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AP Computation Cash and Cash Equivalents
AP Computation Cash and Cash Equivalents
Requirement No. 2
Petty cash fund per total 10,300
Employees' vales (1,600)
Currency in envelope marked "collections for charity" (1,200)
Unreplenished petty cash vouchers (800)
Petty cash fund, as adjusted 6,700
Requirement No. 3
BPI current account, per trial balance 950,000
Unreleased check 50,000
Post dated check delivered 86,000
BPI current account, as adjusted 1,086,000
Requirement No. 4
Cash on hand (see no. 1) 282,000
Petty cash fund (see no. 2) 6,700
BPI current account (see no. 3) 1,086,000
Security Bank current account no. 1 1,280,000
Security Bank current account no. 2 (40,000) 1,240,000
PNB time deposit (assumed can be preterminated) 300,000
Cash and cash equivalents, as adjusted 2,914,700
Note: The P500,000 PNB savings account will be presented separately from
cash and cash equivalents since it has been earmarked for the acquisition
of a noncurrent asset.
Chapter 1 - Audit of Cash and Cash Equivalents
PROBLEM NO. 2
BoomPanes COMPANY
Bank Reconciliation
December 31, 2014
BANK BOOKS
Unadjusted balances, December 31 106,000 203,000
Add (deduct):
a) Customer's uncollectible check (NSF) (30,000) AJE No. 1
b) Dishonored note receivable
(including P2,000 protest fee) (62,000) AJE No. 2
c) Book error in recording collection (P15,400 - P14,500) 900 AJE No. 3
d) Book errors in recording disbursements
Check no. 142 (P12,425 - P12,245) - under (180) AJE No. 4
Check no. 156 (P3,290 - P32,900) - over 29,610 AJE No. 5
e) December bank service charges (1,830) AJE No. 6
f) Note collected by bank (including interest income
of P1,000 and net of service charge of P500) 25,500 AJE No. 7
g) Deposits in transit 24,000
h) Outstanding checks (35,000)
I) Bank error in recording deposit (20,000)
j) Petty cash fund (10,000) AJE No. 8
k) Stolen cash sales to be recovered from insurance co. (60,000) AJE No. 9
l) Double counted deposit - NSF (20,000) AJE No. 10
- - - -
AJE No. 1
AJE No. 2
AJE No. 3
Chapter 1 - Audit of Cash and Cash Equivalents
PROBLEM NO. 4
Harthart Company
Proof of Cash
For the month of September, 2014
- - - -
Answers: B, B, B, B, B, B
Chapter 1 - Audit of Cash and Cash Equivalents
PROBLEM NO. 6
FourTwo Company
Proof of Cash
For the month of December, 2014
11/30/14 Receipts Disb 12/31/14
Unadjusted bank balances 96,800 842,400 131,200 808,000
Deposits in transit
November 30 18,000 (18,000)
December 31 88,800 88,800
Outstanding checks
November 30 (16,000) (16,000)
December 31
(No. 276,284,285,286,288,290,292,293,294) 216,800 (216,800) (1)
Adjusted bank balances 98,800 913,200 332,000 680,000
1. C
2. C
3. C
4. C
5. D
Chapter 1 - Audit of Cash and Cash Equivalents
PROBLEM NO. 7 - Submarine Company
Requirements No. 1 and 2
Bills and coins
Denomination Quantity Amount Total
P100.00 10 1,000
50.00 80 4,000
20.00 70 1,400
10.00 54 540
1.00 410 410
0.50 324 162
0.25 64 16 7,528
Checks
Date Drawer Amount
Dec. 30 Ms. Au 2,400
Dec. 30 Emong De Leon 28,000
Dec. 31 Apol Boba 3,360
Dec. 31 Datu Macmod 35,600
Dec. 31 Tom Guts 16,600 85,960
Unreplenished vouchers
Date Account Amount
Dec. 23 Advances 14,000
Dec. 27 Postage 3,240
Dec. 29 Transportation 300
Dec. 29 Repairs 1,600 19,140 AJE 1
Total cash and cash items counted 112,628
Less accountabilities:
Petty cash 20,000
Unclaimed salaries 15,000 AJE 3
Excess travel advance returned 3,360 AJE 4
Collections per offical receipts 86,600
Unreceipted collection from Emong De Leon 28,000 152,960 AJE 5
Cash shortage (40,332) AJE 6
Requirement No. 3
Petty cash fund per GL 20,000
Unreplenished vouchers (19,140)
Excess travel advance 3,360
Petty cash fund balance, 12/31/14 4,220
Requirement No. 4
1 Advances to officers and employees 14,000
Postage expense 3,240
Transportation expense 300
Repairs and maintenance 1,600
Petty cash fund 19,140
3 Cash 15,000
Salaries payable 15,000
Chapter 1 - Audit of Cash and Cash Equivalents
4 Travel expense [P9,000+P800+(P600-P240)] 10,160
Petty cash fund (personal check of sales manager) 3,360
Advances to officers and employees 13,520
5 Cash 28,000
Accounts receivable 28,000
BANK BOOKS
Unadjusted balances 30,200 122,000 (see below)
Petty cash fund (1,300)
Outstanding checks (4,500)
Deposit in transit 5,000
Total 30,700 120,700
Cash shortage (90,000)
Adjusted balances 30,700 30,700
-
Cash receipts:
Owners' investment 150,000
Proceeds from loan 98,000
Collections from customers (see below) 414,000
Total 662,000
Cash disbursements:
Purchases (P250,000 - P15,000) 235,000
Store fixtures (P50,000 - P5,000) 45,000
Loan payment 80,000
Expenses paid 180,000 540,000
Cash balance per books, 12/31 122,000
Franc Company
Proof of Cash
For the month of August, 2014
August
July 31 Receipts Disb August 31
3. D (P33,400)
4. A (P9,100)
5. D (P73,200)
Chapter 1 - Audit of Cash and Cash Equivalents
PROBLEM NO.12 - PRTC Company
December
Nov. 30 Receipts Disb Dec. 31
2D
Cost of sales (P1,615,040/1.4) 1,153,600
Add: Merchandise inventory, 11/15 469,600
Purchases 1,623,200
Less: Accounts payable, 11/15 231,420
Payments for purchases 1,391,780
3C
4B
Cash receipts:
Issuance of common stock for cash 1,600,000
Mortgage note payable 400,000
Notes payable - bank 160,000
Collections from sales (see no. 1) 1,188,140
Total 3,348,140
Cash disbursements:
Purchase of real estate 1,000,000
Furniture and fixtures (P145,000 - P30,000) 115,000
Expenses paid 303,780
Payments for purchases (see no. 2) 1,391,780 2,810,560 (3)
Cash balance per books, 11/15 537,580 (4)
5A
Per bank Per books
Unadjusted balances 131,640 537,580
Deposit in transit 25,700
Outstanding checks (9,260)
Balances 148,080 537,580
Shortage (389,500)
Adjusted balances 148,080 148,080