What is the correct amount to be shown as Cash on Cotton Company's December 31 2020 statement of financial position? * Cotton Company's checkbook balance at December 31, 2020 was P180,000. In addition, Cotton held the following items in its safe on that date. * Check payable to Cotton amounting to P65,000 dated January 2, 2021 in payment of a sale made in December 2020, was included in the December 31, 2020 checkbook balance. * Check payable to Cotton was deposited on December 15, 2020 but returned by the bank on December 29, 2020 stamped "DAIF." No entry has yet been made to record the return of this P20,000 check. * Check drawn on Cotton's account, payable to a vendor, was dated and recorded on December 28, 2020. This check amounting to P15,000, however, was not yet mailed to the payee as of December 31, 2020.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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What is the correct amount to
be shown as Cash on Cotton
Company's December 31 2020
statement of financial
position?
Cotton Company's checkbook balance at December 31, 2020 was P180,000. In
addition, Cotton held the following items in its safe on that date.
* Check payable to Cotton amounting to P65,000 dated January 2, 2021 in payment
of a sale made in December 2020, was included in the December 31, 2020
checkbook balance.
* Check payable to Cotton was deposited on December 15, 2020 but returned by the
bank on December 29, 2020 stamped "DAIF." No entry has yet been made to record
the return of this P20,000 check.
* Check drawn on Cotton's account, payable to a vendor, was dated and recorded on
December 28, 2020. This check amounting to P15,000, however, was not yet mailed
to the payee as of December 31, 2020.
Transcribed Image Text:What is the correct amount to be shown as Cash on Cotton Company's December 31 2020 statement of financial position? Cotton Company's checkbook balance at December 31, 2020 was P180,000. In addition, Cotton held the following items in its safe on that date. * Check payable to Cotton amounting to P65,000 dated January 2, 2021 in payment of a sale made in December 2020, was included in the December 31, 2020 checkbook balance. * Check payable to Cotton was deposited on December 15, 2020 but returned by the bank on December 29, 2020 stamped "DAIF." No entry has yet been made to record the return of this P20,000 check. * Check drawn on Cotton's account, payable to a vendor, was dated and recorded on December 28, 2020. This check amounting to P15,000, however, was not yet mailed to the payee as of December 31, 2020.
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