Homework Help is Here – Start Your Trial Now!
Business
Accounting
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)

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)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please include explanation

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)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

Please answer the number 2 problem. Thank you! 

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Basic Accounting Terms
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS