Charlene Company's cash ledger on June 30, 2014 showed a balance of P936, 000 which includetotal deposits
Question:
Charlene Company's cash ledger on June 30, 2014 showed a balance of P936, 000 which includetotal deposits of P490, 000Your audit of the cash account revealed the following:
Outstanding checks amounted to P29, 000 while deposit in transit totalled P98, 000.
NSF checks of P56, 000 had been returned by the bank and were not yet reflected in the books ofthe company.
Total debits in the bank statement for June amounted to P398, 000 which included the NSFchecks in letter II above, and service fees of P10, 000.
The services were recorded in theconpany's books in the succeeding month.Sandy Company's check of P15, 000 was charged by the bank to Charlene company's account.
A check of P90, 000 is issued by Charlene company was recorded in its books as P120, 000.Charlene company's cash ledger on June 30, 2014 showed a balance of P936, 000 which include total deposits of P490, 000.
Required: Based on the results of your audit, determine the following:
What is the adjusted cash balance on June 30, 2014?
What is the cash balance per bank statement on June 30, 2014?
What is the shortage or overage on June 30, 2014?
What is the correct total debit in the reconciliation for the bank side on June 30, 2014?
What is the total credit adjustment on the Company's cash records on June 30, 2014
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak