Reference no: EM132713273

The bank statement for the current account of CPA Co. showed a December 31, 2019, balance of P585, 284. Information that might be useful in preparing a bank reconciliation is as follows:

a) Outstanding checks were P52.810

b) The December 31, 2018, cash receipts of P23, 000 were not deposited in the bank until January 2, 2013.

c) One check written in payment of rent P8, 940 was correctly recorded by the bank but was recorded by CPA Co as a P9, 840 disbursement.

d) In accordance with prior authorization, the bank withdrew P18,000 directly from the current account as payment on a mortgage note payable. The interest portion of that payment was P14,000. CPA Co has made no entry to record the automatic payment.

e) Bank service charges of P740 were listed on the bank statement.

f) A deposit of P35,000 was recorded by the bank on December 12, but he it did not belong to CPA Co.

g) The bank statement included a charge of P3,400 for a not-sufficient- fund check. The company will seek payment from the customer.

h) CPA Co. maintains an P8, 000 petty cash fund that was appropriately reimbursed at the end of December.

i) According to instructions from CPA Co. on December 30, the bank withdrew P40, 000 from the account and purchased Treasury bills for CPA Co. The company recorded the transaction in its books on December 31 when it received notice from the bank. Half of the treasury bills mature in three months and the other half in six months.

Problem a. What is the cash in bank balance per books on December 31, 2019?

Problem b. What is the adjusted cash in bank balance on December 31, 2019?

Problem c. What amount would CPA Co. report as cash and cash equivalents in the current asset section of the December 31, 2019, statement of financial position?