Problem 2: Cash Valuation/Computation The cash account in the current asset section of the balance sheet for Cheater Company showed a balance of P555,000. It was found to include the following items. Petty cash fund (P1,000 in the form of paid vouchers) 5,000 Checking account balance, per bank statement (P25,000 check is still outstanding) 255,000 Undeposited receipts, including a post-dated check of P5,000 120,000 Currencies and coins awaiting deposits 55,000 Bond Sinking Fund - cash 100,000 Check drawn by the manager, returned by bank marked NSF 20,000 Requirement: What is the correct cash balance for Cheater Company's statement of financial position?
Problem 2: Cash Valuation/Computation The cash account in the current asset section of the balance sheet for Cheater Company showed a balance of P555,000. It was found to include the following items. Petty cash fund (P1,000 in the form of paid vouchers) 5,000 Checking account balance, per bank statement (P25,000 check is still outstanding) 255,000 Undeposited receipts, including a post-dated check of P5,000 120,000 Currencies and coins awaiting deposits 55,000 Bond Sinking Fund - cash 100,000 Check drawn by the manager, returned by bank marked NSF 20,000 Requirement: What is the correct cash balance for Cheater Company's statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Problem 2: Cash Valuation/Computation
The cash account in the current asset section of the balance sheet for Cheater Company showed a balance of P555,000. It was found to include the following items.
| Petty cash fund (P1,000 in the form of paid vouchers) | 5,000 | |
|
Checking account balance, per bank statement (P25,000 check is still outstanding)
|
255,000 | |
| Undeposited receipts, including a post-dated check of P5,000 | 120,000 | |
| Currencies and coins awaiting deposits | 55,000 | |
| Bond Sinking Fund - cash | 100,000 | |
| Check drawn by the manager, returned by bank marked NSF | 20,000 |
Requirement:
What is the correct cash balance for Cheater Company's
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education