This is an auditing subject. Please help. Thank you in advance.

2 PROBLEM 1: 3 4 Your client, BTS Co, has a weak internal control. Ms. Lisa, BTS Co.'s employee, handies cash receipts, disbursements from the cash receipts, maintains records, and prepares the monthly bank reconciliation. . The bank statement for the month ended March 31, 2020, shows a cash balance balance of P604,818. The following checks are outstanding on March 31: 7 10 11 No. 111 No. 222 No. 333 No. 444 No. 555 No. 777 7,685 5,634 12.403 7,854 6,832 9,835 12 13 14 15 16 17 The company's general ledger shows a cash balance of P743,200 on March 31, 2020. Realizing that he can easily misappropriate the funds, Ms. Lisa removed all the cash on hand in excess of P167,502, and then prepared the following reconciliation in an 18 effort to conceal this theft 19 20 21 22 743,200 24 BANK RECONCILIATION Balance per accounting records Add: Outstanding checks No. 333 12,403 No. 555 6,832 No. 777 9,885 Total Deduct: Cash on Hand Balance per Bank Statement, March 31 25 29,120 772,320 167,502 604,818 20 20 30 31 22 Q1. How much cash was taken by Mr. Weasley? Q2. What amount of Cash that should be on hand at March 312 33 35 PROBLEM 2: 38 Hermoine, an Associate of HP & CO. CPAs, was assigned to audit the cash and Accounts Receivable of Hogwarts Corporation. 38 Ms. McGonagall, the Head of Finance of Hogwarts, provided the following trial balance to Hermoine. 40 43 44 45 46 49 49 Petty Cash Fund Cash in Bank Accounts Receivable Allowance for doubtful accounts Inventory Property, plant and equipment Intangible Assets Accounts Payable Notes Payable Loans Payable Capital Retained Earnings Sales Cost of Sales Other expenses Balance as of Dec. 31 50,000 2,000,000 5,000,000 -80,000 3,000,000 4,000,000 200,000 -500,000 -3,000,000 -4,000,000 -2,000,000 -1,000,000 -6,000,000 2,000,000 330,000 51 29 SS SS 9 9 8 8 5 5 8 9 53 54 55 56 59 During the Audit, the Finance Manager, Mr. Neville, provided the schedule of Cash in Bank: 63 64 Cash in Bank - BPI No. 123 Cash in Bank - BDO No. 123 Cash in Bank - MBTC No. 123 Cash in Bank - BPI No. 234 Cash in Bank - AUB No. 123 Cash in Bank - SBTC No. 123 Cash in Bank - UB (Dollar account USD 4,000) Total 200,000 300,000 400,000 -50,000 450,000 500,000 200,000 2,000,000 72 Other Details: 1. Cash in Bank - SBTC No. 123 - includes a compensating balance which is legally restricted 2. Based on the review of the exchange rates for December 31, 2021: Closing rate 1 USD = 57 PHP Average rate 1 USD = 53 PHP 72 74 Hermoine also conducted cash count for the Petty Cash Fund. Upon inquiry, Hogwarts uses Imprest Fund System in accounting for the Petty Cash Fund. Below is the summary of the cash count: Coins Bills Receipts 3,000 22,000 20,000 For the review of the Accounts Receivable, Neville provided the aging schedule of receivables as of Dec. 31, 2021: Customer A Customer B Customer Customer D Customer e 2% 6% 10% Not yet past due - 30 days past du to 60 days past d than 60 days past due 1,000,000 200,000 500,000 200,000 200,000 1,000,000 300,000 100,000 100,000 1,200,000 200,000 100,000 -100,000 Hogwarts uses Aging of Accounts Receivable in estimating doubtful accounts. Q3. How much is the net income of Hogwarts for the year 2021? Q4. What amount must be reported as Accounts Receivable as of December 31, 2021? Q5. What amount should be reported as Cash and Cash Equivalents in the Statement of Financial Position? Q6. What amount should be reported as Cash in Bank as of December 31, 2021? PROBLEM 3: 99 100 104 During 2021, Mr. Salvador, an associate from SGC & CO. CPAS audited the cash and cash equivalent of ABC CO. The accountant of ABC Co. provided the following schedule of Cash and Cash Equivalents. 102 toa Check No. 893 300,000 Check No. 456 300,000 105 Check No. 789 250,000 Check No. 034 150,000 Check No. 156 250,000 104 100 100 100 40 119 Details Provided by the Accountant: Check No. 456- represents the check drawn by ABC CO. but was not yet issued to SAN MIGUEL CO. Check No. 893 - represents Customer Mr. A's checks dated December 29, 2021 Check No. 034 - represents ABC Co.'s check already issued to MAGNOLIA CO. dated January 2, 2022. Check No. 789 - represents the check of the employees representing salaries that are still unclaimed 112 114 155 Aside from the above schedule, the Accountant also discosed that the Company has a total Cash on Hand of Php 40,000 and Petty Cash Fund of Php 10,000 (fully replenished). Based on the cash count performed by the Auditor, there is a cash shortage of Php 3,000. 119 The Accountant also shared the schedule of certificate of deposits, treasury bills and money market placements as of December 31, 2021. Treasury bil purchased on Dec. 29, 2021, maturing on Mar. 31, 2022 250,000 Treasury bill purchased on Sep. 20, 2021, maturing on Jan. S, 2022 325,000 120 121 123 124 125 07. What amount should be reported as Cash and Cash Equivalent as of December 31, 2021? 120 PROBLEM 4: ABC Co. engaged you to help in the preparation of the financial statements for 2021. A review of the Company's Sales Invoices to various customers shows the following: Sales Invoce No. Customer Amount Inv. 123 Mr. A 50,000 Inv. 456 Mr. B 100,000 Inv. 789 Mr. A 30,000 Inv. 034 Mr. 40,000 Inv. 016 Mr. 25,000 Inv. 560 Mr. 65,000 Date Shipped 12/12/2021 12/05/2021 12/30/2021 12/28/2021 12/31/2021 12/26/2021 Date Received 12/31/2021 01/02/2022 01/04/2022 12/28/2021 12/30/2022 01/03/2022 Terms FOB Shipping Point Freight Prepaid FOB Shipping Point Freight Collect FOB Destination Freight Prepaid FOB Shipping Point Freight Collect FOB Destination Freight Collect FOB Destination Freight Prepaid Freight Charge 2,000 3,000 500 500 500 1,000 Upon inquiry, all of the above invoices were recorded in 2021. The unadjusted balance of the Company's sales for year 2021 is Php 3,200,000 while the unadjusted balance of accounts receivable and allowance for doubtful accounts as of December 31, 2021 is Php 250,000 and Php 3,000 (CR) respectively. The Company uses Percent of Sales in estimating doubtful accounts, rate used is 0.5% Q8. What is the adjusted balance of accounts receivable (Gross) as of December 31, 2017 09. What amount should be reported as net recevable in the statement of financial position as of December 31, 2021? PROBLEM 6: ABC Co. showed a cash account balance of P5,400,000 at the year-end. The bank statement did not include a deposit of P270,000 made on the last day of the month. The bank statement showed a collection by the bank of P64,000 for the depositor and a customer check for P22,000 returned because it was NSF. A customer check for P65,000 was recorded by the depositor as P56,000, and a check written for P95,000 was recorded for P69,000. Q12. What amount should be reported as cash in bank? PROBLEM 7: During the audit of ABC Corporation for year 2021, the accountant provided the following details of Accounts Receivable to Mr. Santos, Auditor from NCBA & Co. 3% uncollectible 5% uncollectible 10% uncollectible Name of Customer Amount Not yet Past due 1 - 30 days past 31 - 60 days past More than 60 days past due Mr. A 100,000 100,000 Mr. B 200,000 50,000 150,000 Mr.C 300,000 100,000 100,000 100,000 Mr. D 400,000 100,000 100,000 100,000 100,000 The Company's total sales for the year 2021 is PHP 10,000,000. Upon inquiry, the auditor found out that the Company uses Aging of Accounts Receivable in estimating doubtful accounts. In the Company's unadjusted trial balance, the auditor noted that the allowance for doubtful accounts has a credit balance of PHP 25,500. Upon review of the documents, the auditor found out that the Company wrote off PHP 75,000 of its Accounts Receivable from Mr. D during the middle of the year. Q13. What is the amount of Allowance for Doubtful Accounts at the end of the year? Q14. The net accounts receivable as of Dec 31, 2021 is? Q15. How much is the bad debt expense for year 2021