Answered: The deposits in transit on June 30…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 11EA: Using the following information, prepare a bank reconciliation. Bank balance: $6,988 Book balance:...

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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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