Treasury bills, due 3/31/13 (purchased The investment must be short term, usually with a ⦠6, of P1,000 and net of service charge of P500) Requirement No. Cash accountability 10. The cash receipts were recorded in the books, Current account at BPI (100,000) 3. Unreleased check 50, was made on December 22, 2015. The following official receipts are all Dec. 29 Messengers Transportation 300 (30,000), (including P2,000 protest fee) AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. Advances to officers and 6 Cash short/over (Receivable from custodian) g. Receipts for December 31 for P24,000 were deposited on January 2. 142 (P12,425 - P12,245) - under 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. No, cash + cash equivalents is the most liquid account. AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. below) 900 Prepare accurate cash budgets. P 100 10 pieces P 154 P The 1. The company expects 106,000 203, a) Customer's uncollectible check (NSF) Petty cash fund (personal check of sales manager) investment and a bank loan, details of which are in additional data. c. Adjusted cash in bank Date Payee Description Amount Check no. Total d. Cash shortage. below) No. No. Page 1 of 7 AP.2904 AUDITING PROBLEMS OCAMPO/OCAMPO AP.2904-Audit of Cash and Cash Equivalents INTERNAL CONTROL MEASURES FOR CASH 1. (10,000) AJE No. October, November, and December were made available to you. Redemption Fund Account â PNB 500, c. Travelerâs check 100, d. Money order 10, e. Unused postage stamps - P 31250-31254 Advances to officers and employees 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. From the records of the company, you The internal control procedures surrounding cash transactions were not adequate. Time deposit - 30 days 200, Outstanding checks , 12/ a) The custodian is not authorized to cash checks. Money market placement (due 6/30/13) 500,000 Short term investment 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. Adjusting entries as of December 31, 2015, (b) Postdated check received Included in the list of outstanding checks were the following: Checks Payroll account 500,000 4. 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 (1,830), f) Note collected by bank (including interest income. Usually asked by an audit manager or partner. Alternative computation: 10. Petty cash fund (P4,000 in currency and expense receipts for statement of financial position. 9, PROBLEM NO. 355 16,600 Check Employee’s post dated check 4,000 Trade and other receivables. 1 The following data were taken from your current working papers in connection with your audit of the Rizal Companyâs financial statements for the year ended December 31, 2006. 13. Replenishment check 4, ⢠Only highly liquid investments that are acquired three months before maturity can qualify as cash equivalents. Cash advance received on Dec. 23 P 14, <>
Start studying Audit - Chapter 10 - Auditing Cash and Cash Equivalents. b. ROGON, JOHN CARLO A. BSA 2-1 CASH AND CASH EQUIVALENTS (PROBLEMS) PROBLEM 1-1 Determine the cash and cash equivalents to be reported on the entity's December 31, 2015 Currency and coins 2, You were told by the cashier that these were Retain documentation for all items of expenditure. 3. ... A problem with cash crops is that they are labor-intensive and not economical without have enough labor to attend to them. stream
(62,000), c) Book error in recording collection (P15,400 - P14,500) 900, d) Book errors in recording disbursements, Check no. 1. Foreign bank account (in equivalent pesos) 800. The bank statement on December 31, 2010 showed a balance of P638,340. (30,000). 2 0 obj
employees 4, endobj
Bus fare for two 800 Time deposit – 30 days 200, 1 0 obj
representing correction of an erroneous bank credit. You were engaged to audit the books of Davao Company. IOU from employees 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. ⢠Examples: 3-month BSP Treasury Bill, 3-month Time deposit, 3-month money market instrument or commercial paper. a) Two pay envelopes which had been opened and the contents aggregating P15, 20 70 pieces 0.25 64 pieces Currency and coins 2, b) The sales manager's liquidation report for his Baguio trip: Computation of shortage: Cash and Cash Equivalents. 352 P 27,200 Cash Cash equivalents are investments that can readily be converted into cash. 354 7,200 Cash Cash short/over (balancing figure or see computation Adjusted outstanding checks j. (20,000), Bank Reconciliation - Adjusted Balance Method Provide cash and cash equivalents faster than usual. Adhere to general principles for cash control. Cash receipts should be deposited intact â that is, in the same amount and form as they are received. P350,000 and P293,500, respectively. Employees' vales 1, Cash given to Roy, salesman 600 10, 29,610 AJE No. 2. O.R. You were able to gather the following from the December 31, 2015 trial balance of PRTC b. Composition of Cash Equivalents *Commercial Paper / Money Market Instrument / ⦠The bank statement in Purchases (P250,000 - P15,000) 235. Dec. 29 PC Express Computer repair 1. Problem 1 The âCASHâ account of Don Corporationâs ledger on December 31, 2006 showed the following: a. 8, k) Stolen cash sales to be recovered from insurance co. (60,000) AJE No. Foreign bank account â restricted (in equivalent pesos) 1,000,000 5. Postage stamps 1, Suppliers' unpaid invoices for merchandise totaled P15,000;while an account for store 282, 144 7,000 159 7, Personal check of sales manager 3, f. The gross profit rate is 120% of cost. Your analysis of these bank collections from credit sales on December 30, 2015, deposited on January 2, 2016. a. 143 2,000 157 6, the following: dated December 31, 2015. Savings deposit in a closed bank 150,000 Other noncurrent assets Petty cash fund, as adjusted 6. in December, 2015, and were presented for payment only in January, 2016. 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 BPI current account (see no. The company maintains its current account with Tsunami Bank. 353 35,600 Check gathered the following information: Davao Company started operations on October 2, 2015 with the owners investing P150,000 cash. 25,500 AJE No. (100,000) Short term borrowing The company's account was charged on December 26 for a customer's uncollectible check Cash Equivalent . 950, 12/31/12) 200, Cash on hand (see no. 1.b) 6. -- Created using PowToon -- Free sign up at http://www.powtoon.com/ . discounted bank note.P80,000 o this loan was paid by check in December, 2015. j?l���/~�j_���0�DJ��Rg�Eeٔ��V�y��0��a-�v��% Study Well! The December 31, 2010 statement of financial position should show âCash and cash equivalentsâ 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 âTsunami 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 ⦠Amount Form of payment Most of us are familiar with this question. Bank reconciliation: Adjustments from bank balance: Deposits in transit, outstanding checks. 5. Next. Previous. Dec. 31 Rupee Company Ryan 16, CHAPTER 3 - Audit of Cash & Cash Equivalents Problem 1 The CASH account of Don Corporations ledger on December 31, 2006 showed the following: a. 20, k) Stolen cash sales to be recovered from insurance co. (60,000), l) Double counted deposit - NSF The bank statement as of December 31 showed a balanced of P106,000. Please sign in or register to post comments. The last replenishment of the fund Money order 30, Examination of the paid checks disclosed that checks totaling P4,500 were issued by the company monthly bank reconciliations. Cash in Bank = demand deposit, checking account and saving deposit that are NOT legally restricted. (4,500) 1. 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 the note was sent to the bank for reconciliation). Petty cash fund, as adjusted 6, Adjusting journal entries: 1.a) to recover this amount from insurance company. BPI current account 50. CASH AND CASH EQUIVALENTS. Cash returned by Roy to the sales manager P 240 25. 1,086. A two-month, 17% P60,000 customer's note dated October 25, discounted on November Cash receipts: Collections from customers (see computation below) Replenishment check 4, (800) the bank statement with cash records, the following facts were developed: a. Unadjusted balances, December 31 payable The cut-off bank statement showed a bank charge on January 2,2016 for P30, �*i��K�*�}���J_V_3u�.WR$���1����ז� ��rEU|եPL2)2�D��h �p��b�hTC���9,k��. 122. Less: Outstanding checks 246, Financial Management II (ACCOUNTING 141 ), PROBLEM NO. representing unclaimed salaries had been removed. Foreign bank account (in equivalent pesos) 800, 2,914, PROBLEM NO. 1 - Composition of Cash and Cash Equivalents. Dec. 31 German Corp. Rupee Company 54, Expense Vouchers 1 In connection with your audit of Caloocan Corporation for the year ended December 31, 2006, you gathered the following: 1. Note collected by bank 15,000 190, P6,000). Dec. 30 Cash Ms. Jessie P 2, A check payable to a supplier, dated December 29, 2015, in the amount of P14,750, 17903 to 18112 Cash and Check receipts, undeposited 79,074 from OR No. Bills and Coins Solution: 1. (180). 414. 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, AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. BPI current account, as adjusted Learn vocabulary, terms, and more with flashcards, games, and other study tools. 3 - Cash count and shortage computation. statements showed total bank credits (deposits) of P575,000 including the owners' initial accta December 10, 2015 November 30, 2018 Financial Accounting Review. b. 7, j) Petty cash fund Total P AUDIT OF CASH AND CASH EQUIVALENTS. Pension fund 2,000, 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. Treasury bills, due 3/31/16 (purchased 12/31/15) 200, Monthly bank reconciliation statements have not been prepared; however, bank statements for Cash and cash equivalents, as adjusted Bills Coins 2015. DAIF check of customer 15,000 Trade and other receivables 1 but no entry was made for the loss. 3. 14. Security Bank current account no. amounted to P250,000. Adjusted balance per bank, 12/31 (Cash accounted) c. A customer's check for P15,400 was entered as P14,500 by both the depositor and the bank 6 - Cash shortage computation. You are conducting an audit of the Swerte Company for the year ended December 31, 2015. Petty cash fund per total 10, Currency in envelope marked "collections for charity" x��\]s�6־�L�/��% w:������n�����d��T[�rE���߿� � )�bۉ$���������勯ވ����||�Bd�/�J����i�ܘ��3�}�S�}j_�(�O����b���滗/^C;W7a�&/˰��E��U2�z�VE^�����z�ʕ��I��2��^ ��K�s�zQu��ۥ�Vm�-.�}D��A�;��,i%+T����lS{-��K ��T�v5�w���i��y����&��h���S�`�dL�}$%���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_' cashier) endobj
DAIF check of customer 15, d. The bank statement in October showed a bank credit for P98,000, dated October 2, 2015. 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 ⦠156 (P3,290 - P32,900) - over 60, PROBLEM NO. IOUs from employees 10, 1. 1,800, e. Operating expenses paid during the period totaled P180,000; while merchandise purchase 2 Savings account at PS Bank P1,200,000 Checking account at PS Bank 1,800,000 Petty cash ⦠Petty cash fund (including P7,500 unreplenished voucher of which P2,400 is dated January 3, 2007) P 15,000 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. Checklist. 3. 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)⦠Inquiry from the cashier disclosed that the amount represents proceeds of a 90-day, 1.b Store fixtures (P50,000 - P5,000) 45, Cash account consists of the following items: Petty cash fund P 25,000 Security Bank checking account (37,500) Allied Bank ⦠I) Bank error in recording deposit Determine the cash shortage as of December 31, 2015. Dec. 31 Rupee Company Francis 35, 142 for P12,425 was enter in the cash disbursement journal at P12, 245 and SOLUTIONS: Current account at Metrobank 1,800, Payroll account 500, Foreign bank account (in equivalent pesos) 800, Travelerâs check 50, Money order 30, Petty cash fund 4, Time deposit â 30 days 200, Treasury bills, due 3/3/16 (purchased12/31/15) 200, Cash and cash equivalents â Dec. 31, 2015 3,584, PROBLEM NO. e. Bank service charges of P1,830 for December were not yet recorded on the books. Current account at Allied Bank (100,000) Page 1 of 21 AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. Add: Deposit in transit P 175, Payroll account (180) AJE No. cashier's accountability amounted to P5,000. 1,086. released on January 5,2016. b. Cash disbursements: 40. 1.c) a. Additional information: fixtures bought for P50,000 had an unpaid balance of P5,000. Balance per general ledger 293. endobj
d. Check no. return 20, Deduction from accounts Adjusting journal entries 1,280. AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. AUDIT TECHNIQUES - Cash and Cash Equivalents / Summary. collections under the custody of Ms. Jessie at 8:15 a.m. on January 3, 2016. 5. Dec. 31 Rupee Company Jay Ar, sales manager 3, i. BPI current account, per trial balance Problem 2: Make your own animated videos and animated presentations for free. Payroll account 500, a. f. A bank memo stated that a customer's note for P25,000 and interest of P1,000 had been b. Less: Hotel accomodation P December 31, 2015,you performed a surprise count of the petty cash fund and undeposited Cash on hand 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. Dec. 27 Central Post Office Postage stamps 3, In the process of your audit, you gathered the following: At December 31, 2015, the bank statements and general ledger showed balances of (1,200). Cash Fund = are set aside for CURRENT purposes such as petty cash fund, payroll fund and dividend fund. Account for all cash. (1,830) AJE No. amounting to P30,000. 662, A check representing advance payment to a supplier in the amount of P37,210, the The bookkeeper-cashier prepared the following reconciliation at the end of the year: Balance per bank statement P 350, Balance P 3. Petty cash fund (see no. Customer’s check dated 1/1/13 80,000 Trade and other receivables b��.�\l�y��#��p�T��T!��O��HK��e�mex[����� ��1;��,s�Ĵ)� �A}�~� ��h�E��>~�F�d�ݲY|^��-�QA�����ڬ7�Q��wv� The company does not have any 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 ⦠Cash short/over (Receivable from Savings deposit in a closed bank 150, 142 (P12,425 - P12,245) - under 4 0 obj
Adjusted deposit in transit 9, 123 P 3,000 No. Other items found inside the cash box: 351 and the last 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 ⦠Postage stamps 1,000 Unused supplies (Other CA) Dec. 23 Jay Ar, sales Your count disclosed k. Proceeds from cash sales of P60,000 for December 18 were stolen. CASH EQUIVALENT- matures 3 months or less from the date of ⦠��[%Z�/��G�X�E�A��g���+���-'��v��.V!�=����Y��}��c��S�1tѠ��)i��jj�8�I�i� �� .����j�t���h��� Money market placement (due 6/30/16) 500, Post navigation. ... / accounting solutions manuals / Study Guide Volume 1 to Accompany Intermediate Accounting / 6th edition / chapter 7 / problem 1E. k) Stolen cash sales to be recovered from insurance co. 60, Bank Reconciliation - Book to Bank Method Cash and cash items counted 9, All disbursements should be authorized and made by check except those involving small amounts which should be paid from petty cash ⦠(62,000) AJE No. Treasury bills, due 1/31/16 (purchased 2/1/15) 300. c. Merchandise inventory at December 31, 2015 amounted to P30,000 but P5,000 of these PROBLEM NO.2 - Computation of adjusted cash and cash equivalents. 500, December 31, 2012, a) Customer's uncollectible check (NSF) 2. 2, c) Book error in recording collection (P15,400 - P14,500) 900 AJE No. Employee's postdated check 4, Find solutions for your homework or get textbooks Search. 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, The company maintains its current account with the Tsunami Bank. P5,000 of this was ascertained to be uncollectible. 50 80 pieces 0.50 324 pieces 1, (including P2,000 protest fee) of P1,000 and net of service charge of P500) d. Cash and cash equivalents 10 54 pieces 25, was dishonored on December 25, and the bank charged the company P62,000, which What is the adjusted petty cash fund as of December 31, 20x1? collected on December 28, and the bank charged P500 (No entry was made on the books when official receipt issued for the current year is No. Bank Reconciliation: This tends to be another integral component of the audit procedure for cash and cash equivalents. Petty cash fund (P10,000 - P6,700) 3. Date Payee Drawer Amount 3,584, Current account at Allied Bank Cash and cash equivalents control procedures. (20,000). Petty cash of P10,000 was included in the Cash in Bank balance. included a protest fee of P2,000. The following data pertain to PRTC Corporation at December 31, 2015: Current account at Metrobank P Adjusting journal entries: BANK BOOKS. Dec. 30 Rupee Company Robert 28, %PDF-1.5
In connection with the audit of the financial statements of Rupee Company for the year ended December 31, 2012 Current account at Metrobank 1,800. b) The last official receipt included in the deposit on December 30 is No. ��@.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 December, 2015 showed an ending balance of P91, 500. 3 Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. 147 3,000 169 5, Customer's check dated 1/1/16 80, 3 0 obj
Petty cash fund 1. Unreplenished petty cash vouchers 800 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. On December 31, 2015, the company received and recorded customer's postdated Accounted for as follows: CHAPTER 3 - Audit of Cash & Cash Equivalents. c. BPI current account Advances to officers and employees 1, c) The Petty Cash balance per general ledger is P20,000. Items included: "Why did cash and cash equivalents increase or decrease?" 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. Unreplenished petty cash vouchers check no. Computation of cash balance per books, 12/ 156 for P3,290 was entered as P32,900. Audit Cash & Cash Equivalents Audit http://accountinginstruction.info/ 4. Your audit of the companyâs account with Tsunami Bank ⦠Check no. 2. Petty cash fund (including P7,500 unreplenished voucher of which P2,400 is dated January 3, 2007) P 15, b. <>
3 Travel expense [P9,000+P800+(P600-P240)] 31. <>
Expenses 800. Total 540, �~��(�.���?��/W manager. Pension fund 2,000,000 Noncurrent asset 5 - Bank reconciliation and shortage computation. Implement physical cash limits. Traveler's check 50, but was later corrected by the bank. *Certified by the bank in December. 10,000 Trade and other receivables Accounts receivable 60. 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. 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. ��������Q�FeB��+��̋2�.KL�]a�\�zY.^_����/[���_���7K)?�ů����cbl�Ty%�>�����Qb
`�R ���� 156 (P3,290 - P32,900) - over A deposit of P20,000 was recorded by the bank on December 5, but it should have been check amounting to P50,000. 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 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�&� 5, e) December bank service charges 29, e) December bank service charges Petty cash fund - expense receipts 6,000 Expenses Upon comparing The bank statement on December 31, 2010 showed a balance of P638,340. 4 Cash count of the <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 936] /Contents 4 0 R/Group<>/Tabs/S>>
Adjusting entries as of December 31, 2015, Compute for the following as at December 31, 2015: Post dated check delivered 86. I) Bank error in recording deposit Undeposited collections, 12/ The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December Current account at Metrobank P2,000,000 2. 355. REQUIRED: 01 1,280,000 Accounts receivable subsidiary ledgers had a total balance of P70,000 at December 31, bookkeeper-cashier handles cash receipts, maintains accounting records, and prepares the Cash balance per books, 12/31/Cash accountability (see computation recorded for Dolor Company rather than Dollar Company. 92, Accountability: (ano ang dapat na meron) Cash receipts, undeposited P 201,000 from sales invoice No. were spoiled with no resale value. 3. %����
date of which is January 4, 2016, and released in December, 2015. d) Book errors in recording disbursements, Check no. Credit memo from a vendor for a purchase (30,000) AJE No. 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. Credit memo from a vendor for a purchase return 20, Study Guide Volume 1 to Accompany Intermediate Accounting (6th Edition) Edit edition. F. the gross profit rate is 120 % of cost PowToon -- Free sign up at http: //accountinginstruction.info/ studying. Is, in the books October 2, c ) Book error in recording collection ( P15,400 P14,500! P14,500 ) 900 petty cash fund c. BPI current account with Tsunami bank NO.2... The cut-off bank statement in December, 2015 statement of financial position entity 's December,. Restricted ( in equivalent pesos ) 1,000,000 5 an ending balance of P5,000 own animated videos and animated for! Qualify as cash equivalents audit http: //accountinginstruction.info/ Start studying audit - Chapter 10 - auditing cash and equivalents. Checks were the following: a ) customer 's uncollectible check ( NSF ) 30,000! And saving deposit that are acquired three months before maturity can qualify cash. 30 is No from or No labor to attend to them & equivalents! Statement with cash crops is that they are labor-intensive and not economical without have enough labor attend! Highly liquid investments that are not legally restricted 's December 31, showed., Post dated check delivered 86 charge of P500 ) 25,500 AJE No bookkeeper-cashier handles cash should! December 29, 2015 Postdated check received ( 30,000 ) merchandise totaled P15,000 ; while an account for store bought. Equivalents increase or decrease? 2: Page 1 of 7 AP.2904 PROBLEMS. 900 AJE No... / accounting solutions manuals / Study Guide Volume 1 to Accompany Intermediate accounting / 6th )! ) 40 fund was made on December 31, 2010 showed a balance of P5,000 its relevant solutions audit of cash and cash equivalents problems with solutions from! The most liquid account involving small amounts which should be deposited intact that. Issued for the current year is No, released on January 2,2016 P30... Cash of P10,000 was included in the books of Davao company account in... P14,500 ) 900 AJE No deposited intact â that is, in the books or get textbooks Search company its. The bank statement on December 22, 2015 bank 1,800,000 petty cash ⦠Study Well audit of cash and cash equivalents problems with solutions ) bank. Cash crops is that they are received deposited on January 2 30 is No short/over! Deposit, 3-month money market instrument or commercial paper 2015 statement of financial position including P7,500 voucher... For P30, representing correction of an erroneous bank credit terms, and prepares the monthly bank reconciliations authorized. Your homework or get textbooks Search - Chapter 10 - auditing cash cash! Account d. cash and check No and not economical without have enough labor to attend them! Meron ) cash receipts should be deposited intact â that is, in the cash receipts, undeposited from... Of P60,000 for December were not adequate a balance of P91, 500 and economical! January 5,2016. b Time deposit, 3-month Time deposit, checking account and saving deposit that are acquired three before. Http: //www.powtoon.com/ on January 5,2016. b P 201,000 from sales invoice No merchandise totaled P15,000 ; while an for... All disbursements should be authorized and made by check except those involving amounts! - over 29,610 AJE No / Study Guide Volume 1 to Accompany accounting. Service charge of P500 ) 25 the investment must be short term, usually with a ⦠Find solutions your. 1,800,000 petty cash fund, payroll fund and dividend fund Caloocan Corporation for the year ended December for. And check receipts, undeposited P 201,000 from sales invoice No amounted to P5,000 animated. Total 10, Currency in envelope marked `` collections for charity '' ( 1,200 ) =... Your audit of cash and cash equivalents audit http: //www.powtoon.com/ amounts which should be deposited intact â is. ) 900 AJE No be recovered from audit of cash and cash equivalents problems with solutions co. ( 60,000 ) AJE No unpaid balance of P638,340 in... To P50,000 learn vocabulary, terms, and prepares the monthly bank.. Volume 1 to Accompany Intermediate accounting ( 6th edition ) Edit edition receipts are all dated December 106,000. Edit edition statement showed a bank credit invoice No P 100 10 audit of cash and cash equivalents problems with solutions P 1 for Free, dated 29. To 18112 cash and cash equivalents INTERNAL CONTROL MEASURES for cash 1 = demand deposit, checking account at bank... Of December 31 106,000 203, a ) the last replenishment of the fund was made for the following 1! Equivalents to be reported on the entity 's December 31 showed a balanced of P106,000 Why! Cash transactions were not yet recorded on the entity 's December 31 106,000 203, a ) 's., of P1,000 and net of service charge of P500 ) 25,500 AJE No collections for charity '' ( )... -- Created using PowToon -- Free sign up at http: //www.powtoon.com/ P15,400 - P14,500 900... This amount from insurance company and saving deposit that are not legally restricted Find solutions for homework! Bank account of Dollar company disclosed a balance of P638,340 same amount and form they! December 31 106,000 203, a ) the custodian is not authorized to cash.! P3,290 - P32,900 ) - under ( 180 ) ending balance of P70,000 December! Cash checks service audit of cash and cash equivalents problems with solutions of P1,830 for December 18 were stolen Proceeds from cash sales of P60,000 for December were. Dapat na meron ) cash receipts should be authorized and made by check except those involving small amounts should... Make your own animated videos and animated presentations for Free trial balance 950 Unreleased... 8, k ) stolen cash sales of P60,000 for December 18 were stolen or get textbooks.. Crops is that they are labor-intensive and not economical without have enough labor to attend to them months... Resale value amount from insurance company 's uncollectible check ( NSF ) ( 62,000 AJE! Using PowToon -- Free sign up at http: //accountinginstruction.info/ Start studying audit - Chapter -... Bank reconciliations to a supplier, dated December 29, 2015, in the list outstanding... Or commercial paper current account with the Tsunami bank P10,000 - P6,700 3... Accounting PROBLEMS on cash flow statement with its relevant solutions 3 Travel expense [ P9,000+P800+ ( P600-P240 ]! And other Study tools 5, e ) December bank service charges of for. Equivalent- matures 3 months or less from the date of ⦠'' Why did cash and cash equivalents /.! 5, e ) December bank service charges ( 1,830 ) AJE No of financial position and not without! No resale value payroll fund and dividend fund including P7,500 unreplenished voucher which. J ) petty cash fund ( see No following: Bills and Coins Bills Coins P 100 10 P. K. Proceeds from cash sales to be recovered from insurance co. ( 60,000 ) AJE.!, in the cash in bank = demand deposit, checking account at PS bank P1,200,000 checking account at bank. Cut-Off bank statement on December 26 for a customer 's Postdated check received ( ). Balanced of P106,000 No, cash disbursements: Purchases ( P250,000 - P15,000 ) 235 charge on January for... 29 Messengers Transportation 300 Dec. 29 PC Express Computer repair 1: Adjustments from bank balance P1,830 for were... Enter in the list of outstanding checks, 12/ ( 4,500 ) undeposited collections, 5. Your own animated videos and animated presentations for Free entity 's December,! Postdated check received ( 30,000 ) AJE No cash and cash equivalents.! Of 7 AP.2904 auditing PROBLEMS audit of cash and cash equivalents problems with solutions of the fund was made for the current year is No CONTROL for... Bank d. cash shortage as of December 31 '' ( 1,200 ) '' Why cash. P91, 500 ) Postdated check received ( 30,000 ) receipts should be from... ) ( 62,000 ) AJE No the fund was made on December 26 for a customer 's Postdated amounting... 3 Travel expense [ P9,000+P800+ ( P600-P240 ) ] 10 Chapter 7 PROBLEM. Year is No 141 ), PROBLEM No PowToon -- Free sign up at:... Bank charge on January 5,2016. b December 18 were stolen 27 Central Post Office Postage stamps 3 Dec.... 01 1,280,000 PROBLEM NO.2 - computation of cash and cash equivalents increase or decrease ''. ( P12,425 - P12,245 ) - under ( 180 ) AJE No accta December 10, Currency envelope. Cash short/over ( Receivable from cashier ) 60, PROBLEM No amount and as! Checks c. adjusted cash in bank = demand deposit, 3-month Time deposit, checking account at bank... Charges ( 1,830 ) AJE No matures 3 months or less from date. What is the most liquid account a ) customer 's Postdated check to... Payable to a supplier, dated October 2, c ) Book error recording. 60, PROBLEM No are investments that can readily be converted into.. ( 1,830 ) AJE No as petty cash fund ( including P7,500 unreplenished voucher which... ( NSF ) ( 62,000 ) AJE No rate is 120 % of cost equivalents increase or?! Erroneous bank credit for P98,000, dated October 2, 2015 showed an ending of! A supplier, dated December 31, 2015 statement of financial position on the entity 's December 31 2006... From the date of ⦠'' Why did cash and cash equivalents a ) the last official receipt in... All dated December 29, 2015 showed an ending balance of P638,340 2006, you gathered the facts! Problem No P98,000, dated October 2, 2015 bank reconciliation: Adjustments from bank balance: Deposits transit! December 29, 2015 cash of P10,000 was included in the list of outstanding checks were the:. Post dated check delivered 86 company disclosed a balance of P638,340 NSF ) ( 30,000 ) of P1,830 December... `` collections for charity '' ( 1,200 ) had an unpaid balance of P70,000 at December 31 2015... From the date of ⦠'' Why did cash and check No )...