Barbara Companys newly hired assistant prepared the following bank

reconciliation on December 31, 2014:

Book balance
Add: December 31 deposit in
transit
Collection of note
Interest on note
Total
Less: Jonathan Companys
deposit to our account
Bank service charge
Adjusted book balance

P2,810,000
P1,500,00
0
5,000,000
300,000
2,200,000
90,000

Bank balance
Add: Error on check No. 174
Total
Less: Preauthorized payments
for water bills
NSF check
Outstanding check
Adjusted bank balance

6,800,000
9,610,000
2,290,000
P7,320,000
P11,260,00
0
9,000
11,269,000

P 248,000
440,000
3,219,000

3,907,000
P7,362,000

Check No. 174 was made for the proper amount P489,000 in payment of account.
However it was entered in the cash payments journal as P498,000. Barbara
authorized the bank to automatically pay its water bill as submitted directly to the
bank.
Based on the above and the result of your audit, the correct cash in bank balance as
of December 31, 2014 is
a. P7,320,000
c. P7,341,000
b. P7,362,000
d. P9,541,000