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    elsana philip
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    The document provides information about an account balance for Dawn Company as of December 31, 2015. It states that the checkbook balance was P4,000,000. However, it lists several cash items that need adjustment: a customer check for P200,000 was post-dated, a supplier check for P400,000 was recorded but not mailed until January, and a customer check for P500,000 deposited cleared later than the balance date.

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    The document provides information about an account balance for Dawn Company as of December 31, 2015. It states that the checkbook balance was P4,000,000. However, it lists several cash items that need adjustment: a customer check for P200,000 was post-dated, a supplier check for P400,000 was recorded but not mailed until January, and a customer check for P500,000 deposited cleared later than the balance date.

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    © All Rights Reserved
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    3 views2 pages

    Less Auditing Receivable

    Uploaded by

    elsana philip
    The document provides information about an account balance for Dawn Company as of December 31, 2015. It states that the checkbook balance was P4,000,000. However, it lists several cash items that need adjustment: a customer check for P200,000 was post-dated, a supplier check for P400,000 was recorded but not mailed until January, and a customer check for P500,000 deposited cleared later than the balance date.

    Copyright:

    © All Rights Reserved
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    of 2

    Less: Overdraft with Piggy Bank secured by a Chattel ( 300,000)

    Balance per ledger P1,650,000

    At what amount will the account “Cash” appear on the December 31, 2006 balance
    sheet?

    a. P1,425,000

    b. P1,495,000

    c. P1,315,000

    d. P1,725,000

    Solution: Answer (a)

    Current account with Real Bank P 900,000

    Undeposited collection 350,000

    Supplier's check for goods returned by the Corporation 60,000

    Unexpended petty cash 5,000

    Current account with Piggy Bank (P410,000 - P300,000) 110,000

    Total P1,425,000

    PROBLEM 1-2

    Dawn Company reported checkbook balance on December 31, 2015 at P4,000,000.


    Data about certain cash items follow:

    * A customer check amounting to P200,000 dated January 2, 2016 was included in the
    December 31, 2015 check book balance.

    * A P400,000 check payable to supplier date and recorded on December 30, 2015 was
    mailed on January 16, 2016.

    * Another customer check for P500,000 deposited on December 22, 2015 was included
    in the checkbook balance but returned by the bank for insufficiency of fund. This check
    was redeposited on December 26, 2015 and cleared two days after.

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