PROBLEM 5: In reconciling the cash balance on December 31, 2020 with that shown in the bank statemen Company provided the following information: Balance per bank statement 4,000,000 Outstanding check Deposit in transit 600,000 475,000 Service Charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months 12%, not recorded on Nana Company's books 940,000 Customer's check charged back by bank for absence of counter signature 50,000 Deposit of P100,000 incorrectly recorded by bank as 10,000 Check of Layla's Company charged by bank against Nana's account 150,000 Customer's note collected by bank in favor of Nana Company Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000 435,000 Erroneous debit memo of December 28, to charge Nana's account with settlement of bank loan 200,000 Deposit of Layla Company credited to Nana account 300,000

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 5.21E
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PROBLEM 5: In reconciling the cash balance on December 31, 2020 with that shown in the bank statement, Nana
Company provided the following information:
Balance per bank statement
4,000,000
Outstanding check
600,000
Deposit in transit
475,000
Service Charge
10,000
Proceeds of bank loan, December 1, discounted for 6 months
12%, not recorded on Nana Company's books
940,000
Customer's check charged back by bank for absence of
counter signature
50,000
Deposit of P100,000 incorrectly recorded by bank as
Check of Layla's Company charged by bank against Nana's account
10,000
150,000
Customer's note collected by bank in favor of Nana Company
Face
400,000
Interest
40,000
Total
440,000
Collection fee
5,000
435,000
Erroneous debit memo of December 28, to charge Nana's account
with settlement of bank loan
Deposit of Layla Company credited to Nana account
200,000
300,000
What is the adjusted cash in bank on December 31, 2020?
Transcribed Image Text:PROBLEM 5: In reconciling the cash balance on December 31, 2020 with that shown in the bank statement, Nana Company provided the following information: Balance per bank statement 4,000,000 Outstanding check 600,000 Deposit in transit 475,000 Service Charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months 12%, not recorded on Nana Company's books 940,000 Customer's check charged back by bank for absence of counter signature 50,000 Deposit of P100,000 incorrectly recorded by bank as Check of Layla's Company charged by bank against Nana's account 10,000 150,000 Customer's note collected by bank in favor of Nana Company Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000 435,000 Erroneous debit memo of December 28, to charge Nana's account with settlement of bank loan Deposit of Layla Company credited to Nana account 200,000 300,000 What is the adjusted cash in bank on December 31, 2020?
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