Required:P A. Proof of cash statement B. Adjusting journal entries

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PROOF OF CASH PROBLEM

Pacho Enterprises has the following information about cash account

Bank balance, beginning ( 11,500.00)

Bank receipts ( 125,000.00)

Bank wihdrawal ( 50,000.00)

Book balance, beginning ( 9,000.00)

Deposit in transits last month ( 2,000.00)

Deposit in transits this month ( 4,500.00)

Total collections during the month ( 32,500.00)

Total disbursements during the month ( 49,900.00)

Uncleared checks last month ( 5,000.00)

Uncleared checks this month ( 7,500.00)

Additional information

1 Macho check was debited to our bank account ( 6,600.00)

2 The bank debited our account as service charge for the month ( 1,000.00)

3 Last month bank services charged were not adjusted ( 500.00)

4 Bank credited the loan proceeds net of P5000 as interest ( 95,000.00)

5 The company owned check was returned due to last of signature ( 5,000.00)

 

Required:P

A. Proof of cash statement

B. Adjusting journal entries

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