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Adversary Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of June revealed the following information: The cash balance per book on June 30 is P8,500,000. A deposit of P1,000,000 that was placed in the bank's night depository on June 30 does not appear on the bank statement. The bank statement shows on June 30, the bank collected note for adversary Company and credited the proceeds of P950,000 to the entity's account. Checks outstanding on June 30 amount to P300,000. Adversary Company discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity's records as P20,000. • Include with the June bank statement was NSF check for 250,000 that adversary Company had received from a customer on June 26. The bank statement shows a P20,000 service charge for June. What amount should be reported as cash in bank on June 30?

Adversary Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of June revealed the following information: The cash balance per book on June 30 is P8,500,000. A deposit of P1,000,000 that was placed in the bank's night depository on June 30 does not appear on the bank statement. The bank statement shows on June 30, the bank collected note for adversary Company and credited the proceeds of P950,000 to the entity's account. Checks outstanding on June 30 amount to P300,000. Adversary Company discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity's records as P20,000. • Include with the June bank statement was NSF check for 250,000 that adversary Company had received from a customer on June 26. The bank statement shows a P20,000 service charge for June. What amount should be reported as cash in bank on June 30?

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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Adversary Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of June revealed the following information: The cash balance per book on June 30 is P8,500,000. A deposit of P1,000,000 that was placed in the bank's night depository on June 30 does not appear on the bank statement. • The bank statement shows on June 30, the bank collected note for adversary Company and credited the proceeds of P950,000 to the entity's account. Checks outstanding on June 30 amount to P300,000. Adversary Company discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity's records as P20,000. Include with the June bank statement was NSF check for 250,000 that adversary Company had received from a customer on June 26. The bank statement shows a P20,000 service charge for June. What amount should be reported as cash in bank on June 30?
Transcribed Image Text:Adversary Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of June revealed the following information: The cash balance per book on June 30 is P8,500,000. A deposit of P1,000,000 that was placed in the bank's night depository on June 30 does not appear on the bank statement. • The bank statement shows on June 30, the bank collected note for adversary Company and credited the proceeds of P950,000 to the entity's account. Checks outstanding on June 30 amount to P300,000. Adversary Company discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity's records as P20,000. Include with the June bank statement was NSF check for 250,000 that adversary Company had received from a customer on June 26. The bank statement shows a P20,000 service charge for June. What amount should be reported as cash in bank on June 30?
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