What is the total amount of cash should Targaryen Company report at year-end? The cash in bank

 What is the total amount of cash should Targaryen Company report at year-end?

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The cash in bank account of Targaryen Company disclosed a balance of P201, 000 as of December 31. The bank statement as of December 31 showed a balance of P106,000. Upon comparing the bank statement with cash records, the following facts were developed. a. The company's account was charged on December 26 for a customer's uncollectible check amounting to P30,000. b. A two-month, 17% P60,000 customer's note dated October 25, discounted on November 25, was dishonored on December 25, and the bank charged the company P62,000, which included a protest fee of P2,000. c. A customer's check for P15, 400 was entered as P14,500 by both the depositor and the bank but was later corrected by the bank. d. Check No. 1 142 for P12,425 was entered in the cash disbursement journal at P12,245 and check no. 156 for P3,290 was entered as P32,900. e. Bank service charges of P1,830 for December were not yet recorded on the books. f. A bank memo stated that a customer's note for P25,000 and interest of P1,000 had been collected on December 28; and the bank charged P500. (No entry was made on the books when the note was sent to the bank for collection). g. Receipts on December 31 for P24,000 were deposited on January 2 h. The following checks were outstanding on Dec. 31: No 123 P3,000 No P4,000 143 2.000 6,000 144 159 7,000 147 169 5,000 i. A deposit of P20,000 was recorded by the bank on December 5, but it should have been recorded for Jarrgaryeen Company rather than Targaryen Company Petty cash of P10,000 was included in the Cash in Bank balance. Proceed from cash sales of P60,000 for December 18 were stolen. The company j. k. 7.000 3,000 154 157 expects to recover this amount from the insurance company. The cash receipts were recorded in the books, but no entry was made for the loss. 1. The December 21 deposit included a check for P20,000 that had been returned on December 15 marked NSF. Targaryen Company had made no entry upon return of the check. The redeposit of the check on December 21 was recorded in the cash receipts journal of Targaryen Company as a collection on account. The cash in bank account of Targaryen Company disclosed a balance of P201, 000 as of December 31. The bank statement as of December 31 showed a balance of P106,000. Upon comparing the bank statement with cash records, the following facts were developed. a. The company's account was charged on December 26 for a customer's uncollectible check amounting to P30,000. b. A two-month, 17% P60,000 customer's note dated October 25, discounted on November 25, was dishonored on December 25, and the bank charged the company P62,000, which included a protest fee of P2,000. c. A customer's check for P15, 400 was entered as P14,500 by both the depositor and the bank but was later corrected by the bank. d. Check No. 1 142 for P12,425 was entered in the cash disbursement journal at P12,245 and check no. 156 for P3,290 was entered as P32,900. e. Bank service charges of P1,830 for December were not yet recorded on the books. f. A bank memo stated that a customer's note for P25,000 and interest of P1,000 had been collected on December 28; and the bank charged P500. (No entry was made on the books when the note was sent to the bank for collection). g. Receipts on December 31 for P24,000 were deposited on January 2 h. The following checks were outstanding on Dec. 31: No 123 P3,000 No P4,000 143 2.000 6,000 144 159 7,000 147 169 5,000 i. A deposit of P20,000 was recorded by the bank on December 5, but it should have been recorded for Jarrgaryeen Company rather than Targaryen Company Petty cash of P10,000 was included in the Cash in Bank balance. Proceed from cash sales of P60,000 for December 18 were stolen. The company j. k. 7.000 3,000 154 157 expects to recover this amount from the insurance company. The cash receipts were recorded in the books, but no entry was made for the loss. 1. The December 21 deposit included a check for P20,000 that had been returned on December 15 marked NSF. Targaryen Company had made no entry upon return of the check. The redeposit of the check on December 21 was recorded in the cash receipts journal of Targaryen Company as a collection on account.

Answer rating: 100% (QA)

To determine the total amount of cash that Targaryen Company should report at yearend we need to analyze the given facts and make the necessary adjustments to the cash balance Starting cash balance as ... View the full answer