AA Company maintained cash in bank at Lunar Bank. This account is used for disbursement to various suppliers and had P3,245,000 balance as of December 31, 2022. The selected items below are part of the recorded disbursements in 2022 which are not yet encash by the payee: Check payable to a supplier dated 3/31/2022, released 3/1/2022 P215,000 Check payable to a supplier dated 12/30/2022, released 1/2/2022 195,000 Check payable to a supplier dated 12/31/2022, released 11/15/2022 320,000 Check payable to a supplier dated 1/4/2023, released 12/28/2022 100,000 Check payable to a supplier dated 12/26/2022, released 12/30/2022 185,000   What is the correct cash balance as of December 31, 2022?

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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AA Company maintained cash in bank at Lunar Bank. This account is used for disbursement to various suppliers and had P3,245,000 balance as of December 31, 2022. The selected items below are part of the recorded disbursements in 2022 which are not yet encash by the payee:

Check payable to a supplier dated 3/31/2022, released 3/1/2022

P215,000

Check payable to a supplier dated 12/30/2022, released 1/2/2022

195,000

Check payable to a supplier dated 12/31/2022, released 11/15/2022

320,000

Check payable to a supplier dated 1/4/2023, released 12/28/2022

100,000

Check payable to a supplier dated 12/26/2022, released 12/30/2022

185,000

 

What is the correct cash balance as of December 31, 2022?

 
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