Problem 2-15 (AICPA Adapted)Pearl Company maintains a checking account at the CityBank. The bank provides a bank statement along withcanceled checks on the last day of each month. The July bankstatement included the following information:Balance, July 1DepositsChecks processedService chargeNSF check550,0001,800,0001,400,00030,000120,000100,000Monthly loan payment deducted by bank from accountDeposits outstanding totaled P100,000 and all checks writtenby the depositor were processed by the bank except for checkof P150,000.A P200,000 July deposit from a credit customer was recordedas P20,000 debit cash and credit accounts receivable.A check correctly recorded by the entity as P30,000disbursement was incorrectly processed by the bank asP300,000 disbursement.1. What is the balance per bank on July 31?a. 700,000b. 550,000c. 800,000d. 950,0002. What amount should be reported as cash in bank onJuly 31?a. 650,000b. 920,000c. 380,000d. 970,000at3. What is the cash in bank balance per ledger on July 31?a. 1,350,000b. 1,170,000990,000890,000с.d.

1. Calculation of Balance as per bank in July 31…

What is the balance per bank on July 31? a. 700,000 b. 550,000 c. 800,000 d. 950,000 . What amount should be reported as cash in bank on July 31? a. 650,000 b. 920,000 c. 380,000 d. 970,000 E. What is the cash in bank balance per ledger on July 31? a. 1,350,000 b. 1,170,000 990,000 890,000 C. d.

What is the balance per bank on July 31? a. 700,000 b. 550,000 c. 800,000 d. 950,000 . What amount should be reported as cash in bank on July 31? a. 650,000 b. 920,000 c. 380,000 d. 970,000 E. What is the cash in bank balance per ledger on July 31? a. 1,350,000 b. 1,170,000 990,000 890,000 C. d.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Problem 2-15 (AICPA Adapted)
Pearl Company maintains a checking account at the City
Bank. The bank provides a bank statement along with
canceled checks on the last day of each month. The July bank
statement included the following information:
Balance, July 1
Deposits
Checks processed
Service charge
NSF check
550,000
1,800,000
1,400,000
30,000
120,000
100,000
Monthly loan payment deducted by bank from account
Deposits outstanding totaled P100,000 and all checks written
by the depositor were processed by the bank except for check
of P150,000.
A P200,000 July deposit from a credit customer was recorded
as P20,000 debit cash and credit accounts receivable.
A check correctly recorded by the entity as P30,000
disbursement was incorrectly processed by the bank as
P300,000 disbursement.
1. What is the balance per bank on July 31?
a. 700,000
b. 550,000
c. 800,000
d. 950,000
2. What amount should be reported as cash in bank on
July 31?
a. 650,000
b. 920,000
c. 380,000
d. 970,000
at
3. What is the cash in bank balance per ledger on July 31?
a. 1,350,000
b. 1,170,000
990,000
890,000
с.
d.

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