14. The books of Hotsilog Service Inc. disclosed a cash balance of P48,757 on June 30. The bank statement as of June 30 showed a balance of P54,780. Additional information that might be useful in reconciling the two balances follows: a. Outstanding checks totaled P9,885 as of June 30. b. Deposit in transit totaled P13,425 as of June 30. С. There were bank service charges for June of P210 not yet recorded on the books. d. Hotsilog's account had been charged on June 26 for a customer's NSF check for P1,296. A bank memo stated that a customer's note for P9,000 and interest of P164 had been collected on е. June 27. f. Check payable to creditors for P3,000 was erroneously recorded on the books as P4,500. g. The deposit of June 24 was recorded on the books as P2,895, but it was actually a deposit of P2,700. h. Hotsilog's account had been credited by the bank for P600. This amount should have been credited to Langsilog. How much is the correct cash balance at the end of the month? A. 57,720 B. 57,270 C. 58,920 D. 58,290

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
14. The books of Hotsilog Service Inc. disclosed a cash balance of P48,757 on June 30. The bank statement as
of June 30 showed a balance of P54,780. Additional information that might be useful in reconciling the two
balances follows:
a. Outstanding checks totaled P9,885 as of June 30.
b. Deposit in transit totaled P13,425 as of June 30.
C.
There were bank service charges for June of P210 not yet recorded on the books.
d. Hotsilog's account had been charged on June 26 for a customer's NSF check for P1,296.
e. A bank memo stated that a customer's note for P9,000 and interest of P164 had been collected on
June 27.
f.
Check payable to creditors for P3,000 was erroneously recorded on the books as P4,500.
g. The deposit of June 24 was recorded on the books as P2,895, but it was actually a deposit of P2,700.
h. Hotsilog's account had been credited by the bank for P600. This amount should have been credited to
Langsilog.
How much is the correct cash balance at the end of the month?
A. 57,720
C. 58,920
B. 57,270
D. 58,290
Transcribed Image Text:14. The books of Hotsilog Service Inc. disclosed a cash balance of P48,757 on June 30. The bank statement as of June 30 showed a balance of P54,780. Additional information that might be useful in reconciling the two balances follows: a. Outstanding checks totaled P9,885 as of June 30. b. Deposit in transit totaled P13,425 as of June 30. C. There were bank service charges for June of P210 not yet recorded on the books. d. Hotsilog's account had been charged on June 26 for a customer's NSF check for P1,296. e. A bank memo stated that a customer's note for P9,000 and interest of P164 had been collected on June 27. f. Check payable to creditors for P3,000 was erroneously recorded on the books as P4,500. g. The deposit of June 24 was recorded on the books as P2,895, but it was actually a deposit of P2,700. h. Hotsilog's account had been credited by the bank for P600. This amount should have been credited to Langsilog. How much is the correct cash balance at the end of the month? A. 57,720 C. 58,920 B. 57,270 D. 58,290
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education