Answered: The deposits in transit on June 30…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Reconciliation of Heaven Company’s bank account at
May 31 is:
Balance per bank statement 2,100,000
Deposits in transit 300,000
Checks outstanding ( 30,000)
Correct cash balance 2,370,000
Balance per book 2,372,000
Bank service charge ( 2,000)
Correct cash balance 2,370,000
June data are as follows:
Bank
Total credits P1,620,000
Total debits 2,300,000
Collection by bank (P400,000
Note plus interest)
420,000
NSF check 10,000
Balance 1,420,000
Books
Deposits recorded 1,800,000
Checks recorded 2,360,000
Balance 1,810,000

The deposits in transit on June 30 amount to
a. P120,000 c. P900,000
b. P480,000 d. P 0

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