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PROBLEM 5: In reconciling the cash balance on December 31, 2020 with that shown in the bank statemen Company provided the following information: Balance per bank statement 4,000,000 Outstanding check Deposit in transit 600,000 475,000 Service Charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months 12%, not recorded on Nana Company's 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 Layla's Company charged by bank against Nana's account 150,000 Customer's note collected by bank in favor of Nana Company Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000 435,000 Erroneous debit memo of December 28, to charge Nana's account with settlement of bank loan 200,000 Deposit of Layla Company credited to Nana account 300,000

PROBLEM 5: In reconciling the cash balance on December 31, 2020 with that shown in the bank statemen Company provided the following information: Balance per bank statement 4,000,000 Outstanding check Deposit in transit 600,000 475,000 Service Charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months 12%, not recorded on Nana Company's 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 Layla's Company charged by bank against Nana's account 150,000 Customer's note collected by bank in favor of Nana Company Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000 435,000 Erroneous debit memo of December 28, to charge Nana's account with settlement of bank loan 200,000 Deposit of Layla Company credited to Nana account 300,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 60APSA
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PROBLEM 5: In reconciling the cash balance on December 31, 2020 with that shown in the bank statement, Nana Company provided the following information: Balance per bank statement 4,000,000 Outstanding check 600,000 Deposit in transit 475,000 Service Charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months 12%, not recorded on Nana Company's 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 Check of Layla's Company charged by bank against Nana's account 10,000 150,000 Customer's note collected by bank in favor of Nana Company Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000 435,000 Erroneous debit memo of December 28, to charge Nana's account with settlement of bank loan Deposit of Layla Company credited to Nana account 200,000 300,000 What is the adjusted cash in bank on December 31, 2020?
Transcribed Image Text:PROBLEM 5: In reconciling the cash balance on December 31, 2020 with that shown in the bank statement, Nana Company provided the following information: Balance per bank statement 4,000,000 Outstanding check 600,000 Deposit in transit 475,000 Service Charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months 12%, not recorded on Nana Company's 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 Check of Layla's Company charged by bank against Nana's account 10,000 150,000 Customer's note collected by bank in favor of Nana Company Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000 435,000 Erroneous debit memo of December 28, to charge Nana's account with settlement of bank loan Deposit of Layla Company credited to Nana account 200,000 300,000 What is the adjusted cash in bank on December 31, 2020?
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