Problem 8. Navotas Company's newly hired assistant prepared the following bank reconciliation on December 31, 2010: Book balance P2,810,000 Add: December 31 deposit in transit Collection of note Interest on note Total Less: Novaliches Company's deposit to our account Bank service charge Adjusted book balance P1,500,000 5,000,000 300,000 6,800,000 9,610,000 2,200,000 90,000 2,290,000 P7,320,000 Bank balance Add: Error on check No. 193 Total Less: Preauthorized payments for water bills NSF check Outstanding check Adjusted bank balance P11,260,000 9,000 11,269,000 P 248,000 440,000 3,219.000 _ 3,907,000 P7,362,000 Check No. 193 was made for the proper amount P489,000 in payment of account. However it was entered in the cash payments journal as P498,000. Navotas authorized the bank to automatically pay its water bill as submitted directly to the bank.

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Chapter1: Financial Statements And Business Decisions
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Answer No. 8 with solutions thank you

Problem 8. Navotas Company's newly hired assistant prepared the following bank reconciliation on
December 31, 2010:
Book balance
P2,810,000
Add: December 31 deposit in transit
Collection of note
P1,500,000
5,000,000
300,000
Interest on note
6,800,000
9,610,000
Total
Less: Novaliches Company's deposit to
2,200,000
90,000
our account
Bank service charge
Adjusted book balance
2,290,000
P7,320,000
Bank balance
P11,260,000
9,000
11,269,000
Add: Error on check No. 193
Total
Less: Preauthorized payments for water
bills
NSF check
P 248,000
440,000
3.219,000
Outstanding check
Adjusted bank balance
3,907,000
P7,362,000
Check No. 193 was made for the proper amount P489,000 in payment of account. However it was
entered in the cash payments journal as P498,000. Navotas authorized the bank to automatically pay its
water bill as submitted directly to the bank.
QUESTION:
Based on the above and the result of your audit, the correct cash in bank balance as of December 31,
2010 is
a. P7,320,000
b. P7,362,000
c. P7,341,000
d. P9,541,000
Transcribed Image Text:Problem 8. Navotas Company's newly hired assistant prepared the following bank reconciliation on December 31, 2010: Book balance P2,810,000 Add: December 31 deposit in transit Collection of note P1,500,000 5,000,000 300,000 Interest on note 6,800,000 9,610,000 Total Less: Novaliches Company's deposit to 2,200,000 90,000 our account Bank service charge Adjusted book balance 2,290,000 P7,320,000 Bank balance P11,260,000 9,000 11,269,000 Add: Error on check No. 193 Total Less: Preauthorized payments for water bills NSF check P 248,000 440,000 3.219,000 Outstanding check Adjusted bank balance 3,907,000 P7,362,000 Check No. 193 was made for the proper amount P489,000 in payment of account. However it was entered in the cash payments journal as P498,000. Navotas authorized the bank to automatically pay its water bill as submitted directly to the bank. QUESTION: Based on the above and the result of your audit, the correct cash in bank balance as of December 31, 2010 is a. P7,320,000 b. P7,362,000 c. P7,341,000 d. P9,541,000
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