Please show and explain your solution how did it came up with this answer.

PROBLEM NO. 4 The Rupiah Corporation was organized on January 15, 2005 and started operation soon thereafter. The Company cashier who acted also as the bookkeeper had kept the accounting records very haphazardly. The manager suspects him of defalcation and engaged you to audit his account to find out the extent of the fraud, if there is any. On November 15, when you started the examination of the accounts, you find the cash on hand to be P25,700. From inquiry at the bank, it was ascertained that the balance of the Company's bank deposit in current account on the same date was P131,640. Verification revealed that the check issued for P9,260 is not yet paid by the bank. The corporation sells at 40% above cost. AP-59070 5 of 5 Your examination of the available records disclosed the following information: Capital stock issued at par for cash P1,600,000 Real state purchased and paid in full 1,000,000 Mortgage liability secured by real state 400.000 Furniture and fixtures (gross) bought on which there is still balance unpaid of P30,000 145.000 Outstanding notes due to bank 160,000 Total amount owed to creditors on open account 231,420 Total sales 1.615.040 Total amount still due from customers 426.900 Inventory of merchandise on November 15 at cost 469,600 Expenses paid excluding purchases 303,780 QUESTIONS: Based on the above and the result of your audit, compute for the following as of November 15, 2005: A B C D 1. Collections from sales 1,615,040 2,041,940 1,153,600 1,188,140 2. Payments for purchases 1,207,204 922, 180 1,854,620 1,391,780 3. Total cash disbursements 3,273,400 2,625,984 2.810.560 2,340,960 4. Unadjusted cash balance 1,007,180 537,580 74,740 722, 156 5. Cash shortage 389,500 859,100 574,076 0 SUGGESTED ANSWERS: D, D, C, B, A - End of AP-5907Q - PROBLEM NO. 4 The Rupiah Corporation was organized on January 15, 2005 and started operation soon thereafter. The Company cashier who acted also as the bookkeeper had kept the accounting records very haphazardly. The manager suspects him of defalcation and engaged you to audit his account to find out the extent of the fraud, if there is any. On November 15, when you started the examination of the accounts, you find the cash on hand to be P25,700. From inquiry at the bank, it was ascertained that the balance of the Company's bank deposit in current account on the same date was P131,640. Verification revealed that the check issued for P9,260 is not yet paid by the bank. The corporation sells at 40% above cost. AP-59070 5 of 5 Your examination of the available records disclosed the following information: Capital stock issued at par for cash P1,600,000 Real state purchased and paid in full 1,000,000 Mortgage liability secured by real state 400.000 Furniture and fixtures (gross) bought on which there is still balance unpaid of P30,000 145.000 Outstanding notes due to bank 160,000 Total amount owed to creditors on open account 231,420 Total sales 1.615.040 Total amount still due from customers 426.900 Inventory of merchandise on November 15 at cost 469,600 Expenses paid excluding purchases 303,780 QUESTIONS: Based on the above and the result of your audit, compute for the following as of November 15, 2005: A B C D 1. Collections from sales 1,615,040 2,041,940 1,153,600 1,188,140 2. Payments for purchases 1,207,204 922, 180 1,854,620 1,391,780 3. Total cash disbursements 3,273,400 2,625,984 2.810.560 2,340,960 4. Unadjusted cash balance 1,007,180 537,580 74,740 722, 156 5. Cash shortage 389,500 859,100 574,076 0 SUGGESTED ANSWERS: D, D, C, B, A - End of AP-5907