Pearl Company maintains a checking account at the City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July bank statement included the following information: Balance, July 1 550,000 Deposits 1,800,000 Cheeks processed 1,400,000 Service charge 30,000 NSF check 120,000 Monthly loan payment deducted by bank from account 100,000 Deposits outstanding totaled P100,000 and all checks written by the depositor were processed by the bank except for check of P150,000. A P200,000 July deposit from a credit customer was recorded as P20,000 debit cash and credit accounts receivable. A check correctly recorded by the entity as P 30,000 disbursement was incorrectly processed by the bank as P300,000 disbursement. 1. What is the balance per bank on July 31? 2. What amount should be reported as cash in bank on July 31? 3. What is the cash in bank balance per ledger on July 31?
Pearl Company maintains a checking account at the City Bank. The bank provides a bank
statement along with canceled checks on the last day of each month. The July bank
statement included the following information:
Balance, July 1 550,000
Deposits 1,800,000
Cheeks processed 1,400,000
Service charge 30,000
NSF check 120,000
Monthly loan payment deducted by bank from account 100,000
Deposits outstanding totaled P100,000 and all checks written by the depositor were
processed by the bank except for check of P150,000.
A P200,000 July deposit from a credit customer was recorded as P20,000 debit cash and
credit accounts receivable.
A check correctly recorded by the entity as P 30,000 disbursement was incorrectly
processed by the bank as P300,000 disbursement.
1. What is the balance per bank on July 31?
2. What amount should be reported as cash in bank on July 31?
3. What is the cash in bank balance per ledger on July 31?
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