1-19.

(Pearl Corporation)

Balance per bank statement P400,000

Add receipts of 12/31/19 not yet deposited 100,000
Balance per bank statement before outstanding checks 500,000
Balance per books 387,000
Bank service charge for December (1,000)
Paid check for P40,000 recorded as P4,000 (36,000)
Customer’s check returned by bank marked DAIF (22,000) 328,000
Outstanding checks at December 31, 2019 172,000

Proof: Per bank Per books

Reported balances P400,000 P387,000
Receipts not yet deposited 100,000
December bank service charge (1,000)
Paid check for P40,000 recorded as P4,000 (36,000)
Customer’s check returned by bank (22,000)
Outstanding checks at December 31 (172,000)
Correct cash balance P328,000 P328,000