Reference no: EM132614189

The following information was obtained in connection with the audit of Kathereen Company's cash account as of December 31, 2019:

1. Cash balance per general ledger on December 31 was P37,500. The company recorded actual company collections amounting to P152,500 from its customers during December. Also, in December, the company recorded bank service charges of P2,500, including November bank service charges of P1,500. The December bank statement showed total deposits credited by the bank of P145,000 and total checks paid amounting to P133,750 and bank service charges of P3,250.
2. The outstanding checks on November 30 and December 31 were P16,250 and P12,500 respectively while deposit in transit on November 30 was P12,500.
3. The cash receipts book of December is under-footed by P2,500.
4. The bank erroneously charged the company's account for P3,750 check for another company. This bank error was corrected on January 2020.

Questions:

Based on the above data and the result of your audit, compute for the following:

Question 1. Book disbursements in December 2019:

a. 126,250 c. 128,750

b. 125,500 d. 129,750

Question 2. Deposit in transit, December 31, 2019:

a. 19,000 c. 22,000

b. 12,000 d. 20,000

Question 3. Adjusted cash in bank balance, December 31, 2019:

a. 26,500 c. 37,750

b. 37,500 d. 26,750

Question 4. How much is the unrecorded bank service charges as of December 31, 2019:

a. 1,250 c. 2,350

b. 3,250 d. 2,250

Question 5. Adjusted cash in bank balance, Nov. 30, 2019:

a. 18,500 c. 12,250

b. 14,750 d. 17,450