The cash balance of AA Company had the following information: Descriptions November December  Cash balances per book P1,200,000 P1,450,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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41

The cash balance of AA Company had the following information:

Descriptions

November

December

 Cash balances per book

P1,200,000

P1,450,000

 Cash balances per bank

1,400,000

1,838,500

 Bank service charges

12,000

11,500

 NSF checks

100,000

150,000

 Notes collected by the bank

350,000

410,000

 Deposit in transit

320,000

?

 Outstanding checks

?

185,000

 Book debit error 

25,000

 Book credit error

50,000

70,000

 Bank credit error

65,000

 Bank debit error

75,000

90,000

 Bank receipts

 

2,550,000

 Book disbursements

 

1,920,000

 Note: errors were corrected in the following period. No other errors affecting the cash balances.

 

Statement 1: The adjusted receipts for the month of December is P2,180,000.

Statement 2: The adjusted disbursement for the month of December is P1,874,500.

Group of answer choices
Both statements are false
Only statement 2 is true
Only statement 1 is true
Both statements are true
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