Determine the following as a result of your audit: (Please show your solution) 1. Determine the amount of cash shortage or overage on petty cash fund, if any: 2. How much is the total cash shortage or overage? 3. How much is the adjusted balance of petty cash fund as of December 31?

CASE 3 In connection with the audit of the financial statement of Prusia Inc. for the year ended December 31, 2020, you performed a surprises count of the petty cash fund and un-deposited collections under the custody of Ms. Queen at exactly 10:15 in the morning of January 12, 2021. Your count disclosed the following: Bills Coins P100 180 pieces P1.00 3,950 pieces 50 550 pieces 0.50 5,400 pieces 20 580 pieces 0.25 580 pieces Unused postage stamps - P1,450 Page 2 Checks Date Dec 30 Dec 30 Dec 31 Dec 31 Dec 31 Dec 31 Payee Cash Prusia Inc. Prusia Inc. Prusia Inc. Prusia Inc. Danbury Corp Drawer Prusia Inc. (replenishment) Anthony Eloise, sales manager Penelope Benedict Prusia Inc. Amount P2,000 222,000 4,600 180,000 256,000 500,000 Date Dec 20 Dec 20 Dec 22 Dec 23 Dec 27 Dec 29 Dec 29 Jan. 2, '21 Jan. 4, 21 Pavee Fitness First MilkDonalds Foods Kailan Gen. Merchandise Thanos, Sales Manager Post office Messengers Mac express Today Merchandise Trey Taxi Description Amount Zumba fee P1,000 Meals during meeting 200 Bond Paper and Scissors 800 Cash advance for trip to Davao 40,000 Postage stamps 4,500 Transportation 2,500 Machinery Repair 4,500 Air fresher 1,000 Transportation 1,200 Other items found in the cash box Two pay envelopes with note outside "unclaimed salaries of P55,000 which had been opened and the contents aggregating P50,000 had been found inside the envelope. b. Sales manager liquidation report for his London trip. Cash advance received P40,000 Less: Hotel accommodation P30,000 Air fare 2,000 Cash given to Star Lord, salesman 3,000 35.000 Balance P5,000 c. Accounted for as follows: Cash returned by Star Lord to the sales manager P400 Personal check of sales manager 4,600 Total P5.000 Additional information: d. The custodian is not authorized to encash checks. e. The last official receipt included in the deposit on December 30 is No. 3051 and the last official receipt issued for the current year is No. 3055. The following official receipts are all dated December 31, 2020. O.R. No. Amount Form of Payment 3052 P71,000 Cash 3053 222,000 Check 3054 50,000 Cash 3055 256,000 Check f. The petty cash balance per general ledger is P60,000. The last replenishment of the fund was made on December 20, 2020