Name: BOTICARIO, DOMINIC E.

Course and Block: BSA-3A

APPLIED AUDITING
Preliminary Examination

A. MULTIPLE CHOICES

1. B 6. D

2. D 7. A

3. D 8. C

4. D 9. C

5. A 10. B

B. PROBLEMS

1. Cash and cash equivalents

Cash and cash equivalents ₱6,420,000

Bank overdraft 60,000
Check –Accounts payable (50,000)
Cash receipt 200,000
Adjusted Cash and Cash Equivalents ₱6,630,000

2. Accounts receivable

Accounts receivable ₱4,850,000

Overpayment (40,000)
Subscription receivable (450,000)
Advances to Affiliated (600,000)
Check 107,800
Adjusted Accounts receivable ₱3,867,800

3. Accounts receivable

Unadjusted Accounts receivable ₱536,000

Silver Corp. 20,000
Iron Company 10,000
Aluminium Company 45,000
Adjusted Accounts receivable ₱611,000

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4.
Cash collection from account ₱175,000
Cash sales 123,000
Down payment (60,000)
Payment of loan (40,000)
Disbursements for expenses (86,000)
Purchases of goods (58,000)
Advanced payment made by a customer 10,000
Write-off (12,000)
Adjusted Cash 52,000
Cash 39,300
Shortage ₱12,700

5. What is the adjusted cash balance of East Co. as of December 31, 2020?

Cash balance per bank ₱50,000

Add: Cash on hand 20,200
Total 70,200
Less: Outstanding checks 15,000
Adjusted Cash balance ₱55,200

6. How much is the cash shortage or overage of East Co. as of December 31, 2020?

Cash balance per ledger ₱43,000

Less: NSF check 12,000
Bank charge 1,000
As corrected 30,000
As adjusted 55,200
Cash overage ₱25,200

7.
Unadjusted Accounts receivable ₱1,378,000
Customer’s check 25,000
Sales return (54,720)
Collection (25,950)
Adjusted Accounts receivable ₱1,322,330

8.
Balance per book statement ₱371,023
Add: Notes receivable (10,000+500) 10,500
Outstanding checks 10,375
Total 391,898

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Less: NSF check 76,012
Shortage 1,200
Bank charges 625
Adjusted Cash Balance ₱314,061

Balance per bank statement is ₱314,061

C. ADJUSTING ENTRIES

1. Bills and coins ₱11,500

Advances to sales manager 4,000
Travel expense 5,200
Supplies expense 3,800
Cash shortage 500
Petty Cash Fund ₱25,000

2. Accounts receivable ₱105,000

Cash in Bank ₱105,000

3. Cash in Bank ₱16,000

Accounts payable ₱16,000

4. Repair expense ₱14,680

Petty cash fund ₱14,680

5. Interest receivable ₱8,200

Interest income ₱8,200

6. Accounts receivable-trade ₱2,398,000

Sales ₱2,398,000

7. No Entry

8. Accounts receivable ₱55,000

Sales ₱55,000

9. Allowance for uncollectible accounts ₱15,000

Accounts receivable ₱15,000

10. Bad debt expense ₱48,140

Allowance for uncollectible accounts ₱48,140

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