Reference no: EM132690873

Scorpio Company 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:

1. The cash balance per book on June 30 was P8,500,000
2. 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.
3. 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
4. Checks outstanding on June 30 amounted to P300,000 including certified check for P100,000
5. 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
6. Included with the June bank statement was NSF check for P250,000 received from a customer on June 26
7. The bank statement showed a P20,000 service charge for June

Problem 1: What amount should be reported as cash in bank on June 30?

Problem 2: What is the balance per bank statement on June 30?