What is the net adjustment to cash in bank on june 30

Assignment Help Accounting Basics

Reference no: EM132226971

Problem:

Adversary 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:

• The cash balance per book on June 30 is P8,500,000.
• A deposit of P1,000,000 that was placed in the bank's night depository on June 30 does not appear on the bank statement.
• The bank statement shows on June 30, the bank collected note for Adversary Company and credited the proceeds of P950,000 to the entity's account.
• Checks outstanding on June 30 amount to P300,000.
• Adversary Company 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 that Adversary Company had received from a customer on June 26.
• The bank statement shows a P20,000 service charge for June.

1. What is the cash in bank to be reported on June 30?
a. 9,180,000
b. 9,360,000
c. 9,000,000
d. 3,300,000

2. What is the net adjustment to cash in bank on June 30?
a. Net debit P950,000
b. Net credit P450,000
c. Net debit P500,000
d. Net debit P860,000

Reference no: EM132226971

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