Answered: Barotil Company provided the following…

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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Barotil Company provided the following information for the month of December: Balance per bank statement 4,000,000 Balance per cash book 2,700,000 Outstanding Checks 600,000 Deposit in Transit 475,000 Service Charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months at 12% not recorded on company books 940,000 Customer’s check charged back by bank for absence of Counter signature 50,000 Deposit of P100,000 incorrectly recorded by bank as 10,000 Check of Buendia Company charged by bank against Barotil Company Account 150,000 Customer’s Note collected by bank in favor of Barotil Company Face 400,000 Interest 40,000 Total 440,000 Collection Fee 5,000 435,000 Erroneous debit memo of December 28, to charge company’s Account with settlement of bank loan 200,000 Deposit of Buendia Company credited to Barotil Company 300,000 1. What is the adjusted cash in bank on December 31?

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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