How much is the correct cash balanceon December 31, 2020? *Mr. Matee Nik, the accountant of Tikoy Inc. prepared the following bankreconciliation for November 2020:Balance per ledgerBank service chargesP2,372,000(2,000)Adjusted balanceP2,370,000Balance per bank statementP2,100,000Deposit in transit300,000Outstanding checksAdjusted balance(30,000)P2,370,000Information gathered for December 2020 are as follows:BankBookChecks recorded2,300,0002,360,000Deposits recordedCollection by bank (P400,000 noteplus interest)NSF check returned with Dec. 311,620,0001,800,000420,000bank statement10,000Service charge2,000Balances1,828,0001,810,000

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Accounting

How much is the correct cash balance on December 31, 2020?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.21E

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Question

How much is the correct cash balance
on December 31, 2020? *
Mr. Matee Nik, the accountant of Tikoy Inc. prepared the following bank
reconciliation for November 2020:
Balance per ledger
Bank service charges
P2,372,000
(2,000)
Adjusted balance
P2,370,000
Balance per bank statement
P2,100,000
Deposit in transit
300,000
Outstanding checks
Adjusted balance
(30,000)
P2,370,000
Information gathered for December 2020 are as follows:
Bank
Book
Checks recorded
2,300,000
2,360,000
Deposits recorded
Collection by bank (P400,000 note
plus interest)
NSF check returned with Dec. 31
1,620,000
1,800,000
420,000
bank statement
10,000
Service charge
2,000
Balances
1,828,000
1,810,000

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