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Lee Co. 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 was P8,500,000. A deposit of P1.000.000 that was placed in the bank's night depository on June 30 did not appear on the bank statement. The bank statement showed that on June 30 the bank collected note for the entity and credited the proceeds of P950,000 to the entity's account, net of collection charge P50,000. Checks outstanding on June 30 amounted to P300,000 including a certified check of P100,000. The entity 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. Included with the June bank statement was NSF check for P250,000 received from a customer on June 26. The bank statement showed a P20,000 service charge for June. 1. What amount should be reported as cash in bank on June 30? 2. What is the balance per bank statement on June 30? 3. What is the net adjustment to cash in bank on June 30?

Lee Co. 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 was P8,500,000. A deposit of P1.000.000 that was placed in the bank's night depository on June 30 did not appear on the bank statement. The bank statement showed that on June 30 the bank collected note for the entity and credited the proceeds of P950,000 to the entity's account, net of collection charge P50,000. Checks outstanding on June 30 amounted to P300,000 including a certified check of P100,000. The entity 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. Included with the June bank statement was NSF check for P250,000 received from a customer on June 26. The bank statement showed a P20,000 service charge for June. 1. What amount should be reported as cash in bank on June 30? 2. What is the balance per bank statement on June 30? 3. What is the net adjustment to 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 1PB
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PROBLEM #4 Lee Co. 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 was P8,500,000. A deposit of P1.000,000 that was placed in the bank's night depository on June 30 did not appear on the bank statement. The bank statement showed that on June 30 the bank collected note for the entity and credited the proceeds of P950,000 to the entity's account, net of collection charge P50,000. Checks outstanding on June 30 amounted to P300,000 including a certified check of P100,000. The entity 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. Included with the June bank statement was NSF check for P250,000 received from a customer on June 26. The bank statement showed a P20,000 service charge for June. 1. What amount should be reported as cash in bank on June 30? 2. What is the balance per bank statement on June 30? 3. What is the net adjustment to cash in bank on June 30?
Transcribed Image Text:PROBLEM #4 Lee Co. 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 was P8,500,000. A deposit of P1.000,000 that was placed in the bank's night depository on June 30 did not appear on the bank statement. The bank statement showed that on June 30 the bank collected note for the entity and credited the proceeds of P950,000 to the entity's account, net of collection charge P50,000. Checks outstanding on June 30 amounted to P300,000 including a certified check of P100,000. The entity 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. Included with the June bank statement was NSF check for P250,000 received from a customer on June 26. The bank statement showed a P20,000 service charge for June. 1. What amount should be reported as cash in bank on June 30? 2. What is the balance per bank statement on June 30? 3. What is the net adjustment to cash in bank on June 30?
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