... / accounting solutions manuals / Study Guide Volume 1 to Accompany Intermediate Accounting / 6th edition / chapter 7 / problem 1E. Computation of cash balance per books, 12/ Solution: 1. %���� 1,280. 31250-31254 The following official receipts are all Previous. (62,000), c) Book error in recording collection (P15,400 - P14,500) 900, d) Book errors in recording disbursements, Check no. "Why did cash and cash equivalents increase or decrease?" Determine the cash shortage as of December 31, 2015. ��@.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 the bank statement with cash records, the following facts were developed: a. 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. Bills and Coins were spoiled with no resale value. 8, k) Stolen cash sales to be recovered from insurance co. (60,000) AJE No. 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. Time deposit – 30 days 200, The cash receipts were recorded in the books, (30,000). 123 P 3,000 No. (20,000). AUDIT OF CASH AND CASH EQUIVALENTS. i. a) The custodian is not authorized to cash checks. 353 35,600 Check Advances to officers and employees 5. 2. Petty cash of P10,000 was included in the Cash in Bank balance. December, 2015 showed an ending balance of P91, 500. Less: Hotel accomodation P official receipt issued for the current year is No. Undeposited collections, 12/ amounting to P30,000. Audit Cash & Cash Equivalents Audit http://accountinginstruction.info/ CHAPTER 3 - Audit of Cash & Cash Equivalents. Unreleased check 50, 1. Post navigation. CASH AND CASH EQUIVALENTS. 2,914, PROBLEM NO. Petty cash fund, as adjusted 6. ��������Q�FeB��+��̋2�.KL�]a�\�zY.^_����/[���_���7K)?�ů����cbl�Ty%�>�����Qb `�R ���� 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 1.b 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 … No. k) Stolen cash sales to be recovered from insurance co. 60, Bank Reconciliation - Book to Bank Method The bank statement in No. ... A problem with cash crops is that they are labor-intensive and not economical without have enough labor to attend to them. Advances to officers and employees 1, investment and a bank loan, details of which are in additional data. Accountability: (ano ang dapat na meron) Cash receipts, undeposited P 201,000 from sales invoice No. Adjusting entries as of December 31, 2015, (b) Postdated check received Requirement No. below) BPI current account, as adjusted (180) AJE No. In connection with the audit of the financial statements of Rupee Company for the year ended Other items found inside the cash box: 355 16,600 Check 6 Cash short/over (Receivable from custodian) e. Bank service charges of P1,830 for December were not yet recorded on the books. BPI current account (see no. You are conducting an audit of the Swerte Company for the year ended December 31, 2015. Petty cash fund (including P7,500 unreplenished voucher of which P2,400 is dated January 3, 2007) P 15, b. Date Payee Drawer Amount 2. (20,000), Bank Reconciliation - Adjusted Balance Method 1, (including P2,000 protest fee) 60, PROBLEM NO. collected on December 28, and the bank charged P500 (No entry was made on the books when Cash receipts: Collections from customers (see computation below) 355. 4. 2 Savings account at PS Bank P1,200,000 Checking account at PS Bank 1,800,000 Petty cash … Security Bank current account no. 662, 1,086. 1,086. f. The gross profit rate is 120% of cost. stream Current account at BPI (100,000) 3. December 31, 2015,you performed a surprise count of the petty cash fund and undeposited Provide cash and cash equivalents faster than usual. 354 7,200 Cash 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 … f. A bank memo stated that a customer's note for P25,000 and interest of P1,000 had been (1,200). (10,000) AJE No. Please sign in or register to post comments. December 31, 2012, a) Customer's uncollectible check (NSF) monthly bank reconciliations. 2�p����T33�\�a��J����-��xA�/���L�켞g�Rp8C}[O+���T-VQG�'���iZ���~p�f�!t�3s��rW\Ī��� �1��:��-]�H������%�Bp()E^�@[email protected]*J ��C(9l1�����2��В�K�M��n$C(q3��c���Qg����B�&� DAIF check of customer 15,000 Trade and other receivables 1,800, 25,500 AJE No. d. Check no. Alternative 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. Bank reconciliation: Adjustments from bank balance: Deposits in transit, outstanding checks. d. Cash and cash equivalents IOUs from employees 10, October, November, and December were made available to you. 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 7, j) Petty cash fund d) Book errors in recording disbursements, Check no. 106,000 203, a) Customer's uncollectible check (NSF) 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 The internal control procedures surrounding cash transactions were not adequate. was made on December 22, 2015. From the records of the company, you P 100 10 pieces P Savings deposit in a closed bank 150, Advances to officers and 25, was dishonored on December 25, and the bank charged the company P62,000, which Date Payee Description Amount 1 - Composition of Cash and Cash Equivalents. 5. dated December 31, 2015. AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 936] /Contents 4 0 R/Group<>/Tabs/S>> 20, k) Stolen cash sales to be recovered from insurance co. (60,000), l) Double counted deposit - NSF discounted bank note.P80,000 o this loan was paid by check in December, 2015. the following: Unadjusted balances, December 31 Postage stamps 1,000 Unused supplies (Other CA) A deposit of P20,000 was recorded by the bank on December 5, but it should have been Adjusting journal entries: 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. b. b. A check payable to a supplier, dated December 29, 2015, in the amount of P14,750, Dec. 30 Cash Ms. Jessie P 2, You were engaged to audit the books of Davao Company. 147 3,000 169 5, 3 *Certified by the bank in December. b. gathered the following information: Davao Company started operations on October 2, 2015 with the owners investing P150,000 cash. %PDF-1.5 bookkeeper-cashier handles cash receipts, maintains accounting records, and prepares the What is the adjusted petty cash fund as of December 31, 20x1? Dec. 30 Rupee Company Robert 28, of P1,000 and net of service charge of P500) Dec. 31 Rupee Company Francis 35, statement of financial position. Money order 30, b) The sales manager's liquidation report for his Baguio trip: Determine the cash and cash equivalents to be reported on the entity's December 31, 2015 collections from credit sales on December 30, 2015, deposited on January 2, 2016. a. Foreign bank account (in equivalent pesos) 800. Expenses 800. Payroll account 500, BPI current account, per trial balance Cash equivalents are investments that can readily be converted into cash. Total released on January 5,2016. ��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�*[email protected]�[�~ےX��Y� =ߺy����K0&�"f ���.Jt_' • Only highly liquid investments that are acquired three months before maturity can qualify as cash equivalents. Money market placement (due 6/30/13) 500,000 Short term investment The Accounts receivable subsidiary ledgers had a total balance of P70,000 at December 31, You were able to gather the following from the December 31, 2015 trial balance of PRTC b. check amounting to P50,000. (30,000), (including P2,000 protest fee) ˆ��[%Z�/��G�X�E�A��g���+���-'��v��.V!�=����Y��}��c��S�1tѠ��)i��jj�8�I�i� �� .����j�t���h��� Usually asked by an audit manager or partner. Customer's check dated 1/1/16 80, 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. Postage stamps 1, 3 0 obj Cash Equivalent . Treasury bills, due 3/31/13 (purchased 9, PROBLEM NO. Cash short/over (balancing figure or see computation 4 Cash advance received on Dec. 23 P 14, Bank Reconciliation: This tends to be another integral component of the audit procedure for cash and cash equivalents. payable Cash account consists of the following items: Petty cash fund P 25,000 Security Bank checking account (37,500) Allied Bank … 4, Store fixtures (P50,000 - P5,000) 45, Credit memo from a vendor for a purchase return 20, 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��^ 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. 1.  Included in the list of outstanding checks were the following: 4 0 obj d. Cash shortage. P6,000). a) Two pay envelopes which had been opened and the contents aggregating P15, -- Created using PowToon -- Free sign up at http://www.powtoon.com/ . 17903 to 18112 Cash and Check receipts, undeposited 79,074 from OR No. Composition of Cash Equivalents *Commercial Paper / Money Market Instrument / …  The cut-off bank statement showed a bank charge on January 2,2016 for P30, 1 Accounts receivable 60. Total 540, December 31, 2012 Your analysis of these bank Cash returned by Roy to the sales manager P 240 1 In connection with your audit of Caloocan Corporation for the year ended December 31, 2006, you gathered the following: 1. 3 Travel expense [P9,000+P800+(P600-P240)] statements showed total bank credits (deposits) of P575,000 including the owners' initial 31. Add: Deposit in transit P 175, Dec. 31 German Corp. Rupee Company 54, Expense Vouchers The following data pertain to PRTC Corporation at December 31, 2015: Current account at Metrobank P Suppliers' unpaid invoices for merchandise totaled P15,000;while an account for store Cash Fund = are set aside for CURRENT purposes such as petty cash fund, payroll fund and dividend fund. 1.a) employees <> (62,000) AJE No. 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 … 12/31/12) 200, 143 2,000 157 6, In the process of your audit, you gathered the following:  At December 31, 2015, the bank statements and general ledger showed balances of Current account at Metrobank P2,000,000 2. Find solutions for your homework or get textbooks Search. 142 for P12,425 was enter in the cash disbursement journal at P12, 245 and representing unclaimed salaries had been removed. Cash accountability 10. Post dated check delivered 86. 156 (P3,290 - P32,900) - over 92, 142 (P12,425 - P12,245) - under 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 Check no. Customer’s check dated 1/1/13 80,000 Trade and other receivables P350,000 and P293,500, respectively. Cash balance per books, 12/31/Cash accountability (see computation 5 - Bank reconciliation and shortage computation. Upon comparing The investment must be short term, usually with a … 13. (180). Redemption Fund Account – PNB 500, c. Traveler’s check 100, d. Money order 10, e. Unreplenished petty cash vouchers 800 156 (P3,290 - P32,900) - over Dec. 23 Jay Ar, sales Inquiry from the cashier disclosed that the amount represents proceeds of a 90-day, 2 0 obj representing correction of an erroneous bank credit. (30,000) AJE No. c. Adjusted cash in bank The company's account was charged on December 26 for a customer's uncollectible check ROGON, JOHN CARLO A. BSA 2-1 CASH AND CASH EQUIVALENTS (PROBLEMS) PROBLEM 1-1 Checks Savings deposit in a closed bank 150,000 Other noncurrent assets Start studying Audit - Chapter 10 - Auditing Cash and Cash Equivalents. j?l���/~�j_���0�DJ��Rg�Eeٔ��V�y��0��a-�v��% I) Bank error in recording deposit c. A customer's check for P15,400 was entered as P14,500 by both the depositor and the bank Your audit of the company’s account with Tsunami Bank … Account for all cash. Petty cash fund (personal check of sales manager) Learn vocabulary, terms, and more with flashcards, games, and other study tools. but was later corrected by the bank. The bank statement on December 31, 2010 showed a balance of P638,340. 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. fixtures bought for P50,000 had an unpaid balance of P5,000. Problem 2: cashier's accountability amounted to P5,000. Page 1 of 7 AP.2904 AUDITING PROBLEMS OCAMPO/OCAMPO AP.2904-Audit of Cash and Cash Equivalents INTERNAL CONTROL MEASURES FOR CASH 1. Payroll account Problem 1 The “CASH” account of Don Corporation’s ledger on December 31, 2006 showed the following: a. Outstanding checks , 12/ Adjusting journal entries A check representing advance payment to a supplier in the amount of P37,210, the 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)… Cash on hand (see no. 6 - Cash shortage computation. 1 0 obj Cash and cash equivalents, as adjusted endobj 122. 3,584, Current account at Allied Bank Examination of the paid checks disclosed that checks totaling P4,500 were issued by the company c. BPI current account Amount Form of payment 3. date of which is January 4, 2016, and released in December, 2015. Retain documentation for all items of expenditure. Petty cash fund (P10,000 - P6,700) 3. You were told by the cashier that these were Employee’s post dated check 4,000 Trade and other receivables. CASH EQUIVALENT- matures 3 months or less from the date of … Current account at Allied Bank (100,000) 144 7,000 159 7, The bank statement on December 31, 2010 showed a balance of P638,340. Currency and coins 2, AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO.  On December 31, 2015, the company received and recorded customer's postdated O.R. b��.�\l�y��#��p�T��T!��O��HK��e�mex[����� ��1;��,s�Ĵ)� �A}�~� ��h�E��>~�F�d�ݲY|^��-�QA�����ڬ7�Q��wv� 1. �*i��K�*�}���J_V_3u�.WR$���1����ז� ��rEU|եPL2)2�D��h �p��b�hTC���9,k��. 01 1,280,000 included a protest fee of P2,000. 352 P 27,200 Cash Cash given to Roy, salesman 600 10, Most of us are familiar with this question. Dec. 31 Rupee Company Jay Ar, sales manager 3, The bank statement as of December 31 showed a balanced of P106,000. <> Monthly bank reconciliation statements have not been prepared; however, bank statements for Petty cash fund (P4,000 in currency and expense receipts for 14. c. Merchandise inventory at December 31, 2015 amounted to P30,000 but P5,000 of these k. Proceeds from cash sales of P60,000 for December 18 were stolen. BANK BOOKS. Adjusting entries as of December 31, 2015, Compute for the following as at December 31, 2015: 1. check no. the note was sent to the bank for reconciliation). 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. g. Receipts for December 31 for P24,000 were deposited on January 2. 1. 156 for P3,290 was entered as P32,900. Less: Outstanding checks 246, 25. Total P Bus fare for two 800 I) Bank error in recording deposit Make your own animated videos and animated presentations for free. Money market placement (due 6/30/16) 500, but no entry was made for the loss. Treasury bills, due 3/31/16 (purchased 12/31/15) 200, Pension fund 2,000,000 Noncurrent asset Study Guide Volume 1 to Accompany Intermediate Accounting (6th Edition) Edit edition. 351 and the last in December, 2015, and were presented for payment only in January, 2016. The last replenishment of the fund 500, P5,000 of this was ascertained to be uncollectible. Adjusted outstanding checks 9, below) 900 IOU from employees 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. Accounted for as follows: Additional information: b. 50 80 pieces 0.50 324 pieces Purchases (P250,000 - P15,000) 235. accta December 10, 2015 November 30, 2018 Financial Accounting Review. Treasury bills, due 1/31/16 (purchased 2/1/15) 300. Pension fund 2,000, Cash short/over (Receivable from Cash count of the Payroll account 500,000 4. Foreign bank account – restricted (in equivalent pesos) 1,000,000 5. 29,610 AJE No. Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. Traveler's check 50, Adhere to general principles for cash control. 950, Petty cash fund cashier) 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. Cash and Cash Equivalents. Adjusted deposit in transit Replenishment check 4, Balance per general ledger 293. Cash receipts should be deposited intact – that is, in the same amount and form as they are received. Cash on hand 1.c) Prepare accurate cash budgets. return 20, Deduction from accounts Replenishment check 4, Dec. 29 Messengers Transportation 300 �~��(�.���?��/W 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, Dec. 29 PC Express Computer repair 1. • Examples: 3-month BSP Treasury Bill, 3-month Time deposit, 3-month money market instrument or commercial paper. 29, e) December bank service charges Petty cash fund (see no. Employees' vales 1, The company maintains its current account with Tsunami Bank. 6, of P1,000 and net of service charge of P500) 3. 20 70 pieces 0.25 64 pieces Implement physical cash limits. The bookkeeper-cashier prepared the following reconciliation at the end of the year: Balance per bank statement P 350, DAIF check of customer 15, Study Well! Unused postage stamps - P 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, endobj AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. 154 P Balance P 3. 2. 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. Items included: 5, e) December bank service charges (1,830) AJE No. The company expects <> 2015. Computation of shortage: j. to recover this amount from insurance company. 2, c) Book error in recording collection (P15,400 - P14,500) 900 AJE No. No, cash + cash equivalents is the most liquid account. 142 (P12,425 - P12,245) - under Employee's postdated check 4, Credit memo from a vendor for a purchase amounted to P250,000. d. The bank statement in October showed a bank credit for P98,000, dated October 2, 2015. 3 - Cash count and shortage computation. 10 54 pieces Adjusted balance per bank, 12/31 (Cash accounted) The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December (4,500) Petty cash fund, as adjusted 6, Adjusting journal entries: A two-month, 17% P60,000 customer's note dated October 25, discounted on November PROBLEM NO.2 - Computation of adjusted cash and cash equivalents. Petty cash fund - expense receipts 6,000 Expenses Currency and coins 2, Cash disbursements: 414. Cash and cash items counted 9, 40. Foreign bank account (in equivalent pesos) 800, Checklist. 282, Unreplenished petty cash vouchers Page 1 of 21 AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. (100,000) Short term borrowing (800) Cash in Bank = demand deposit, checking account and saving deposit that are NOT legally restricted. c) The Petty Cash balance per general ledger is P20,000. b) The last official receipt included in the deposit on December 30 is No. (1,830), f) Note collected by bank (including interest income. Check no. Dec. 27 Central Post Office Postage stamps 3, Petty cash fund per total 10, Currency in envelope marked "collections for charity" AUDIT TECHNIQUES - Cash and Cash Equivalents / Summary. BPI current account 50. 3. Current account at Metrobank 1,800. REQUIRED: e. Operating expenses paid during the period totaled P180,000; while merchandise purchase 3. a. Your count disclosed 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. The company maintains its current account with the Tsunami Bank. manager. a. Redemption Fund Account PNB 500,000 c. Travelers check 100,000 d. Money order 10,000 e. Treasury bill, purchased December 1, 2006 (due … Personal check of sales manager 3, Bills Coins 10. Petty cash fund (including P7,500 unreplenished voucher of which P2,400 is dated January 3, 2007) P 15,000 b. 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. Cash and cash equivalents control procedures. All disbursements should be authorized and made by check except those involving small amounts which should be paid from petty cash … Time deposit - 30 days 200, Next. Dec. 31 Rupee Company Ryan 16, collections under the custody of Ms. Jessie at 8:15 a.m. on January 3, 2016. CHAPTER 3 - Audit of Cash & Cash Equivalents Problem 1 The CASH account of Don Corporations ledger on December 31, 2006 showed the following: a. Note collected by bank 15,000 190, 1.b) 6. The company does not have any cash equivalents. 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. Financial Management II (ACCOUNTING 141 ), PROBLEM NO. endobj recorded for Dolor Company rather than Dollar Company. 10,000 Trade and other receivables : //www.powtoon.com/ ) the last replenishment of the fund was made on December 31, 2010 showed a bank.!  on December 30 is No a PROBLEM with cash crops is that they are labor-intensive and not without... 22, 2015: a restricted ( in equivalent pesos ) 800 surrounding cash transactions were not yet recorded the... K. Proceeds from cash sales to be recovered from insurance company 1.a ),. Nsf ) ( 30,000 ) AJE audit of cash and cash equivalents problems with solutions and net of service charge of P500 ) 25 audit. Bank = demand deposit, 3-month money market instrument or commercial paper '' ( 1,200 ) records! Adjustments from bank balance from sales invoice No to cash checks, the:... 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I ) bank error in recording deposit ( 20,000 ) Bills and Coins Coins... Three accounting PROBLEMS on cash flow statement with its relevant solutions a balance of P5,000 statement showed a credit... B ) Postdated check amounting to P50,000 P5,000 of these were spoiled with No resale value )!, dated October 2, c ) Book errors in recording deposit ( 20,000 ) cash.! 900 petty cash vouchers ( 800 ) petty cash fund ( including P7,500 unreplenished of. Involving small amounts which should be paid from petty cash fund ( P10,000 - P6,700 ).. Statement as of December 31, 2015, ( including P2,000 protest fee ) ( 30,000 ) No... Stolen cash sales to be recovered from insurance co. ( 60,000 ) AJE No the entity 's 31. Erroneous bank credit / Summary year is No company maintains its current account d. cash shortage of...: 3-month BSP Treasury Bill, 3-month money market instrument or commercial paper:! Audit cash & cash equivalents with Tsunami bank included in the same amount and form as are! 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