AUDITING PROBLEMS

Problem 1
1. HAZELNUT COMPAC
Cash on hand (Undeposited sales receipts)
Reconciled balance in BB Bank CA
Balance in CC savings account
Cash

P 40,800
374,000
342,400
P 757,200

*Certificate of time deposit w/ maturity of 3 mos.- Cash equivalent

*Customers note receivable-Notes receivable
*Reconciled balance in AA Bank CA-current liability since not repayable
*Customers postdated check-trade and other receivable
*Employee travel advances- Trade & other receivables
*Cash in bonk sinking fund investments-non current investments
*Postage stamps-other current assets(Supplies)

2. LYRIC CO.
Monte Bank: Checking account
Monte Bank: Savings account
Undeposited customer checks
Currency and coins
NAIC checking account
Treasury bills
Cash & Cash equivalent

P 540,000
884,000
208,000
23,200
800,000
600,000
P 3,055,200

*Savings account in NAIC Bank non-current assets

*180 day bills short term investments

7,500,000
11,550
3,150,000
1,500
P 12,763,050

*Travel advances trade & other receivables

*Separate cash fund (restricted)-other non-current asset
*I.O.U from an employee trade & other receivable
*Postdated check-trade &other receivable
*Two certificates of deposit (120 days)-short term investments

Problem 1-2
SANTIAGO COc
Metropolitan Bank: Current account
Metropolitan Bank: Savings account
Undeposited customer checks

P 81,000
132,600
19,200

(22,200-3000[postdated check])

Petty cash
NPB current account
Treasury bills (2 mos.)
Time deposit

Cash & Cash equivalent

1,200
600,000
90,000
100,000

P 427,480

*Postdated check[P3000]-trade & other receivables

*Savings account(expansion)-non-currents assets
*Unreplenished vouchers-deducted to petty cash
*Current account[P120,00]-restricted compensating balance
*7 months treasury bill-short term investments

DIONISIO CORP.

3. OTO COMPANY
Savings account
Checking account

Money Market (3 mos.)

Currency & coins on hand
Commercial paper (60 days)
Petty cash fund
Cash & Cash equivalent

P 900,000
1,200,000

Current account at Prudent Bank

Treasury bill (3 mos.)
Payroll account

P 135,000
300,000
390,000

Travelers check
Money order
Petty cash fund

Cash & Cash equivalent

21,000
12,900
3,000

P 861,900

*Current account at Prime Bank-current liabilities(SB)

*Treasury bills(mat. Dec.311,2015)-short term investment

*Foreign bank account-restricted-other noncurrent assets

*Employees postdated check-trade and other receivables
*IOU from the vice-president- trade and other receivables
*Credit memo from supplier for purchase return-(-AP)-CS
*Petty cash fund(expense receipt)-operating expense