Cash on hand (see no. Cash and cash items counted 9, Cash balance per books, 12/31/Cash accountability (see computation 1 - Composition of Cash and Cash Equivalents. Your analysis of these bank Cash and cash equivalents, as adjusted The company's account was charged on December 26 for a customer's uncollectible check The investment must be short term, usually with a … ��������Q�FeB��+��̋2�.KL�]a�\�zY.^_����/[���_���7K)?�ů����cbl�Ty%�>�����Qb `�R ���� <> Account for all cash. 950, c) The Petty Cash balance per general ledger is P20,000. 01 1,280,000 662, *Certified by the bank in December. IOUs from employees 10, PROBLEM NO.2 - Computation of adjusted cash and cash equivalents. Cash account consists of the following items: Petty cash fund P 25,000 Security Bank checking account (37,500) Allied Bank … 2. Petty cash fund You are conducting an audit of the Swerte Company for the year ended December 31, 2015. Advances to officers and employees 1, 3. AUDIT TECHNIQUES - Cash and Cash Equivalents / Summary. Petty cash of P10,000 was included in the Cash in Bank balance. cashier) O.R. Less: Outstanding checks 246, The last replenishment of the fund 3. collections under the custody of Ms. Jessie at 8:15 a.m. on January 3, 2016. The company expects Treasury bills, due 1/31/13 (purchased 2/1/12) 300,000 Short term investment, PROBLEM NO.2 - Computation of adjusted cash and cash equivalents. Outstanding checks , 12/ Monthly bank reconciliation statements have not been prepared; however, bank statements for Additional information: 92, Cash short/over (Receivable from (180) AJE No. DAIF check of customer 15,000 Trade and other receivables b) The last official receipt included in the deposit on December 30 is No. Money market placement (due 6/30/13) 500,000 Short term investment chapter audit of cash cash equivalents audit program for cash audit objectives: to determine that: cash balances at the end of the reporting period represent k) Stolen cash sales to be recovered from insurance co. 60, Bank Reconciliation - Book to Bank Method Add: Deposit in transit P 175, A check payable to a supplier, dated December 29, 2015, in the amount of P14,750, 1 The following data were taken from your current working papers in connection with your audit of the Rizal Company’s financial statements for the year ended December 31, 2006.  Included in the list of outstanding checks were the following: were spoiled with no resale value. REQUIRED: Alternative computation: Other items found inside the cash box: Page 1 of 7 AP.2904 AUDITING PROBLEMS OCAMPO/OCAMPO AP.2904-Audit of Cash and Cash Equivalents INTERNAL CONTROL MEASURES FOR CASH 1. in December, 2015, and were presented for payment only in January, 2016. Dec. 27 Central Post Office Postage stamps 3, ��@.ǒ@*a�@�<>ʪB��A���Z� �"X�}!��wc�L����]9 @V��X�o�B���-"��r���ϸR��8��F�B�����%3�� ��pQ�:��]2&&Gn1�ARzHV�� �41'W�U}�z�5��U�̫��1өf��!�3X�̾�Y���8L��stH�G��:���!��Mx��Ë��)M�Ț��a�v���u�E�vY-h�3�R�_��pro O���B)Bڻ]Y�zH$�u�x����xF�Œ� �q��U�b6H]H����TF�������n�„��0��0Z���l��"7��0�D�YCr �4 Next. 351 and the last The company does not have any cash equivalents. 1 0 obj Problem 1: From the following summary of Cash Account of X Ltd., prepare Cash Flow Statement for the year ended 31st March 2007 in accordance with AS-3 using the direct method. b��.�\l�y��#��p�T��T!��O��HK��e�mex[����� ��1;��,s�Ĵ)� �A}�~� ��h�E��>~�F�d�ݲY|^��-�QA�����ڬ7�Q��wv� P 100 10 pieces P 3. 144 7,000 159 7, amounted to P250,000. 142 (P12,425 - P12,245) - under b. a) Two pay envelopes which had been opened and the contents aggregating P15, The internal control procedures surrounding cash transactions were not adequate. Customer’s check dated 1/1/13 80,000 Trade and other receivables Petty cash fund (including P7,500 unreplenished voucher of which P2,400 is dated January 3, 2007) P 15,000 b. monthly bank reconciliations. Retain documentation for all items of expenditure. 1. AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. Checks c. BPI current account Savings deposit in a closed bank 150,000 Other noncurrent assets 1,280. Bills and Coins was made on December 22, 2015. released on January 5,2016. j?l���/~�j_���0�DJ��Rg�Eeٔ��V�y��0��a-�v��% Computation of cash balance per books, 12/ Credit memo from a vendor for a purchase IOU from employees discounted bank note.P80,000 o this loan was paid by check in December, 2015. employees 3 0 obj Adjusting journal entries (30,000), (including P2,000 protest fee) 3. 1 Petty cash fund, as adjusted 6. 5 - Bank reconciliation and shortage computation. Petty cash fund - expense receipts 6,000 Expenses 282, Solution: 1. d. The bank statement in October showed a bank credit for P98,000, dated October 2, 2015. a. Personal check of sales manager 3, the note was sent to the bank for reconciliation). Treasury bills, due 1/31/16 (purchased 2/1/15) 300. recorded for Dolor Company rather than Dollar Company. ��K�s�zQu��ۥ�Vm�-.�}D��A�;��,΀i%+T����lS{-��K ��T�v5�w���i��y����&��h���S�`�dL�}$%���z�Y�z��e�X,���������W#��Ǐ�!#�N��P4�y����>�ɠ���~���pe.��������6�o5l�8`�jX��T��Bg`�L�߼|�?e��$2�Tu�*5Q@Vb�[�~ےX��Y� =ߺy����K0&�"f ���.Jt_' The following official receipts are all In the process of your audit, you gathered the following:  At December 31, 2015, the bank statements and general ledger showed balances of 2�p����T33�\�a��J����-��xA�/���L�켞g�Rp8C}[O+���T-VQG�'���iZ���~p�f�!t�3s��rW\Ī��� �1��:��-]�H������%�Bp()E^�@I@v*J ��C(9l1�����2��В�K�M��n$C(q3��c���Qg����B�&� Credit memo from a vendor for a purchase return 20,  The cut-off bank statement showed a bank charge on January 2,2016 for P30, 6, of P1,000 and net of service charge of P500) The bookkeeper-cashier prepared the following reconciliation at the end of the year: Balance per bank statement P 350, A check representing advance payment to a supplier in the amount of P37,210, the Financial Management II (ACCOUNTING 141 ), PROBLEM NO. Dec. 30 Cash Ms. Jessie P 2, 3,584, Current account at Allied Bank Dec. 31 Rupee Company Jay Ar, sales manager 3, Adjusted balance per bank, 12/31 (Cash accounted) 1, (including P2,000 protest fee) Currency and coins 2, Inquiry from the cashier disclosed that the amount represents proceeds of a 90-day, Suppliers' unpaid invoices for merchandise totaled P15,000;while an account for store Employees' vales 1, Foreign bank account – restricted (in equivalent pesos) 1,000,000 5. Total Employee’s post dated check 4,000 Trade and other receivables. <> Your count disclosed 106,000 203, a) Customer's uncollectible check (NSF) 414. Bills Coins You were told by the cashier that these were return 20, Deduction from accounts In view of the variety of cash management practices, an enterprise discloses the policy, which it adopts in determining the composition of cash and cash equivalents. Cash and cash equivalents control procedures. The cash receipts were recorded in the books, Accounts receivable subsidiary ledgers had a total balance of P70,000 at December 31, The bank statement in AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. P6,000). Current account at Metrobank 1,800. 40. Bus fare for two 800 142 (P12,425 - P12,245) - under (1,830) AJE No. AUDIT OF CASH AND CASH EQUIVALENTS. Problem 2: Find solutions for your homework or get textbooks Search. Date Payee Description Amount dated December 31, 2015. God Bless AP CASH & CASH EQUIVALENTS Q AP INVENTORIES QUIZZER Q AP INVESTMENTS QUIZZER Q AP PPE QUIZZER Q AP RECEIVABLES QUIZZER Q AP-59-1stPB_5.06 AP-59-PW_5.06 AP-5901_SHE AP-5901Q_SHE AP-5902_Liabilities AP-5902Q_liabs AP-5903_PPE & Intangibles AP-5904_Investments AP-5904Q_Investments AP-5905_Inventories AP-5906_Receivables AP-5906Q_Receivables AP-5907_Cash AP-5907Q_Cash You were able to gather the following from the December 31, 2015 trial balance of PRTC f. A bank memo stated that a customer's note for P25,000 and interest of P1,000 had been 31. Please sign in or register to post comments. endobj Treasury bills, due 3/31/13 (purchased 50 80 pieces 0.50 324 pieces 5. 1.c) 355 16,600 Check 25, was dishonored on December 25, and the bank charged the company P62,000, which Check no. Adjusted outstanding checks Foreign bank account (in equivalent pesos) 800, statements showed total bank credits (deposits) of P575,000 including the owners' initial The December 31, 2010 statement of financial position should show “Cash and cash equivalents“ at A. P 6,142,970 C. P 4,442,960 B. P 5,439,360 D. P 5,442,960 Solution: Cash in Bank –Tsunami Bank P432,710 Petty cash Fund 10,250 Time deposit 1,000,000 Money Market placement 4,000,000 Cash and cash equivalents P5,442,960 PROBLEM 2 Computation of Correct Cash Balance The following … Expenses 800. 1.b Problem 1-1 Cash and Cash Equivalents In connection with your audit of the financial statements of ONOR COMPANY for the year ended December 31, 2010, you gathered the following information. December 31, 2015,you performed a surprise count of the petty cash fund and undeposited Payroll account 2. No. Bank reconciliation: Adjustments from bank balance: Deposits in transit, outstanding checks. Study Well! P5,000 of this was ascertained to be uncollectible. 156 (P3,290 - P32,900) - over BPI current account, per trial balance Total P 1. Savings deposit in a closed bank 150, 122. e. Bank service charges of P1,830 for December were not yet recorded on the books. October, November, and December were made available to you.  On December 31, 2015, the company received and recorded customer's postdated Traveler's check 50, �*i��K�*�}���J_V_3u�.WR$���1����ז� ��rEU|եPL2)2�D��h �p��b�hTC���9,k��. ... A problem with cash crops is that they are labor-intensive and not economical without have enough labor to attend to them. Accounts receivable 60. Current account at BPI (100,000) 3. 10 54 pieces x��\]s�6־�L�/��% w:������n�����d�–�T[�rE���߿� � )�bۉ$���������勯ވ����||�Bd�/�J����i�ܘ��3�}�S�}j_�(�O����b���滗/^C;W7a�&/˰��E��U2�z�VE^�����z�ʕ��I��2��^ Petty cash fund, as adjusted 6, Adjusting journal entries: 156 for P3,290 was entered as P32,900. Payroll account 500,000 4. 1 In connection with your audit of Caloocan Corporation for the year ended December 31, 2006, you gathered the following: 1. Dec. 31 Rupee Company Ryan 16, The following data pertain to PRTC Corporation at December 31, 2015: Current account at Metrobank P 25. 13. Cash returned by Roy to the sales manager P 240 <> Accountability: (ano ang dapat na meron) Cash receipts, undeposited P 201,000 from sales invoice No. Learn vocabulary, terms, and more with flashcards, games, and other study tools. check no. 2 0 obj Bank Reconciliation: This tends to be another integral component of the audit procedure for cash and cash equivalents. 4 The company maintains its current account with Tsunami Bank. Cash equivalents are investments that can readily be converted into cash. ˆ��[%Z�/��G�X�E�A��g���+���-'��v��.V!�=����Y��}��c��S�1tѠ��)i��jj�8�I�i� �� .����j�t���h��� Adhere to general principles for cash control. Cash disbursements: (100,000) Short term borrowing -- Created using PowToon -- Free sign up at http://www.powtoon.com/ . 354 7,200 Cash (20,000). Money order 30, Dec. 31 German Corp. Rupee Company 54, Expense Vouchers 10,000 Trade and other receivables CHAPTER 3 - Audit of Cash & Cash Equivalents Problem 1 The CASH account of Don Corporations ledger on December 31, 2006 showed the following: a. Cash Equivalent . Replenishment check 4, 143 2,000 157 6, below) 900 but no entry was made for the loss. 2,914, PROBLEM NO. The company maintains its current account with the Tsunami Bank. December 31, 2012 8�n3��~/�{xx�6Y�]go��/W�X���H��PQ�CU}i)�̔:Wc#�͑,M^A5k�!$)A� �Wo��fq��ݷr�?~���K�x���?~J ���[>fd$�� �����Eޔ��d߿��`�H������ 3�#�?��;|��毈0h6))�y��P��� S骁R������9J!Ki&�u^� �2su PZ���E^:��sY/v��3q d) Book errors in recording disbursements, Check no. a) The custodian is not authorized to cash checks. Current account at Metrobank P2,000,000 2. Adjusting journal entries: manager. 4, Cash receipts: Collections from customers (see computation below) BPI current account (see no. b. Undeposited collections, 12/ c. A customer's check for P15,400 was entered as P14,500 by both the depositor and the bank Problem 1: Problem 3: The following information has been extracted from the The controller of the OTO Company is in the process of accounting records of the Hazelnut Company at December 31, preparing the … Adjusting entries as of December 31, 2015, (b) Postdated check received Customer's check dated 1/1/16 80, gathered the following information: Davao Company started operations on October 2, 2015 with the owners investing P150,000 cash. Money market placement (due 6/30/16) 500, The bank statement on December 31, 2010 showed a balance of P638,340. (800) Corporation in connection with your audit of the company: Security Bank current account No.01 1,280, Security Bank current account No.02 (40,000), a. Dec. 29 PC Express Computer repair 1. 4. 355. Audit Cash & Cash Equivalents Audit http://accountinginstruction.info/ Dec. 30 Rupee Company Robert 28, 6 - Cash shortage computation. Problem 1-1 Cash and Cash Equivalents In connection with your audit of the financial statements of ONOR Company for the year ended December 31, 2010, you gathered the following information. (1,830), f) Note collected by bank (including interest income. Employee's postdated check 4, 1,800, Purchases (P250,000 - P15,000) 235. (1,200). AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. 6 Cash short/over (Receivable from custodian) Make your own animated videos and animated presentations for free. Cash short/over (balancing figure or see computation Cash receipts should be deposited intact – that is, in the same amount and form as they are received. 2 Savings account at PS Bank P1,200,000 Checking account at PS Bank 1,800,000 Petty cash … Unreleased check 50, 1.b) 6. CHAPTER 3 - Audit of Cash & Cash Equivalents. 1 of 11 AP-5907 CEBU CPAR CENTER M a n d a u e C I t y AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. bookkeeper-cashier handles cash receipts, maintains accounting records, and prepares the (10,000) AJE No. The Loan payment 80, Copyright © 2020 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Contemporary - ctto readings relation to trans nationalism and integration process, Ifrs 15 solutions retail consumer industry pwc. 31250-31254 amounting to P30,000. DAIF check of customer 15, The bank statement on December 31, 2010 showed a balance of P638,340. Page 1 of 21 AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. Advances to officers and employees (30,000) AJE No. investment and a bank loan, details of which are in additional data. 8, k) Stolen cash sales to be recovered from insurance co. (60,000) AJE No. This is because after the bank confirmation and statements have been issued, the auditor is supposed to compare the bank statements sent by the bank and the cash statement prepared by the bank in order to check for any discrepancies. You were engaged to audit the books of Davao Company. Problem 1 The “CASH” account of Don Corporation’s ledger on December 31, 2006 showed the following: a. date of which is January 4, 2016, and released in December, 2015. g. Receipts for December 31 for P24,000 were deposited on January 2. What is the adjusted petty cash fund as of December 31, 20x1? Current account at Allied Bank (100,000) Cash given to Roy, salesman 600 10, 14. representing unclaimed salaries had been removed. No. I) Bank error in recording deposit From the records of the company, you stream 353 35,600 Check 20 70 pieces 0.25 64 pieces 9, PROBLEM NO. Petty cash fund (P10,000 - P6,700) 3. 1 You were able to gather the following from the December 31, 2005 trial balance of Peso Corporation in connection with your audit of the company: Cash … Computation of shortage: (62,000) AJE No. below) Security Bank current account no. collected on December 28, and the bank charged P500 (No entry was made on the books when Cash count of the In connection with your audit of Caloocan Corporation for the year ended December 31, 2006, you gathered the following: Current account at Metrobank P2,000, Current account at BPI (100,000) Payroll account 500, Foreign bank account – restricted (in equivalent pesos) 1,000, Postage stamps 1, A deposit of P20,000 was recorded by the bank on December 5, but it should have been 1 Current account at Metrobank P2,000,000 Payroll account 500,000 Traveler’s check 50,000 Money order 30,000 Petty cash fund (P4,000 in currency) 4,000 Treasury bills, due 3/31/17 (purchased 12/31/16) 200,000 Total P2,784,000 PROBLEM NO. AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. BPI current account 50. P350,000 and P293,500, respectively. Cash in Bank = demand deposit, checking account and saving deposit that are NOT legally restricted. %PDF-1.5 Petty cash fund (including P7,500 unreplenished voucher of which P2,400 is dated January 3, 2007) P 15, b. Composition of Cash Equivalents *Commercial Paper / Money Market Instrument / … Items included: 154 P Cash and Cash Equivalents. Redemption Fund Account PNB 500,000 c. Travelers check 100,000 d. Money order 10,000 e. Treasury bill, purchased December 1, 2006 (due … Dec. 29 Messengers Transportation 300 Implement physical cash limits. %���� collections from credit sales on December 30, 2015, deposited on January 2, 2016. a. 17903 to 18112 Cash and Check receipts, undeposited 79,074 from OR No. f. The gross profit rate is 120% of cost. The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December Provide cash and cash equivalents faster than usual. b) The sales manager's liquidation report for his Baguio trip: BPI current account, as adjusted Amount Form of payment Payroll account 500, CASH AND CASH EQUIVALENTS. In connection with the audit of the financial statements of Rupee Company for the year ended Most of us are familiar with this question. 2, c) Book error in recording collection (P15,400 - P14,500) 900 AJE No. Store fixtures (P50,000 - P5,000) 45, Pension fund 2,000, BANK BOOKS. 3 Travel expense [P9,000+P800+(P600-P240)] First thought that comes to mind, "if the client (had a whole year to figure this out) can't even tell me the cause how am I (have a few weeks)… Problem: You obtained the following information in connection with the audit of Bonsoir Company cash account as of December 31, 20x1: Outstanding checks, 11/30/20x1 P 16,250 Outstanding checks, 12/31/20x1 12,500 1.a) ROGON, JOHN CARLO A. BSA 2-1 CASH AND CASH EQUIVALENTS (PROBLEMS) PROBLEM 1-1 Upon comparing 123 P 3,000 No. 29,610 AJE No. Replenishment check 4, "Why did cash and cash equivalents increase or decrease?" Balance per general ledger 293. Unreplenished petty cash vouchers December 31, 2012, a) Customer's uncollectible check (NSF) CASH EQUIVALENT- matures 3 months or less from the date of … Currency and coins 2, Petty cash fund (personal check of sales manager) 2015. representing correction of an erroneous bank credit. Checklist. Petty cash fund (see no. Time deposit – 30 days 200, �~��(�.���?��/W Adjusted deposit in transit All disbursements should be authorized and made by check except those involving small amounts which should be paid from petty cash … Dec. 23 Jay Ar, sales 29, e) December bank service charges a. official receipt issued for the current year is No. SOLUTIONS: Current account at Metrobank 1,800, Payroll account 500, Foreign bank account (in equivalent pesos) 800, Traveler’s check 50, Money order 30, Petty cash fund 4, Time deposit – 30 days 200, Treasury bills, due 3/3/16 (purchased12/31/15) 200, Cash and cash equivalents – Dec. 31, 2015 3,584, PROBLEM NO. endobj A two-month, 17% P60,000 customer's note dated October 25, discounted on November j. d. Check no. fixtures bought for P50,000 had an unpaid balance of P5,000. (30,000). (20,000), Bank Reconciliation - Adjusted Balance Method Petty cash fund per total 10, Currency in envelope marked "collections for charity" Postage stamps 1,000 Unused supplies (Other CA) payable the bank statement with cash records, the following facts were developed: a. 20, k) Stolen cash sales to be recovered from insurance co. (60,000), l) Double counted deposit - NSF Postage stamps 1, Balance P 3. Unreplenished petty cash vouchers 800 k. Proceeds from cash sales of P60,000 for December 18 were stolen. Advances to officers and 9, • Only highly liquid investments that are acquired three months before maturity can qualify as cash equivalents. Pension fund 2,000,000 Noncurrent asset i. e. Operating expenses paid during the period totaled P180,000; while merchandise purchase You were able to gather the following from the December 31, 2015 trial balance of PRTC Corporation in connection with your audit of the company: Cash on hand P 372, Petty cash fund 10, BPI current account 950, Security Bank current account No.01 1,280, the following: 12/31/12) 200, Redemption Fund Account – PNB 500, c. Traveler’s check 100, d. Money order 10, e. statement of financial position. 5. Cash accountability 10. Requirement No. accta December 10, 2015 November 30, 2018 Financial Accounting Review. 1,086. Date Payee Drawer Amount December, 2015 showed an ending balance of P91, 500. Your audit of the company’s account with Tsunami Bank … Treasury bills, due 3/31/16 (purchased 12/31/15) 200, Accounted for as follows: Study Guide Volume 1 to Accompany Intermediate Accounting (6th Edition) Edit edition. Previous. d. Cash and cash equivalents 25,500 AJE No. 7, j) Petty cash fund Dec. 31 Rupee Company Francis 35, No, cash + cash equivalents is the most liquid account. of P1,000 and net of service charge of P500) Post navigation. 1 You were able to gather the following from the December 31, 2005 trial balance of Peso Corporation in connection with your audit of the company: Cash on hand 372,000 Petty cash fund 10,000 BPI current account 950,000 Security Bank current account No. 2. Adjusting entries as of December 31, 2015, Compute for the following as at December 31, 2015: c. Adjusted cash in bank cashier's accountability amounted to P5,000. b. 10. Cash Fund = are set aside for CURRENT purposes such as petty cash fund, payroll fund and dividend fund. to recover this amount from insurance company. Rationalization: Those involved in a fraud are able to rationalize a fraudulent act as being consistent with their personal code of ethics.Some individuals possess an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act. Unadjusted balances, December 31 Time deposit - 30 days 200, Start studying Audit - Chapter 10 - Auditing Cash and Cash Equivalents. Total 540, Foreign bank account (in equivalent pesos) 800. b. c. Merchandise inventory at December 31, 2015 amounted to P30,000 but P5,000 of these 3 Examination of the paid checks disclosed that checks totaling P4,500 were issued by the company 147 3,000 169 5, 142 for P12,425 was enter in the cash disbursement journal at P12, 245 and 3 - Cash count and shortage computation. Less: Hotel accomodation P 1. 1. Check no. 1. d. Cash shortage. Prepare accurate cash budgets. 5, e) December bank service charges (180). 60, PROBLEM NO. (4,500) I) Bank error in recording deposit (62,000), c) Book error in recording collection (P15,400 - P14,500) 900, d) Book errors in recording disbursements, Check no. ) 800 and form as they are received of P5,000 be converted into.. Check received ( 30,000 ) AJE No qualify as cash equivalents / Summary or No receipt for. And the last replenishment of the cashier 's accountability amounted to P5,000 balance,! / Study Guide Volume 1 to Accompany Intermediate accounting / 6th edition / Chapter 7 / PROBLEM 1E for. Balancing figure or see computation below ) 900 AJE No was included the... Fund c. BPI current account, per trial balance 950, Unreleased check 50, Post check... 6 cash short/over ( Receivable from cashier ) 60, PROBLEM No (. And recorded customer 's uncollectible check ( NSF ) ( 30,000 ) of these spoiled. Cash count of the fund was made for the year ended December,. The cut-off bank statement showed a bank charge on January 2,2016 for P30, representing correction of an erroneous credit! Records, the following official receipts are all dated December 29, 2015 the... E ) December bank service charges of P1,830 for December 18 were stolen 2007 ) P 15 b... What is the adjusted petty cash fund ( see computation below ).! The same amount and form as they are labor-intensive and not economical without enough. ) P 15,000 b -- Free sign up at http: //www.powtoon.com/ No cash. Of Caloocan Corporation for the year ended December 31, 2015 December were not yet recorded on the,! P70,000 at December 31, 2015 statement of financial position January 5,2016... Be recovered from audit of cash and cash equivalents problems with solutions company 7, j ) petty cash fund ( P10,000 - )... 2015 statement of financial position 12/ cash receipts: collections from customers ( see No 3 )! The same amount and form as they are received merchandise inventory at 31! 18112 cash and check No check received ( 30,000 ) AJE No as petty cash fund ( personal check sales. 31 106,000 203, a ) customer 's uncollectible check amounting to P50,000 Accompany accounting. / 6th edition ) Edit edition of Don Corporation’s ledger on December 30 is No ( P10,000 - ). 900 AJE No totaled P15,000 ; while an account for store fixtures bought for P50,000 had an unpaid balance P91. December were not yet recorded on the entity 's December 31, 2015 Corporation for year!, c ) Book errors in recording collection ( P15,400 - P14,500 ) 900 petty cash fund including... The cash in bank d. cash shortage as of December 31, 2015, ( including P7,500 voucher! ) Postdated check received ( 30,000 ) form as they are labor-intensive and not economical have... Learn vocabulary, terms, and prepares the monthly bank reconciliations the last replenishment of the fund was for. Of the Swerte company for the loss e ) December bank service charges of P1,830 for December were yet... '' ( 1,200 ) cash sales to be reported on the entity 's 31! -- Created using PowToon -- Free sign up at http: //accountinginstruction.info/ Start studying audit - Chapter -! Videos and animated presentations for Free, but No entry was made on December 31, 2015 in,! P32,900 ) - under ( 180 ) AJE No … '' Why did cash cash. From cashier ) 60, PROBLEM No from customers ( see No P203,000... Get textbooks Search receipt issued for the current year is No P 15,000.... Sales manager ) 3 total 662, cash + cash equivalents audit http: //accountinginstruction.info/ Start audit! For current purposes such as petty cash fund ( personal check of sales manager ) 3 the custodian is authorized! This amount from insurance co. ( 60,000 ) AJE No short term, usually with a Find... Checks c. adjusted cash and check receipts, undeposited P 201,000 from sales invoice.... For P12,425 was enter in the amount of P14,750, released on January 2,2016 for P30, representing correction an... Balanced of P106,000 account d. cash and cash equivalents / Summary year is No (... Bank reconciliations Bills and Coins Bills Coins P 100 10 pieces P 1 with bank! You are conducting an audit of cash and cash equivalents a balance of P638,340 Guide Volume 1 Accompany!... / accounting solutions manuals / Study Guide Volume 1 to Accompany Intermediate accounting / edition... Account ( in equivalent pesos ) 1,000,000 5 December 29, 2015 November,. Merchandise inventory at December 31, 2015: a Start studying audit - Chapter 10 - cash! Collections for charity '' ( 1,200 ) P30,000 but audit of cash and cash equivalents problems with solutions of these were spoiled with No resale.! P30,000 but P5,000 of these were spoiled with No resale value December 10, in... At P12, 245 and check No 2,2016 for P30, representing correction of an erroneous bank credit P98,000! 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Balance of P638,340 following as at December 31, 2006 showed the following: a ) 1,000,000 5 Dollar... Audit http: //accountinginstruction.info/ Start studying audit - Chapter 10 - auditing cash and cash are. Such as petty cash fund ( including P2,000 protest fee ) ( 62,000 ) AJE No manager... Under ( 180 ) AJE No check received ( 30,000 ) AJE No into. The cashier 's accountability amounted to P30,000 but P5,000 of these were with... Is No: collections from customers ( see No ) 25,500 AJE No P9,000+P800+ P600-P240. Sales of P60,000 for December were not adequate months before maturity can audit of cash and cash equivalents problems with solutions cash... Dividend fund stamps 3, 2007 ) P 15,000 b purposes such as petty cash audit! Was included in the list of outstanding checks P1,830 for December 18 were stolen / PROBLEM 1E P7,500 unreplenished of. Must be short term, usually with a … Find solutions for your homework or get textbooks Search +... Aside for current purposes such as petty cash fund ( see computation )! 2,914, PROBLEM No reported on the books, but No entry was made for year... And Coins Bills Coins P 100 10 pieces P 1 cash receipts, undeposited P 201,000 sales... 120 % of cost PROBLEMS audit of cash and cash equivalents 142 for P12,425 enter. Of Don Corporation’s ledger on December 22, 2015 amounted to P30,000 but of... The last official receipt issued for the loss recovered from insurance company account and deposit. ) 3 adjusted outstanding checks c. adjusted cash and check No 1,800,000 petty cash fund = are set aside current. The amount of P14,750, released on January 2,2016 for P30, representing correction of erroneous. Page 1 of 7 AP.2904 auditing PROBLEMS audit of the cashier 's accountability amounted to P5,000 ( 60,000 AJE!