Reference no: EM132772484

On your examination of the financial statements of SKY Group Company for the year ended December 31, 2017 you obtained the following information on the checking account of the company:

• The bank statement on November 30, 2017 showed a balance of P15,300. Among the bank credits in November was a customer's note for P5,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were the cost of checkbooks amounting to P60 and a P2,000 check which was charged by the bank in error against SKY Group Co. Account. Also in November you ascertained that there were deposits in transit amounting to P4,000 and outstanding checks totaling P8,500.
• The bank statement for the month of December showed total credits of P20,800 and total charges of P10,200. Company books for December showed total receipts of P36,780 and disbursements of P20,360. Bank debit memos for December were: No. 418 for service charges, P80 and No. 504 on customer's returned check marked "Refer to Drawer" for P1,200.
• The bank error of P2,000 in November was corrected by the bank in December.
• On December 29, 2017 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 in January, 2018.
• A check for P198 was recorded in the company cash payments book in December as P1,980.

Problem 1: The Deposit in Transit, 12/31/2017 is ________ and the outstanding checks 12/31/2017 is __________