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The accountant of GHI Company prepared the following bank reconciliation at December 31,2020: P 350,000 175,250 15,000 P 540,250 246,750 P 293,500 Balance per bank statement Add: deposit in transit Note collected by bank Total Less: Outstanding checks Balance per ledger It was discovered that : a.) At December 31,2020, the bank statement and the general ledger showed balances of P 350,000 and P 293,500, respectively. b.) The cut-off bank statement showed a bank charge on January 2,2021 for P 25,000 representing a correction of an erroneous bank credit. c.) Included in the list of outstanding checks were the following: A check payable to a supplier date December 29,2020,in the amount of P 15,000 released on January 5,2021. A check representing advance payment to a supplier in the amount of P 37,200, the date of which is January 4,2021 and released in December 2020. d.) On December 31,2020, the company received and recorded a customer's check dated January 2021 amounting to P 50.000.

The accountant of GHI Company prepared the following bank reconciliation at December 31,2020: P 350,000 175,250 15,000 P 540,250 246,750 P 293,500 Balance per bank statement Add: deposit in transit Note collected by bank Total Less: Outstanding checks Balance per ledger It was discovered that : a.) At December 31,2020, the bank statement and the general ledger showed balances of P 350,000 and P 293,500, respectively. b.) The cut-off bank statement showed a bank charge on January 2,2021 for P 25,000 representing a correction of an erroneous bank credit. c.) Included in the list of outstanding checks were the following: A check payable to a supplier date December 29,2020,in the amount of P 15,000 released on January 5,2021. A check representing advance payment to a supplier in the amount of P 37,200, the date of which is January 4,2021 and released in December 2020. d.) On December 31,2020, the company received and recorded a customer's check dated January 2021 amounting to P 50.000.

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 5DQ
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  1.  What is the correct cash balance as of December 31,2020?
  2. What is the correct amount of outstanding checks as of December 31,2020?
  3. What is the correct amount of deposit in transit on December 31,2020?
 
The accountant of GHI Company prepared the following bank reconciliation at December 31,2020: P 350,000 175,250 15,000 P 540,250 246,750 P 293,500 Balance per bank statement Add: deposit in transit Note collected by bank Total Less: Outstanding checks Balance per ledger It was discovered that : a.) At December 31,2020, the bank statement and the general ledger showed balances of P 350,000 and P 293,500, respectively. b.) The cut-off bank statement showed a bank charge on January 2,2021 for P 25,000 representing a correction of an erroneous bank credit. c.) Included in the list of outstanding checks were the following: A check payable to a supplier date December 29,2020,in the amount of P 15,000 released on January 5,2021. A check representing advance payment to a supplier in the amount of P 37,200, the date of which is January 4,2021 and released in December 2020. d.) On December 31,2020, the company received and recorded a customer's check dated January 2021 amounting to P 50,000.
Transcribed Image Text:The accountant of GHI Company prepared the following bank reconciliation at December 31,2020: P 350,000 175,250 15,000 P 540,250 246,750 P 293,500 Balance per bank statement Add: deposit in transit Note collected by bank Total Less: Outstanding checks Balance per ledger It was discovered that : a.) At December 31,2020, the bank statement and the general ledger showed balances of P 350,000 and P 293,500, respectively. b.) The cut-off bank statement showed a bank charge on January 2,2021 for P 25,000 representing a correction of an erroneous bank credit. c.) Included in the list of outstanding checks were the following: A check payable to a supplier date December 29,2020,in the amount of P 15,000 released on January 5,2021. A check representing advance payment to a supplier in the amount of P 37,200, the date of which is January 4,2021 and released in December 2020. d.) On December 31,2020, the company received and recorded a customer's check dated January 2021 amounting to P 50,000.
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