Answered: An entity has P2,201,000 cash balance…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 21E

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3. An entity has P2,201,000 cash balance per books, P521,000 deposit in transit, P543,000 outstanding checks, P390,000 notes collected by the bank from entity's customer, P600 bank service charge and P89,000 NSF check. What is the adjusted cash balance?

A. P2,048,000
B. P2,502,400
C. P2,501,400
D. P2,179,000

4. When preparing a bank reconciliation, interest credited to the business’ bank account but not yet recorded in the books of account is...

A. Added to the balance of cash per books
B. Deducted from the balance of cash per books
C. Added to the balance per bank statement
D. Deducted from the balance per bank statement

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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