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 bank statement included the following information: Balance, July 1 550,000 Deposits 1,800,000 Cheeks processed 1,400,000 Service charge 30,000 NSF check 120,000 Monthly loan payment deducted by bank from account 100,000 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 P 30,000 disbursement was incorrectly processed by the bank as P300,000 disbursement. 1. What is the balance per bank on July 31? 2. What amount should be reported as cash in bank on July 31? 3. What is the cash in bank balance per ledger on July 31?

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 bank statement included the following information: Balance, July 1 550,000 Deposits 1,800,000 Cheeks processed 1,400,000 Service charge 30,000 NSF check 120,000 Monthly loan payment deducted by bank from account 100,000 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 P 30,000 disbursement was incorrectly processed by the bank as P300,000 disbursement. 1. What is the balance per bank on July 31? 2. What amount should be reported as cash in bank on July 31? 3. What is the cash in bank balance per ledger on July 31?

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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You are the bookkeeper of Mel Traders. You undertake a bank reconciliation at the end of every month. Mel Traders received its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April. Below are theentity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May: AU Bank - Bank Statement For the period 01/05/2021 – 31/05/2021 Mel Traders Dr Cr Balance $ Balance brought forward 103,965 CR 1 May Deposit 11,700 115,665 CR 3 May Deposit 10,620 126,285 CR May Cheque # 682 4,680 121,605 CR 6 May Deposit 6,120 127,725 CR 8 May # 671 6,300 121,425 CR…
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