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

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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