Reference no: EM133172196

Question - Your examination of the financial statements of GAEL Group Co. for the year ended December 31, 2007 you obtained the following information on the checking account of the company:

a. The bank statement on November 30, 2007 showed a balance of P15,300.

b. Among the bank credits in November was customer's note for P5,000 collected for the account of the company which the company recognized in December among its receipts.

c. Included in the bank debits in November was a cost of checkbooks amounting to P60.

d. A check for P2,000 issued by Gael Group Co. in November was charged by the bank in error against Gael Group Co. account.

e. You also ascertained that there were deposits in transit amounting to P4,000, and outstanding checks totaling P8,500 as of November 30, 2007.

f. The bank statement for the month of December showed total credits of P20,800 and total charges of P10,200.

g. Company books for December showed total receipts of P36,780 and disbursements of P20,360.

h. Bank debit memos for December were: No. 418 for service charges, P80 and No. 507 on a customer's returned checked marked Refer to Drawer for P1,200.

i. On December 29, 2007 the company placed with the bank a customer's promissory note with a face value of P6,000 for collection. The company treated this note as part of its receipts although the bank was able to collect on the note only in January, 2008.

j. A check for P198 was recorded in the company cash payments books in December as P1,980.

Required -

1. Determine the adjusted cash balance as of December 31, 2007.

2. Determine the unadjusted book balance November 30, 2007.

3. Determine the adjusted cash balance November 30, 2007.

4. Determine the deposit in transit as of December 31, 2007.

5. Determine the outstanding checks as of December 31, 2007.