problem 4 and 5
Problem 4: various Current - Assets Tla nsaoliens The following accounts were included in the unadjusted trial balance of Gaara Company as December 31 . 201 3. Cash. P240300 Accounts receivable 5:53.500 Merchandise Inventory 1 512.500 Accounts payable 1.050.250 Accrued expenses 10?.?50 During your audit. you noted that Gaara held its cash receipts books open after yecr end. In addition. your audit revealed the following: I Receipts for January 2019 of P153. 4550 were recorded in the December 2015 cash receipts journal. The receipts of P90.025 represents cash sales and P23. 625 represents collections from customers. net of 595 cash discounts. I Accounts payable at P93.100 was paid in January 2019. The payments on which discounts of P3.100 was taken. were included in the December 2015 check register. - Merchandise inventory is valued at P1.512.500 prior to any adjustments. The following information has been found relating to certain inventory transaction: on Goods valued at P155950 are on consignment with a customer. These goods are not included in the P1.512.500 inventory gure. a Goods costing P54.3?5 were received from a vendor on January 4. 2019. The related invoice was received and recorded on January 5. 2019. The goods were shipped on December 31. 2015. terms FOB shipping point. a Goods costing P159395 were shipped on December 31. 2010 and were delivered to the customers on January 3. 2019. The terms of the invoice were FOB Shipping Point. The goods were included in the 2015 ending inventory even though the sale was record ed in 2015. a A P45.500 shipment at goods to a customer on December 30. terms FOB Destination are not included in the year-end inventory. The goods cost P131500 and were delivered to the customer on January 3. 2019. The sale was properly recorded in 2019. a The invoice for goods costing P113350 was received and recorded as a purchase on December 31. 2018. The related goods. shipped FOB Destination were received on January 4. 2019. and thus were not included in the physical inventory. a Goods valued at 9153. 200 are on consignment from a vendor. These goods are not included in the physical inventory. Required: Prepare a working paper. [10 points] Cash Accounts receivable. Meroh andise Accounts Payable before allowances Inventory before allowances. Problem 5: Short Explanation. Audit of Cash Funds A surprise count of the Sakura Company's imprest petty cash fund, carried on its records at P5,000 was made on November 10, 2020. The Company acts as agent for an express company in the issuance and sale of money orders. Blank money orders are held by the cashier for issuance upon payment of the designated amounts by employees. Settlement with the express company is made weekly with its representative, who calls at the Sakura Company office. At that time, he collects for orders issued, accounts for unissued orders, and leaves additional blank money orders, serially numbered. The count of the items presented by the cashier as composing the fund was as follows: Currency (bills and coins) P2,200 Cashed checks 500 Vouchers (made out in pencil and signed by recipients) 740 NSF checks (dated June 10 and 15, 20200 260 Copy of petty cash receipts vouchers: Return of expense advance 200 Sale of money orders (No. A1 1-20) 100 300 Blank money orders claimed to have been purchased for P100 each from the express company (No. A21-29) 600 At the time of the count, there were also on hand the following: Unissued money orders. No. A30-40 Unclaimed wages envelopes (sealed and amounts not shown) The following day, the custodian of the fund produced vouchers aggregating P400 and explained that these vouchers had been temporarily misplaced the previous day. They were for wage advances to employees. Required: State the audit procedures necessary for the verification of the items in the fund: (15 points) a. Cashed Checks Ac b. Vouchers not yet replenished Go C. NSF checks d. Return of excess travel advances e. Book balance of the petty cash fund
