Problem 1: You were assigned to audit the nancial statement of Jade Corp. on January 15,2016, for the year ended December 31,2015. The general ledger shows cash account balance of P?26,600 as at December 31,2015. The bank reconciliation prepared by the client's cashier included the following items: lCash per records, December 31,2015 P22111600 lCash per bank statement, December 31,2015 292,235 Note receivable collection by the bank in December, recorded in the books in January 3 20,000 Bank service charge for December, recorded in books in Jan. 3 5,000 Outstanding checks 25.925 Check of Jude Co rp., charged by the bank in error on December 28,2015; corrected by the bank on January 2,2016 2,250 Deposit in transit 10,500 From January 2,2016 to January 15,2016, the date of your cash count, total cash receipts appearing in the cash records amounted to P180500. During the same period, deposits clearing the bank amounted to P1431395. The following cash and cash items were on hand at the close of business on January 15,2016: Currency P4225 Customers 'checks 5,850 Expense vouchers 1.125 Audit notes: a. lCash collections from accounts receivable were erroneously recorded by the company as follows: Date 2f05! 15 Allowance for bad deb 12,000 Accounts receivable 12,000 12H'10J" 15 Inventory 9,000 Accounts receivable 9,000 12f15f15 Bad debts expense 10,500 Accounts receivable 10,500 in. Check deposit on January 5,2016, amounting to P5000 was not recorded in the books. c. Undeposited oollections on January 10,2016 amounting to P13,500 was also not recorded in the books. Requirements: 1. What is the correct cash in bank balance as of December 31,2015? 3. F29,060 b. ??3,100 c. 126,310 0'. ??3,100 2. What is the cash shortage as of December 31,2015? 3. None b. 46,290 c. 44040 d. 49,040