Information pertaining grace company appears below

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41.Information pertaining Grace Company appears below:Balance per bank statement July 316,200,000Balance per ledger, July 313,750,000Deposit of July 30 not recorded by bank1,400,000Debit memo - service charges50,000Credit memo – collection of not by bank for Grace1,500,000Outstanding checks?An analysis of the canceled checks returned with the bank statement reveals the following:Check for purchase of supplies was drawn for P300,000 but was recorded as P200,000.The management wrote a check for traveling expenses of P500,000 while out of town. The check was notrecorded.What is the amount of outstanding checks on July 31?a.4,600,000b. 2,500,000c. 2,800,000d. 3,000,000D6.2M – (3.75M -1.4M – 50,000 + 1.5M – 0.1M – 0.5M) = 3M
42.Unison Co. had the following account balances at December 31, 2003:Cash in banks2,250,000Cash on hand125,000Cash legally restricted for additions to plant(expected to be disbursed in 2005)1,000,000Cash in banks included P600,000 of compensating balance against short-term borrowingarrangements which is not legally restricted as to withdrawal by Unison.On the current assets section of Unison’s December 31, 2003 balance sheet, total cash should be
13-17.
You are provided the following information by the Cordial Company for the year ended December 31, 2010.The internal control procedures surrounding cash transactions were not adequate. Ethel Diaz, thebookkeeper-cashier, handles cash receipts, maintains accounting records, and prepares the monthlyreconciliations of the bank account.The bookkeeper-cashier prepared the following reconciliation at the end of the year:Balance per bank statementP350,000Add: Deposit in transitP175,250Note collected by bank15,000190,250BalanceP540,250Less: Outstanding checks246,750Balance per general ledgerP293,500In the process of your audit, you gathered the following:a.At December 31, 2010, the bank statement and the general ledger showed balances of P350,000 andP293,500.b.The cut-off bank statement showed a bank charge on January 2, 2011 for P30,000 representing a correctionof an erroneous hand credit.c.Included in the list of the outstanding checks were the following:A check payable to a supplier, dated December 29, 2010, in the amount of P14,750, released onJanuary 5, 2011A check representing advance payment to a supplier in the amount of P37,210, the date of which isJanuary 4, 2011.d.On December 31, 2010, the company received and recorded customer’s postdated check amounting toP50,.000.43.The adjusted deposit in transit as at December 31, 2010.

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Term
Spring
Professor
steve uydess

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