PROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November was customer's note for P300,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000. The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000. The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance of P1,456,800. Bank debit memos for December were: No. 121 for service charges, P4,800 and no. 122 on customer's returned check marked "Refer to Drawer" for P72,000. On December 31, 2021 the company placed with the bank a customer's promissory note with a face value of P360,000 for collection. The company treated this note as part of its receipts although the bank was able to collect the note only in January, 2022. A check for P11,880 was recorded in the company cash payments books in December as P118,800. 1. How much is the undeposited collections as of December 31, 2021? b. 538,800 c. 658,800 d. 418,800 a. 1,018,800 2. How much is the outstanding checked as of December 31, 2021? b. 1,192,800 c. 1,085,880 a. 575,880 d. 1,089,480 3. How much is the adjusted cash balance as November 30, 2021? a. 648,000 b. 768,000 c. 528,000 d. 471,600 How much is the adjusted cash balance as of December 31, 2021? b. 586,920 4. a. 1,876,920 c. 660,000 d. 1,126,920
PROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November was customer's note for P300,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000. The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000. The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance of P1,456,800. Bank debit memos for December were: No. 121 for service charges, P4,800 and no. 122 on customer's returned check marked "Refer to Drawer" for P72,000. On December 31, 2021 the company placed with the bank a customer's promissory note with a face value of P360,000 for collection. The company treated this note as part of its receipts although the bank was able to collect the note only in January, 2022. A check for P11,880 was recorded in the company cash payments books in December as P118,800. 1. How much is the undeposited collections as of December 31, 2021? b. 538,800 c. 658,800 d. 418,800 a. 1,018,800 2. How much is the outstanding checked as of December 31, 2021? b. 1,192,800 c. 1,085,880 a. 575,880 d. 1,089,480 3. How much is the adjusted cash balance as November 30, 2021? a. 648,000 b. 768,000 c. 528,000 d. 471,600 How much is the adjusted cash balance as of December 31, 2021? b. 586,920 4. a. 1,876,920 c. 660,000 d. 1,126,920
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
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Transcribed Image Text:PROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your
examination of its financial statements for the year ended December 31, 2021.
The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November
was customer's note for P300,000 collected for the account of the company which the company recognized in
December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a
P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you
ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000.
The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000.
The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance
of P1,456,800. Bank debit memos for December were: No. 121 for service charges, P4,800 and no. 122 on
customer's returned check marked "Refer to Drawer" for P72,000.
On December 31, 2021 the company placed with the bank a customer's promissory note with a face value of
P360,000 for collection. The company treated this note as part of its receipts although the bank was able to collect
the note only in January, 2022.
A check for P11,880 was recorded in the company cash payments books in December as P118,800.
1. How much is the undeposited collections as of December 31, 2021?
b. 538,800
c. 658,800
a. 1,018,800
d. 418,800
2. How much is the outstanding checked as of December 31, 2021?
b. 1,192,800
c. 1,085,880
a. 575,880
d. 1,089,480
3. How much is the adjusted cash balance as November 30, 2021?
a. 648,000
b. 768,000
c. 528,000
d. 471,600
4.
How much is the adjusted cash balance as of December 31, 2021?
a. 1,876,920
b. 586,920
c. 660,000
d. 1,126,920
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