PROBLEM 4: MULTIPLE CHOICE-COMPUTATIONAL 1. In preparing its August 31, 2004 bank reconciliation, Cloud Corp. has made available the following information: Balance per bank statement, 8/31/04 Deposit in transit, 8/31/04 Return of customer's check for insufficient funds Outstanding checks, 8/31/04 Bank service charges for August Erroneous credit by bank P25,650 5,900 600 750 100 2,000 At August 31, 2004, Cloud's correct cash balance is b. P28,200. c. P28,100. d. P26,500. a. P28,800. (Adapted)

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PROBLEM 4: MULTIPLE CHOICE- COMPUTATIONAL
1. In preparing its August 31, 2004 bank reconciliation, Cloud
Corp. has made available the following information:
Balance per bank statement, 8/31/04
Deposit in transit, 8/31/04
Return of customer's check for insufficient funds
P25,650
5,900
600
Outstanding checks, 8/31/04
Bank service charges for August
Erroneous credit by bank
750
100
2,000
At August 31, 2004, Cloud's correct cash balance is
b. P28,200.
a. P28,800.
c. P28,100.
d. P26,500.
(Adapted)
2. The books of Steve's Service, Inc. disclosed a cash balance of
P68,757 on June 30. The bank statement as of June 30 showed a
balance of P54,780. Additional information that might be
useful in reconciling the two balances follows:
Check number 748 drawn for P3,000 was originally
a.
recorded on the books as P4,500.
b. A customer's note dated March 25 was discounted on
April 12. The note was dishonored on June 29 (maturity
date). The bank charged Steve's account for P14,265,
including a protest fee of P42.
C. The deposit on June 24 was recorded on the books as
P2,895 but it was actually a deposit of P2,700.
d. Outstanding checks totaled P9,885 as of June 30.
There were bank service charges for June of P210 not yet
e.
recorded on the books.
f. Steve's account had been charged on June 26 for a
customer's NSF check for P1,296.
g. Steve properly deposited P600 on June 3 but it was not
recorded by the bank.
h. Receipts on June 30 for P13,425 were recorded by the bank
on July 2.
A bank memo stated that a customer's note for P4,500 and
interest of P165 had been collected on June 27, and the
bank charged a P36 collection fee.
i.
How much is the adjusted balance of cash on June 30?
b. 41,230
b. 58,920
d. 62,890
a. 34,890
(Adapted)
Transcribed Image Text:PROBLEM 4: MULTIPLE CHOICE- COMPUTATIONAL 1. In preparing its August 31, 2004 bank reconciliation, Cloud Corp. has made available the following information: Balance per bank statement, 8/31/04 Deposit in transit, 8/31/04 Return of customer's check for insufficient funds P25,650 5,900 600 Outstanding checks, 8/31/04 Bank service charges for August Erroneous credit by bank 750 100 2,000 At August 31, 2004, Cloud's correct cash balance is b. P28,200. a. P28,800. c. P28,100. d. P26,500. (Adapted) 2. The books of Steve's Service, Inc. disclosed a cash balance of P68,757 on June 30. The bank statement as of June 30 showed a balance of P54,780. Additional information that might be useful in reconciling the two balances follows: Check number 748 drawn for P3,000 was originally a. recorded on the books as P4,500. b. A customer's note dated March 25 was discounted on April 12. The note was dishonored on June 29 (maturity date). The bank charged Steve's account for P14,265, including a protest fee of P42. C. The deposit on June 24 was recorded on the books as P2,895 but it was actually a deposit of P2,700. d. Outstanding checks totaled P9,885 as of June 30. There were bank service charges for June of P210 not yet e. recorded on the books. f. Steve's account had been charged on June 26 for a customer's NSF check for P1,296. g. Steve properly deposited P600 on June 3 but it was not recorded by the bank. h. Receipts on June 30 for P13,425 were recorded by the bank on July 2. A bank memo stated that a customer's note for P4,500 and interest of P165 had been collected on June 27, and the bank charged a P36 collection fee. i. How much is the adjusted balance of cash on June 30? b. 41,230 b. 58,920 d. 62,890 a. 34,890 (Adapted)
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