Ms./Mr. *State Your Name*, as the Auditor of MaMaMoBlue Co. you noticed that the accountant is in the process of preparing the company's financial statements for the year ended December 31, 2020. He is trying to determine the correct balance of Cash and Cash equivalents to be reported as a current asset on the statement of financial position. That's why you conduct your audit simultaneously; you observed and gatheredthefollowing information to be usedfor your Audit of Cash and Cash Equivalents accounts.

Information No. 1

MaMaMoBlue Co. maintains its current account with the BPI. The bank statement on December 31, 2020 showed a balance of P638,340. Your audit of the company's account with BPIdisclosed the following:

1. A check for P22,500 received from a customer whose account is current had been deposited and then returned by the bank on December 28, 2020. No entry was made for the return of this check. The customer replaced the check on January 15, 2021.
2. A check for P5,720 was cleared by the bank as P7,520. The bank made the correction on January 2, 2021.
3. A check for P3,500 representing payment of an employee advance was received and deposited on December 27, 2020, but was not recorded until January 3, 2021.
4. Post dated checks totaling P67,300 were included in the deposits in transit. These represent collections of current accounts receivable from customers. The checks were actually deposited on January 5, 2021.
5. Various debit memos for drafts purchased for payment of importation of equipment totaling P230,000 were not yet recorded. These purchases were previously set up as accounts payable. Said equipment arrived in December 2020.
6. Interest earned on the bank balances for the 4th quarter of 2020, amounting to P1,950 was not recorded.
7. Bank service charges totaling P1,260 were not recorded.
8. Deposit in transit and outstanding checks at December 31, 2020 totaled P136,250 and P276,380, respectively.

Information No. 2

Various expenses from the company's imprest petty cash fund dated December 2020 totaled P16,250, while those dated January 2021 amounted to P5,903. Another disbursement from the fund dated December 2020 was a cash advance to an employee amounting to P3,500. A replenishment of the petty cash fund was made on January 8, 2021.

Information No. 3

MaMaMoBlue Co.'s trial balance on December 31, 2020 includes the following accounts:

1. Cash in bank - BPI= 748,320
2. Cash in bank - BDO (restricted account for plant expansion, expected to be disbursed in 2021) = 700,000
3. Petty cash fund =30,000
4. Time deposit, placed December 20, 2020 and due March 20, 2021=1,000,000
5. Money market placement - Eastwest Bank =4,000,000

Answer the following questions in the succeeding tabs.

1. Adjusted Petty cash fund balance for December 31, 2020?

a. 30,000

b. 10,250

c. 4,347

d. 24,097

2. Petty cash shortage as of December 31, 2020

a. 5,903

b. 0

c. 4,347

d. 3,500

3. Adjusted BPI balance on December 31, 2020?

a. 748,320

b. 432,710

c. 429,110

d. 500,010

4. The entry to adjust the Cash in bank - BPI account should include a debit to

a. Accounts receivable for P86,300

b. Accounts payable for P228,200

c. Accounts receivable for P89,800

d. Interest expense for P1,950

5. The total Cash and Cash Equivalents to be presented as current asset of MaMaMoBlue Co. as of December 31, 2020

a. P5,442,960

b. P6,142,970

c. P4,442,960

d. P5,439,360