Reference no: EM132774664

The bank statement on May 31, 2020 showed a balance of P1,836,000. In the course of your audit of the cash in bank account of Pira Co., you obtained the following information:

• Among the bank credits in May was customer's note for P600,000 collected for the account of the company which the company recognized in June among its receipts.
• Included in the bank debits for the month of May were cost of service charges amounting to P7,200 and a P240,000 check which was charged by the bank in error against Pira's account.
• You also ascertained that there were deposits in transit amounting to P480,000 and outstanding checks totaling P1,020,000 by the end of May.
• The bank statement for the month of June showed total credits of P2,496,000 and total charges of P1,224,000.
• The company's books for June showed total debits of P4,818,600, total credits of P2,443,200 and a balance of P2,913,600.
• Bank debit memos for June were: No. 121 for service charges, P9,600 and No. 122 on a customer's returned check marked "Refer to Drawer" for P144,000.
• On June 30, 2020, the company placed with the bank a customer's promissory note with a face value of P720,000 for collection. The company treated this note as part of its receipts although the bank was able to collect on the note only in July 2020.
• A disbursement check of P45,000 was recorded by the company as P450,000 in the month of May. This error was corrected in the books in June.
• Another check for P23,760 was recorded in the company cash payments books in June as P237,600.

Problem 1. How much is the unadjusted cash balance per books as of May 30, 2020?

Problem 2. How much is the cash shortage/overage on May 30, 2020?

Problem 3. What is the correct deposit in transit as of June 30, 2020?

Problem 4. What is the correct outstanding checks as of June 30, 2020?

Problem 5. How much is the adjusted cash balance as of June 30, 2020?