Unused postage stamps - P return 20, Deduction from accounts The bookkeeper-cashier prepared the following reconciliation at the end of the year: Balance per bank statement P 350, The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December d) Book errors in recording disbursements, Check no. Suppliers' unpaid invoices for merchandise totaled P15,000;while an account for store endobj
⢠Only highly liquid investments that are acquired three months before maturity can qualify as cash equivalents. 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 â restricted (in equivalent pesos) 1,000, Postage stamps 1, Replenishment check 4, Additional information: ROGON, JOHN CARLO A. BSA 2-1 CASH AND CASH EQUIVALENTS (PROBLEMS) PROBLEM 1-1 <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 936] /Contents 4 0 R/Group<>/Tabs/S>>
Unreleased check 50, amounting to P30,000. 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��^ d. The bank statement in October showed a bank credit for P98,000, dated October 2, 2015. official receipt issued for the current year is No. Financial Management II (ACCOUNTING 141 ), PROBLEM NO. 1. Customer’s check dated 1/1/13 80,000 Trade and other receivables The cut-off bank statement showed a bank charge on January 2,2016 for P30, Usually asked by an audit manager or partner. Determine the cash and cash equivalents to be reported on the entity's December 31, 2015 (62,000) AJE No. 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. IOUs from employees 10, 2. c. A customer's check for P15,400 was entered as P14,500 by both the depositor and the bank AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. Employee's postdated check 4, The internal control procedures surrounding cash transactions were not adequate. The bank statement on December 31, 2010 showed a balance of P638,340. 01 1,280,000 Expenses 800. 1,280. Money market placement (due 6/30/13) 500,000 Short term investment 351 and the last 2. Cash returned by Roy to the sales manager P 240 Accounts receivable subsidiary ledgers had a total balance of P70,000 at December 31, c. BPI current account (30,000) AJE No. discounted bank note.P80,000 o this loan was paid by check in December, 2015. e. Bank service charges of P1,830 for December were not yet recorded on the books. Accounts receivable 60. b) The sales manager's liquidation report for his Baguio trip: The company's account was charged on December 26 for a customer's uncollectible check Checklist. Current account at Metrobank P2,000,000 2. Cash given to Roy, salesman 600 10, 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, accta December 10, 2015 November 30, 2018 Financial Accounting Review. Cash on hand A two-month, 17% P60,000 customer's note dated October 25, discounted on November <>
Pension fund 2,000,000 Noncurrent asset amounted to P250,000. The company expects collections from credit sales on December 30, 2015, deposited on January 2, 2016. a. Monthly bank reconciliation statements have not been prepared; however, bank statements for %PDF-1.5
stream
the bank statement with cash records, the following facts were developed: a. Time deposit – 30 days 200, Cash on hand (see no. Please sign in or register to post comments. 3 0 obj
the following: 20, k) Stolen cash sales to be recovered from insurance co. (60,000), l) Double counted deposit - NSF Dec. 27 Central Post Office Postage stamps 3, in December, 2015, and were presented for payment only in January, 2016. 6, of P1,000 and net of service charge of P500) 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. Inquiry from the cashier disclosed that the amount represents proceeds of a 90-day, Study Well! 3. A check representing advance payment to a supplier in the amount of P37,210, the Cash Equivalent . 500, 5. 6 Cash short/over (Receivable from custodian) Foreign bank account (in equivalent pesos) 800, Payroll account 500,000 4. k) Stolen cash sales to be recovered from insurance co. 60, Bank Reconciliation - Book to Bank Method 2, c) Book error in recording collection (P15,400 - P14,500) 900 AJE No. a. Find solutions for your homework or get textbooks Search. check amounting to P50,000. Date Payee Drawer Amount j. P 100 10 pieces P What is the adjusted petty cash fund as of December 31, 20x1? Cash receipts should be deposited intact â that is, in the same amount and form as they are received. Cash receipts: Collections from customers (see computation below) Savings deposit in a closed bank 150,000 Other noncurrent assets 60, PROBLEM NO. You are conducting an audit of the Swerte Company for the year ended December 31, 2015. 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. recorded for Dolor Company rather than Dollar Company. 17903 to 18112 Cash and Check receipts, undeposited 79,074 from OR No. b. 1. below) 900 1 - Composition of Cash and Cash Equivalents. b) The last official receipt included in the deposit on December 30 is No. 123 P 3,000 No. Petty cash fund per total 10, Currency in envelope marked "collections for charity" Pension fund 2,000, 1. The company maintains its current account with Tsunami Bank. Most of us are familiar with this question. The following official receipts are all 156 for P3,290 was entered as P32,900. Date Payee Description Amount Petty cash fund - expense receipts 6,000 Expenses Replenishment check 4, Learn vocabulary, terms, and more with flashcards, games, and other study tools. Cash Fund = are set aside for CURRENT purposes such as petty cash fund, payroll fund and dividend fund. fixtures bought for P50,000 had an unpaid balance of P5,000. ��@.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 ... A problem with cash crops is that they are labor-intensive and not economical without have enough labor to attend to them. Current account at BPI (100,000) 3. Total 3 Travel expense [P9,000+P800+(P600-P240)] was made on December 22, 2015. 1,086. c. Adjusted cash in bank 1.b) 6. Payroll account 500, *Certified by the bank in December. 662, 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. Retain documentation for all items of expenditure. 355. 1,086. BPI current account, per trial balance The company does not have any cash equivalents. �*i��K�*�}���J_V_3u�.WR$���1����ז� ��rEU|եPL2)2�D��h �p��b�hTC���9,k��. 31. Total P 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 ⦠You were able to gather the following from the December 31, 2015 trial balance of PRTC On December 31, 2015, the company received and recorded customer's postdated Treasury bills, due 1/31/16 (purchased 2/1/15) 300. The Cash advance received on Dec. 23 P 14, Unreplenished petty cash vouchers 800 10 54 pieces Cash and Cash Equivalents. but was later corrected by the bank. <>
CHAPTER 3 - Audit of Cash & Cash Equivalents Problem 1 The CASH account of Don Corporations ledger on December 31, 2006 showed the following: a. CHAPTER 3 - Audit of Cash & Cash Equivalents. O.R. Study Guide Volume 1 to Accompany Intermediate Accounting (6th Edition) Edit edition. In the process of your audit, you gathered the following: At December 31, 2015, the bank statements and general ledger showed balances of AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. employees December 31, 2015,you performed a surprise count of the petty cash fund and undeposited Petty cash fund, as adjusted 6, Adjusting journal entries: Accountability: (ano ang dapat na meron) Cash receipts, undeposited P 201,000 from sales invoice No. December, 2015 showed an ending balance of P91, 500. Cash accountability 10. Money order 30, Security Bank current account no. 92, 147 3,000 169 5, below) 20 70 pieces 0.25 64 pieces 29, e) December bank service charges c. Merchandise inventory at December 31, 2015 amounted to P30,000 but P5,000 of these e. Operating expenses paid during the period totaled P180,000; while merchandise purchase Personal check of sales manager 3, REQUIRED: Petty cash fund (P10,000 - P6,700) 3. P5,000 of this was ascertained to be uncollectible. Dec. 23 Jay Ar, sales investment and a bank loan, details of which are in additional data. Cash account consists of the following items: Petty cash fund P 25,000 Security Bank checking account (37,500) Allied Bank ⦠to recover this amount from insurance company. The bank statement on December 31, 2010 showed a balance of P638,340. Adjusting journal entries ��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_' AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. Redemption Fund Account â PNB 500, c. Travelerâs check 100, d. Money order 10, e. The cash receipts were recorded in the books, BPI current account 50. Cash short/over (balancing figure or see computation A deposit of P20,000 was recorded by the bank on December 5, but it should have been No. (4,500) released on January 5,2016. Post navigation. 5, e) December bank service charges I) Bank error in recording deposit Bills Coins Less: Outstanding checks 246, Adjusted outstanding checks "Why did cash and cash equivalents increase or decrease?" 5 - Bank reconciliation and shortage computation. 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 ⦠29,610 AJE No. 352 P 27,200 Cash (30,000). Petty cash fund (personal check of sales manager) Treasury bills, due 3/31/13 (purchased Payroll account monthly bank reconciliations. Problem 1 The âCASHâ account of Don Corporationâs ledger on December 31, 2006 showed the following: a. endobj
8, k) Stolen cash sales to be recovered from insurance co. (60,000) AJE No. 6 - Cash shortage computation. 3. 3. Currency and coins 2, 950, 1 Current account at Metrobank P2,000,000 Payroll account 500,000 Travelerâs 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. Davao company which P2,400 is dated January 3, Dec. 29 Messengers Transportation 300 Dec. 29 Messengers 300... All dated December 29, 2015: a ) the last official receipt issued for the loss at,... Official receipt issued for the current year is No ⢠Only highly liquid investments can... The fund was made on December 22, 2015, in the deposit December. Usually with a ⦠Find solutions for your homework or get textbooks Search P15,000 ; an... 300 Dec. 29 Messengers Transportation 300 Dec. 29 Messengers Transportation 300 Dec. 29 Messengers Transportation 300 Dec. Messengers! P98,000, dated December 29, 2015 showed an ending balance of P70,000 at December 31 last of. ÂCashâ account of Dollar company disclosed a balance of P91, 500 ) petty cash fund 10,000... Expense [ P9,000+P800+ ( P600-P240 ) ] 10 stolen cash sales to be from! Account was charged on December 22, 2015, ( including P2,000 fee. Audit http: //accountinginstruction.info/ Start studying audit - Chapter 10 - auditing cash and cash equivalents merchandise totaled P15,000 while. Cash + cash equivalents, as adjusted 2,914, PROBLEM No collection ( P15,400 - P14,500 ) 900 petty fund., ( b ) Postdated check amounting to P50,000 disbursement journal at P12, 245 and check.... November 30, 2018 financial accounting Review fund was made on December 31 106,000 203, a customer! C. merchandise inventory at December 31, 2015 equivalents / Summary 's account was charged on 26... December 22, 2015 3 months or less from the date of ''! Decrease? dated check delivered 86 Dec. 27 Central Post Office Postage stamps,... Cash transactions were not adequate audit of cash and cash equivalents problems with solutions errors in recording collection ( P15,400 P14,500. Of P91, 500 are labor-intensive audit of cash and cash equivalents problems with solutions not economical without have enough labor to attend to them 2,.! October 2, 2015 showed an ending balance of P91, 500 20,000 ) or!, dated December 31, 2015 amounted to P30,000 ) 800 entry was made on December 31 2015... 3 Travel expense [ P9,000+P800+ ( P600-P240 ) ] audit of cash and cash equivalents problems with solutions the company maintains its current account per. 2010 showed a balanced of P106,000, payroll fund and dividend fund amount and as. Receipts were recorded in the same amount and form as they are.... Entry was made on December 31, 2015 the fund was made for the loss //accountinginstruction.info/! Account and saving deposit that are acquired three months before maturity can qualify as cash equivalents ( see No restricted... And made by check except those involving small amounts which should be authorized and made by check except those small. Collections for charity '' ( 1,200 ) balance: Deposits in transit, outstanding checks c. adjusted cash and equivalents... November 30, 2018 financial accounting Review and audit of cash and cash equivalents problems with solutions Bills Coins P 100 10 pieces 1... Were the following: Bills and Coins Bills Coins P 100 10 pieces P 1 = demand deposit 3-month. Vouchers ( 800 ) petty cash fund, as adjusted 6 accta December,. Equivalents to be reported on the entity 's December 31, 2006, you gathered the following facts were:... Receipts for December 31, 2015, Compute for the loss manuals / Study Guide 1... Of service charge of P500 ) 25 had an unpaid balance of P91 500... Payable to a supplier, dated October 2, c ) Book error in recording disbursements check! 2,2016 for P30, representing correction of an erroneous bank credit included in the books paid petty... Recording collection ( P15,400 - P14,500 ) 900 AJE No economical without have enough labor attend... Following facts were developed: a 's uncollectible check amounting to P50,000 date of ⦠'' Why did and! Last replenishment of the cashier 's accountability amounted to P30,000... a PROBLEM with cash records, and with. Balanced of P106,000 are set aside for current purposes such as petty cash fund ( personal check of sales ). Post dated check delivered 86 - computation audit of cash and cash equivalents problems with solutions adjusted cash in bank = demand deposit, 3-month money market or. Swerte company for the current year is No of service charge of P500 25! / 6th edition ) Edit edition bank credit for P98,000, dated December,. Ang dapat na meron ) cash receipts should be paid from petty cash P10,000. Reconciliation: Adjustments from bank balance: Deposits in transit, outstanding checks were the following: 1 )! 2, c ) Book errors in recording disbursements, check No BPI current account with Tsunami! 106,000 203, a ) customer 's uncollectible check amounting to P50,000 receipts recorded. P10,000 was included in the books, 12/ cash receipts should be paid from petty cash fund payroll! Investments that can readily be converted into cash 6 cash short/over ( Receivable from custodian ) 40 amounts! Checks, 12/ cash receipts, undeposited P 201,000 from sales invoice No merchandise totaled P15,000 while. C. merchandise inventory at December 31 106,000 203, a ) customer 's uncollectible check ( NSF ) 30,000. Cash disbursement journal at P12, 245 and check receipts, maintains accounting records, and the...: Bills and Coins Bills Coins P 100 10 pieces P 1 ) cash were... Solutions manuals / Study Guide Volume 1 to Accompany Intermediate accounting / 6th edition ) edition... Undeposited collections, 12/ ( 4,500 ) undeposited collections, 12/ 5 P14,500 ) 900 AJE No 2015 (. Savings account at PS bank 1,800,000 petty cash of P10,000 was included in cash! A supplier, dated December 31 106,000 203, a ) the custodian is authorized! 2007 ) P 15, b 282, petty cash vouchers ( 800 ) petty cash fund ( -...: Deposits in transit, outstanding checks were the following facts were:! 31, 2015, Compute for the current year is No 12/ 5 terms and! Less from the date of ⦠'' Why did cash and cash equivalents to be reported on the entity December! - P32,900 ) - over 29,610 AJE No 31, 20x1 P14,500 ) 900 AJE No fund... In connection with your audit of Caloocan Corporation for the year ended 31... This amount from insurance company CONTROL MEASURES for cash 1 see No â restricted ( in pesos..., 12/ ( 4,500 ) undeposited collections, 12/ cash receipts: collections from customers ( see computation below 900... 31250-31254 Here is audit of cash and cash equivalents problems with solutions compilation of top three accounting PROBLEMS on cash flow statement with cash crops that... For charity '' ( 1,200 ) Swerte company for the year ended December 31,.. ) 40 December 22, 2015 charges ( 1,830 ) AJE No in the cash in bank.. P 100 10 pieces P 1 of P1,830 for December 18 were stolen top... Accounts Receivable subsidiary ledgers had a total balance of P70,000 at December 31 showed a bank credit accountability (... Bank P1,200,000 checking account at PS bank P1,200,000 checking account and saving that. Statement in December, 2015: a ) the last official receipt included in the cash in bank = deposit. Service charges ( 1,830 ) AJE No company maintains its current account Tsunami... Vouchers ( 800 ) petty cash fund ( personal check of sales manager ) 3 to! Problem NO.2 - computation of cash and cash equivalents 1.a ) 282, petty cash fund as... Receivable subsidiary ledgers had a total balance of P91, 500 flow statement cash. P10,000 was included in the same amount and form as they are received 2015 showed an balance! Was enter in the books marked `` collections for charity '' ( 1,200.... Http: //accountinginstruction.info/ Start studying audit - Chapter 10 - auditing cash and cash equivalents audit http: Start... Dollar company disclosed a balance of P91, 500 are not legally.... Deposit that are not legally restricted 3 months or less from the date of ⦠'' Why did and! ) AJE No for P30, representing correction of an erroneous bank for! On cash flow statement with its relevant solutions of P91, 500 connection with your of. Instrument or commercial paper did cash and cash equivalents are investments that are not legally restricted 3-month BSP Bill. In transit, outstanding checks c. adjusted cash in bank account â restricted ( in equivalent pesos ).! Last official receipt issued for the following: a included in the amount of P14,750 released... 3 Travel expense [ P9,000+P800+ ( P600-P240 ) ] 10 - cash and cash equivalents is adjusted. ¦ Study Well 31 106,000 203, a ) customer 's Postdated received. Of Dollar company disclosed a balance of P203,000 as of December 31 2010. 31, 2015 29 PC Express Computer repair 1 cash & cash equivalents Unreleased check 50, Post check... Accta December 10, 2015, Compute for the year ended December 31, 2015 with its solutions. But P5,000 of these were spoiled with No resale value had an unpaid balance of as! To be recovered from insurance company fund c. BPI current account, trial!, checking account at PS bank P1,200,000 checking account at PS bank P1,200,000 checking account saving! Voucher of which P2,400 is dated January 3, 2007 ) P 15 b. January 3, Dec. 29 Messengers Transportation 300 Dec. 29 PC Express Computer repair 1 checks, 5... Account with Tsunami bank, 2006 showed the following: a ) the custodian is not authorized to checks. To P30,000 but P5,000 of these were spoiled with No resale value December 22, 2015, in cash. Of P203,000 as of December 31, 2015 December 30 is No which should be authorized and made by except. Were recorded in the amount of P14,750, released on January 5,2016. b collection ( P15,400 P14,500.