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CASE 1. The cash account in the ledger of lla ng-llang Company had a balance of P105,600 at December 31, 2014. An examination of the

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CASE 1. The cash account in the ledger of lla ng-llang Company had a balance of P105,600 at December 31, 2014. An examination of the account, however disclosed the following: I The sales book was left open up to January 5, 2015, and cash sales totaling P15,000 were considered as sales in December 2014. Checks of P9,300 in payment of liabilities were prepared before December 31, 2014, recorded in the books, but not mailed or delivered to the payee. Post-dated checks totaling P7,800 are being held by the cashier as part of cash. The company's experience shows that post- dated checks are eventually realized. Customer's check for P1,500 deposited with but returned by the bank, "NSF", on December 27, 2014. Return was not recorded in the books. The cash account includes P40,000 earmarked for the purchase of a mini-computer which will soon be delivered. 1. The cash balance to be shown on the balance sheet on December 31, 2014 should be? CASE 2. A count of the Petty Cash Fund on January 5, 2015 for t general ledger and showed the following composition: Coins and currency P 2,900 Paid vouchers: Transportation P 600 Gasoline 400 Office supplies 500 Postage stamps 300 Due from employee 1,200 3,000 Manager's check returned by bank marked "NSF" 1,000 Check drawn by company to the order of petty cash custodian 2,700 Unused postage stamps 300 Petty cash receipt voucher for a receipt of excess of travel advance by an employee 500 2. What is the petty cash shortage? What is the adjusted petty cash balance as of December 31, 2014? CASE 3. Ral Company reported that the checkbook balance on December 31, 2013 was P5,000,000. In addition, the entity held the following items in its safe on that date: Check payable to Ral, dated January 2, 2014 in payment of a sale made in December 2013, not included in December 31 checkbook balance P 2,000,000 Check payable to Ral, deposited December 15 and included in December 31 checkbook balance, but returned by bank on December 30 stamped "NSF". The check was redeposited in January 2, 2014 and cleared by the bank on January 9, 2014. 500,000 Check drawn on Ral's account, payable to a vendor, dated and recorded in Ral's books on December 31, 2013 but not mailed until January 10, 2014 300,000 4. What is the adjusted cash balance? CASE 4. In connection with your audit with C Corp. for the year ended December 31, 2014, you gathered the following data: Current account at Metrobank P 2,000,000 Currency account at BPI 100,000) Payroll account 500,000 Foreign bank account - restricted (in peso equivalent) 1,000,000 Postage stamps 1,000 Employee's post-dated checks 4,000 IOU from controller's sister 10,000 Credit memo from a vendor for a purchase return 20,000 Traveler's check 50,000 NSF check 15,000 Money order 30,000 Petty cash fund (P6,000 is expense receipts; P4,000 in currency) 10,000 T-bills , due 03/30/15 (purchased 12/29/14) 200,000 T-bills , due 01/31/15 (purchased 02/01/14) 300,000

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