In the process of your examination of the financial statements of the Malu-oy Company for the year ended December 31, 20X6, you obtained the following data on its current account. The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank
In the process of your examination of the financial statements of the Malu-oy Company for the year ended December
31, 20X6, you obtained the following data on its current account.
The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank credits in November was
a customer’s note for P25,000 collected for the account of the company which the company recognized in December
among its receipts. Included on the bank debits were cost of checkbooks amounting to P300 and a P10,000 check
which was charged by the bank in error against Malu-oy Company account. Also in November, you ascertained that
there were deposits in transit amounting to P20,000 and outstanding checks totaling P42,500. The bank statement for
the month of December showed total credit of P104,000 and total charges of P51,000. The company’s books for
December showed total receipts of P183,900, disbursements of P101,800 and a balance of P121,400. Bank debit
memos for December were: No. 14334 for service charges. P400 and No. 14346 on a customer’s returned check
marked “DAIF” for P6,000. On December 31, 20X6 the company placed with the bank a customer’s promissory note
with a face value of P30,000 for collection. The company treated this note as part of its receipts although the bank was
able to collect on the note only in January, 20X7. A check for P990 was recorded in the company cash payments books
in December as P9,900.
Based on the above data, you are to provide the answers to the following:
A. How much is the undeposited collections as of December 31, 20X6?
B. How much is the outstanding checks as of December 31, 20X6?
C. How much is the adjusted cash balance as of November 30, 20X6?
D. How much is the adjusted bank receipts for December?
E. How much is the adjusted book disbursements for December?
F. How much is the adjusted cash balance as of December 31, 20X6?
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