank. The bank provides a bank statement along with
canceled checks on the last day of each month. The July bànk
statement included the following information:
Balance, July 1
Deposits
Checks processed
Service charge
550,000
1,800,000
1,400,000
30,000
120,000
100,000
NSF check
Monthly loan payment deducted by bank from account
Deposits outstanding totaled P100,000 and all checks written
by the depositor were processed by the bank except for check
of P150,000.
A P200,000 July deposit from a credit customer was recorded
as P20,000 debit cash and credit accounts receivable.
A check correctly recorded by the entity as P30,000
disbursement was incorrectly processed by the bank as
P300,000 disbursement.
1. What is the balance per bank on July 31?
а. 700,000
b. 550,000
c.. 800,000
d. 950,000
2. What amount should be reported as cash in bank on
July 31?
а. 650,000
b. 920,000
c. 380,000
d. 970,000
3. What is the cash in bank balance per ledger on July 31?
a. 1,350,000
b. 1,170,000
990,000
d.
с.
890,000
CS
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning