The books of Cajardo Service, Inc. disclosed a cash balance of P687,570 on December 31, 2010. The bank statement as of December 31 showed a balance of P547,800. Additional information that might be useful in reconciling the two balances follows: A. Check No. 748 for P30,000 was originally recorded on the books as P45,000. B. A customer's note dated September 25 was discounted on October 12. The note was dishonored on December 29, the note's maturity date. The bank charged Cajardo's account for P142,650, including a protest fee of P2,650. C. The deposit of December 24 was recorded on the books as P28,950 but it was actually a deposit of P27,000. D. Outstanding checks totaled P98,850 as of December 31. E. There was a bank service charge for December of P2,100 not yet recorded on the books. F. Cajardo's account had been charged on December 26 for a customer's NSF check for P12,960. G. Cajardo properly deposited P6,000 on December 3 that was not recorded by the bank. H. Receipts of December 31 for P134, 250 were recorded by the bank on January 2. I. A bank memo stated that a customer's note for P45, 000 and interest of P1,650 had been collected on December 27 and the bank charge P360 collection fee. Based on the above and the result of your audit, answer the following questions: 7. What is the adjusted cash in bank balance on December 31? 8. The net adjustment to cash as of December 31, 2010 would be a credit of:
The books of Cajardo Service, Inc. disclosed a cash balance of P687,570 on December 31, 2010. The bank statement as of December 31 showed a balance of P547,800. Additional information that might be useful in reconciling the two balances follows: A. Check No. 748 for P30,000 was originally recorded on the books as P45,000. B. A customer's note dated September 25 was discounted on October 12. The note was dishonored on December 29, the note's maturity date. The bank charged Cajardo's account for P142,650, including a protest fee of P2,650. C. The deposit of December 24 was recorded on the books as P28,950 but it was actually a deposit of P27,000. D. Outstanding checks totaled P98,850 as of December 31. E. There was a bank service charge for December of P2,100 not yet recorded on the books. F. Cajardo's account had been charged on December 26 for a customer's NSF check for P12,960. G. Cajardo properly deposited P6,000 on December 3 that was not recorded by the bank. H. Receipts of December 31 for P134, 250 were recorded by the bank on January 2. I. A bank memo stated that a customer's note for P45, 000 and interest of P1,650 had been collected on December 27 and the bank charge P360 collection fee. Based on the above and the result of your audit, answer the following questions: 7. What is the adjusted cash in bank balance on December 31? 8. The net adjustment to cash as of December 31, 2010 would be a credit of:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The books of Cajardo Service, Inc. disclosed a cash balance of P687,570 on December 31, 2010.
The bank statement as of December 31 showed a balance of P547,800. Additional information
that might be useful in reconciling the two balances follows:
A. Check No. 748 for P30,000 was originally recorded on the books as P45,000.
B. A customer's note dated September 25 was discounted on October 12. The note was
dishonored on December 29, the note's maturity date. The bank charged Cajardo's
account for P142,650, including a protest fee of P2,650.
C. The deposit of December 24 was recorded on the books as P28,950 but it was actually a
deposit of P27,000.
D. Outstanding checks totaled P98,850 as of December 31.
E. There was a bank service charge for December of P2,100 not yet recorded on the books.
F. Cajardo's account had been charged on December 26 for a customer's NSF check for
P12,960.
G. Cajardo properly deposited P6,000 on December 3 that was not recorded by the bank.
H. Receipts of December 31 for P134, 250 were recorded by the bank on January 2.
I. A bank memo stated that a customer's note for P45, 000 and interest of P1,650 had been
collected on December 27 and the bank charge P360 collection fee.
Based on the above and the result of your audit, answer the following questions:
7. What is the adjusted cash in bank balance on December 31?
8. The net adjustment to cash as of December 31, 2010 would be a credit of:
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 with 2 images
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