Question
Problem 3 Your audit of the December 2006, financial statements of Mato Corporation reveals the following: 1. Current account at PBCom P (35,000) 2. Current
Problem 3
Your audit of the December 2006, financial statements of Mato Corporation reveals the following:
1. Current account at PBCom P (35,000)
| 2. | Current account at PNB | 65,000 |
| 3. | Treasury bills (acquired 3 months before maturity) | 200,000 |
| 4. | Treasury bills (maturity date is 12/31/07) | 500,000 |
| 5. | Payroll account | 175,000 |
| 6. | Foreign bank account - restricted (translated using the | |
| 12/31/06 exchange rate) | 900,000 | |
| 7. | Postage stamps | 600 |
| 8. | Employees' checks marked "DAIF" | 10,000 |
| 9. | IOU from the vice-president | 50,000 |
| 10. Credit memo from a supplier for a purchase returns | 25,000 | |
| Il. Traveler's check | 60,000 | |
-
Money order 10,000
-
Company's check dated 12/30/06 but not mailed at year-end 30,000
-
Petty cash fund (P4,OOO in currency and expense receipts for
(P6,000) 10,000
Questions
The entry to adjust the employees" checks marked "DAIF" is:
a. Accounts receivable 10,000
Cash 10/000
b. Cash 10,000
Accounts receivable 10,000
c. Employees' advances 10,000
Cash 10,000
d. Cash 10,000
Employees' advances 10,000
2. MATO CORPORATION'S adjusted cash and cash equivalents balance at December 31, 2006 is:
a. P 560,000 b. P 544,000 c. P 514,000 d. P 509,000
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-0078025365
