PROBLEM 1

You are examining the amounts of Joash Beauty Salon. Your count of the
imprest cash fund, made at 9:00 AM on Jan 2, 2019 in the presence of
Alyson petty cahier, revealed:
Coins Bills
Quantity Denomination Quantity Denomination
32 P1.00 4 500
40 0.25 3 100
10 20
15 10

Checks
Date Payee Maker Amount
Dec-27 Cash Ana P5,000
Dec-30 Marky's Bhelle 6,100
Dec-30 Marky's Rama 6,500

Unused Stamps:
Various Denomination P80

Vouchers
Date Nature of Disbursement Amount
Dec 15 Transportation 65
16 Office Supplies 70
17 Xerox Fees 80
28 Postage 150
Jan 2 Newspaper 10
2 Freight Charges 55
IOU's
Date Maker Amount
Dec 20 Rhading, employee 50
23 Sabado , salesman 100
The balance of the Petty Cash Count, Dec 31, 2018, was P5000. Sales
invoices (for cash sales, all in cash, no checks)
Invoices
#2207 Dec-30 4,000.00
#2208 Dec-31 5,100.00
#2209 Jan-02 3,050.00

Required:
1. Compute for the Cash Shortage or Overage (10 points)
2. Provide the necessary journal entries (20 points)
PROBLEM 2
You have been hired by Sophia Manufacturing Co. as an internal auditor.
One of your first assignments is to reconcile the bank account of the
company.
The bank statement shows the following:
Beginning Bal Aug 1, 2018 180,250
Deposits (20) 1,830,752
Checks-(64) plus debit memos -1,702,830
Service Charges-new checks -88
Ending Balance 308,084

The cash account on the books of Sophia Manufacturing Co. is as follows:

CASH
01-Jul Beg 128,384.00 1,330,882.00 Cash Disb. Jul-31
 Jul-31 Cash Receipts 1,364,858.00 750.00 Bank Recon Aug-01
Aug-31 Cash Receipts 1,839,744.00 1,712,892.00 Cash Disb. Aug-31

Your review of last month’s bank reconciliation and the current bank
statement reveals the following:
1) Outstanding Checks:
July 31,2018 ?
August 31, 2018 P67,122
2) Deposits in Transit
July 31,2018 P31,844
August 31, 2018 41,836
3) Check No. 216 for the Office Furniture was written for P1,390 but
recorded in the cash disbursements journal as P1,930. The bank
deducted the check as P1,390. The error happened in July and is not
yet corrected as of August 31
4) A check written on the account of the Caleb Co. for P1,166 was
deducted by the bank from Sophia’s account.
5) Included with the bank statement was a debit memorandum dated
August 31 for P4,950 for interest on a note taken out by the Sophia
Manufacturing Co. July 30.
6) The service charge for new checks has not been recorded.
7) The July 31, 2018 bank reconciliation showed as reconciling item a
service charge of P52 and an NSF check for P698.
Compute:
5 points each for each number and 10 points for the Whole Proof
of Cash Solution
1. Unadjusted cash in bank per books, August 31, 2018
a. P288,462
b. 289,212
c. 289,752
d. 289,002
2. Outstanding Checks as of July 31, 2018
a. 51,484
b. 52,110
c. 50,944
d. 51,570
3. The adjusted cash in bank per books, July 31, 2018
a. 162,150
 b. 162,848
c. 162,202
d. 161,610
4. The adjusted disbursements for August 2018
a. 1,718,470
b. 1,717,930
c. 1,717,180
d. 1,719,096