Question

TMG Company provided the following data relating to the cash transactions and bank account for the month of July:

Cash balance per ledger	?
Cash balance per bank statement	?
Debit memo for July service charge	5,000
Deposit of July 31 not recorded by bank until August 1	450,000
Outstanding checks, including certified check of 50,000	750,000
Proceeds of bank loan not recorded in ledger	500,000
Proceeds from customer note, face 400,000, collected by bank, collection fee of 15,000	435,000
A creditor check had been entered in the book as 20,000 and was erroneously deducted by bank at	200,000
A customer check was returned by bank marked DAIF	50,000
Correct cash balance	3,000,000

Please show computations/explanation.

1. What was the cash balance per ledger?

a. 2,120,000

b. 3,055,000

c. 2,555,000

d. 2,065,000

2. What is the cash balance per bank statement?

a. 3,700,000

b. 3,070,000

c. 3,050,000

d. 2,370,000