Reference no: EM133009810

Letty Company provided the bank statement for the month of April which included the following information:

Bank service charge for April - 15,000;

Check deposited by Letty during April was not collectible and has been marked "NSF" by the bank and returned - 40,000;

In comparing the bank statement to its own records, the entity found the following:

Deposits made but not yet recorded by bank - 130,000;

Checks written and mailed but not yet recorded by bank - 100,000.

All deposits in transit and outstanding checks have been properly recorded in the entity's books. A customer check for P35,000 payable to Letty Company had not yet been deposited and had not been recorded by the entity. The cash in bank account balance per ledger is P920,000.

Problem 1: What is the adjusted cash in bank on April 30?

a. 930,000
b. 865,000
c. 900,000
d. 965,000