STRAIGHT PROBLEMS Problem 15 Reconstruction of Cash receipts During your audit of the cash receipts book of your client Jackson and Jackson Company you find the entries in that book and in the customers' ledger (both of which are reproduced below) of particular interest. CASH RECEIPT BOOK - MAY 2020 Accounts Date Customer Receivables Cash Sales Discount Net Cash 2020 May 1 Anthony Ford 11,250 11,250 2 Orlando Florida 16,000 16,000 3 Cash Sales* 2.000 2.000 4 Eugene Santos 8,000 8,000 5 Ulysses Romano 20,000 20.000 10 Anthony Ford 8,000 160 7,840 15 Orlando Florida 15,000 300 14,700 20 Eugene Santos 12,000 240 11,660 20 Cash Sales* 6.000 6,000 25 Ulysses Romano 27,000 540 26,260 26 Orlando Florida 10,000 10,000 26 Eugene Santos 30,000 600 29,200 30 Orlando Florida 9,000 9,000 30 Anthony Ford 2.000 2.000 16,000 2.000 2 Orlando Florida 3 Cash Sales 4 Eugene Santos 5 Ulysses Romano 10 Anthony Ford 15 Orlando Florida 20 Eugene Santos 20 Cash Sales* 25 Ulysses Romano 26 Orlando Florida 26 Eugene Santos 30 Orlando Florida 30 Anthony Ford Total 8,000 20.000 8,000 15,000 12,000 160 300 240 6.000 16,000 2,000 8,000 20,000 7,840 14,700 11,660 6,000 26,260 10,000 29,200 9,000 2.000 173,910 540 600 27,000 10,000 30,000 9,000 2,000 168,250 8.000 2.340 *In agreement with cash register tape and numbered cash sales slips. In the following customers' accounts, all the debit represent sales, except for initial debt in each account, which was the balance due at April 30. The terms were 2% - 10 days, net 30 days. Date May 1 [2] 1 [1] 3 [2] 4 10 (1) 30 Anthony Ford Debit Credit 11,250 11,250 8,000 12.000 8,000 2.000 Balances 11.250 0 8,000 20,000 12,000 10,000 Date May 1 [1] 2 [2] 2 [2] 9 [3] 15 [2] 15 [4] 26 [3] 30 [4] Orlando Florida Debit Credit 16,000 16,000 15,000 10,000 15,000 9,000 10,000 9,000 Balances 16,000 0 15,000 25,000 10,000 19,000 9,000 0 Ulysses Romano Date May 1 [1] 2 [2] 2 [2] 10 [2] 25 [2] Ulysses Romano Debit Credit 20,000 15,000 27,000 12000 20,000 Balances 20,000 35,000 8.000 20,000 0 Date May 1 [1] 4 (1) 15 [2] 16 [3] 20 [2] 26 [3] Eugene Santos Debit Credit 8,000 8,000 12.000 30,000 12000 30,000 Balances 8,000 0 0 12.000 42,000 30,000 0 Required: 1. Working papers to compute for the shortage. Use the following format: 2. Prepare the necessary adjusting journal entries. SOLUTION 1. Working papers to compute for the shortage. Use the following format: SOLUTION 1. Working papers to compute for the shortage. Use the following format: JACKSON AND JACKSON COMPANY Reconstruction of Cash Receipts For the month of May, 2020 Customer Accounts Receivables Cash Sales Discount Net Cash Date 2020 May 1 Anthony Ford 2 Orlando Florida 3 Cash Sales* 4 Eugene Santos 5 Ulysses Romano 10 Anthony Ford 15 Orlando Florida 20 Eugene Santos 20 Cash Sales* 25 Ulysses Romano 26 Orlando Florida 26 Eugene Santos 30 Orlando Florida 30 Anthony Ford 30 Orlando Florida 30 Anthony Ford Total Per Audit Less: Total per record Shortage - Adjustment 0 0 0 0 0 0 0 0 2. The necessary adjusting journal entries. Account Names Debit Credit Date 2020 Dec 31 STRAIGHT PROBLEMS Problem 15 Reconstruction of Cash receipts During your audit of the cash receipts book of your client Jackson and Jackson Company you find the entries in that book and in the customers' ledger (both of which are reproduced below) of particular interest. CASH RECEIPT BOOK - MAY 2020 Accounts Date Customer Receivables Cash Sales Discount Net Cash 2020 May 1 Anthony Ford 11,250 11,250 2 Orlando Florida 16,000 16,000 3 Cash Sales* 2.000 2.000 4 Eugene Santos 8,000 8,000 5 Ulysses Romano 20,000 20.000 10 Anthony Ford 8,000 160 7,840 15 Orlando Florida 15,000 300 14,700 20 Eugene Santos 12,000 240 11,660 20 Cash Sales* 6.000 6,000 25 Ulysses Romano 27,000 540 26,260 26 Orlando Florida 10,000 10,000 26 Eugene Santos 30,000 600 29,200 30 Orlando Florida 9,000 9,000 30 Anthony Ford 2.000 2.000 16,000 2.000 2 Orlando Florida 3 Cash Sales 4 Eugene Santos 5 Ulysses Romano 10 Anthony Ford 15 Orlando Florida 20 Eugene Santos 20 Cash Sales* 25 Ulysses Romano 26 Orlando Florida 26 Eugene Santos 30 Orlando Florida 30 Anthony Ford Total 8,000 20.000 8,000 15,000 12,000 160 300 240 6.000 16,000 2,000 8,000 20,000 7,840 14,700 11,660 6,000 26,260 10,000 29,200 9,000 2.000 173,910 540 600 27,000 10,000 30,000 9,000 2,000 168,250 8.000 2.340 *In agreement with cash register tape and numbered cash sales slips. In the following customers' accounts, all the debit represent sales, except for initial debt in each account, which was the balance due at April 30. The terms were 2% - 10 days, net 30 days. Date May 1 [2] 1 [1] 3 [2] 4 10 (1) 30 Anthony Ford Debit Credit 11,250 11,250 8,000 12.000 8,000 2.000 Balances 11.250 0 8,000 20,000 12,000 10,000 Date May 1 [1] 2 [2] 2 [2] 9 [3] 15 [2] 15 [4] 26 [3] 30 [4] Orlando Florida Debit Credit 16,000 16,000 15,000 10,000 15,000 9,000 10,000 9,000 Balances 16,000 0 15,000 25,000 10,000 19,000 9,000 0 Ulysses Romano Date May 1 [1] 2 [2] 2 [2] 10 [2] 25 [2] Ulysses Romano Debit Credit 20,000 15,000 27,000 12000 20,000 Balances 20,000 35,000 8.000 20,000 0 Date May 1 [1] 4 (1) 15 [2] 16 [3] 20 [2] 26 [3] Eugene Santos Debit Credit 8,000 8,000 12.000 30,000 12000 30,000 Balances 8,000 0 0 12.000 42,000 30,000 0 Required: 1. Working papers to compute for the shortage. Use the following format: 2. Prepare the necessary adjusting journal entries. SOLUTION 1. Working papers to compute for the shortage. Use the following format: SOLUTION 1. Working papers to compute for the shortage. Use the following format: JACKSON AND JACKSON COMPANY Reconstruction of Cash Receipts For the month of May, 2020 Customer Accounts Receivables Cash Sales Discount Net Cash Date 2020 May 1 Anthony Ford 2 Orlando Florida 3 Cash Sales* 4 Eugene Santos 5 Ulysses Romano 10 Anthony Ford 15 Orlando Florida 20 Eugene Santos 20 Cash Sales* 25 Ulysses Romano 26 Orlando Florida 26 Eugene Santos 30 Orlando Florida 30 Anthony Ford 30 Orlando Florida 30 Anthony Ford Total Per Audit Less: Total per record Shortage - Adjustment 0 0 0 0 0 0 0 0 2. The necessary adjusting journal entries. Account Names Debit Credit Date 2020 Dec 31