Problem 1-3 ‘Your audit ofthe Decemer 31, 2014, Snan:ial statements of DIONISIO Corp, reveas the fllowing Current accoust @ Prime Banke 20,000) Curent account @ Prodent Bank 135,000 ‘Treasury bills acquired 3 months before maturity) 300,000 ‘Treasury ils (maturity date is Dee. 31, 2013) 1,300,000 Payroll Accoust 330,000, Foreign bank account-resiced (wanlated using the Dec. 31, 2014, exchange rate) 000.000 Postage Stamp 1250 Employee's pstdeted check 4300 TOU from the vise president 8,000 Credit memos fem a supplier fora purchase return 8,100 Traveler's check 21,000 Money order 12900 erty cash fund (3,000 in curteney and expense receipts for P12.000) 15,000 What amount would be reported as ‘cash and cash equivalents i the statement of fsancal positon on Desember 31, 2014? ‘a Pe40.050 573.800 & P549.400 & PB6i.300 Soluce: Current accovat @ Prodect Bask “Treasury bis acquired Sos. Before manus) Payroll account “Tenveler « Check. ‘Money Order eet cash fand ‘Total cash and cath equivalents Problem 1 ‘Prevented below area serie of wrelaed ination: 1 The accountant of NARCISA Co, provided the following data in reconling the April 30 cash in bak balance ‘Balance per bak, April 30 130.380 Balance per book, April 30, 85,000 Beak service charge 2,000, Deposits in anit 49,000, (Outstanding checks 17880 Notes collected by bank inching P11 200 interest (Garces Co. not yet informed) 136000 (Check dawn by XYZ Co, encneously charged by ‘Butk fo Narcisa's Accoust 4,600 A twanspsition eo was made in cording asa and depositin wanst ia the sales journal and cash reccits journal in Ape (Comest amount Piress Revorded ae P 16.358 Requirement: What isthe adjusted cath balance on April 30? Soliton Book Unadjusted balances 85,000 130.380 Bunkserice charge 2.000) Deposits in Transit 49,000 Outstanding checks 17850) Colleton of note 136,000 ones bank debit 4,600 ‘Transposition exor (16.35813,688) 2,700) Adjusted balances 2165300, 2163002. The lloinginformsiniinsloded in ENT. Corpornon's bark stement forte mon of Marck: ‘eutomer check bar been alad NSF Ey oe ‘Bank en eames P13,900 ‘Buk erie carpe fo larch 1200 tn comparing sh bank teenth company’ ca esr, you found “Gaitening ceeckece Mach Pissoa0 Depots ade bu are note show nthe Apel bark stement 14,000 “Tee depen mam and standing checks ave been comes taken ap i he companys bocka Yow slo hens 2 comers check far P1740 hat ad uot yt ben posed aad bad not set ben ectded in Eas book, Your cleats brseshons aes baece of 256400 Requirement: What ic sil Copan’ cose cash lance a Nach 31? sont Balasce pa books se00 ‘Unrescrded me undepceted customer's check 17400 Beskesrie hae 20 XSF Geek 3000) Adjnsted Ba Bat 5 Thefoloynt infomation perns to shecing scout of smpany at ene 39,2014, "Blancs pa bas seaeat 100.000 Inert ened the cod ui 500 Outaeding chcks (Cater! check eure for ineciet find Deport ia wanait ‘Roquiromone What ie th djaed cn balance a Zon 30,2014? Satin ‘Balance pe ban surement 200.000 Oustndag checks Gis) Deport ia anit 25000 Thiet nae (G00) NeFaste 500 Balance per books a June 30,2014 504 4. A company it sconcing is bak erent with tral records. Th cach balance pr the company’s books ix P4000 ‘Taee ae P5000 of an chegee aot yrceszded. 7” 300 of teasing ceca, 12.00 of dope ta sa P15.000 fbank dit and collection aot rt akan up ete compass book ‘Requirment Wat th ce ance peti? sotto: Balance per book Bracers Oud checks Depo unt Bani eres ond cllechons Balance per bank company sions 9 cash blmnce of 275,000 op ts bak snementdateé June 30. As of Jane 29, hee are PSS 000 of ‘uteauigg ike and P27.300 depot rans. ‘Requiment Wats he ores ath belass one company books a of ie 302 Solution Balance per bank aramect 75000 Outsandng certs ($5,000) Depess vast 51500 djused cash Balance6. ‘The cash account shows a balance of P225,000 before reconciliation, The bank statement docs not incide a deposit of 1,500 made on the last day ofthe mouth, The bank statement shows a collection by the bank of P4700 anda customer's cck for P1,600 was returned because it was NSF. A customers check for P2250 was recorded onthe books as 2.700 and a heck wen for 39S was corded as PASS Solution: Balance per books 225,000 Bank collection 4,700 Customer's NSF check (1,600) Overstatement of cash receipt (2,700 — 2,250) (450) Overstatement of cash disbursement (485 — 395) 90, Adjusted balance 227.740 7. OnJuly 5, 2014, EMILIA Corp received its bank statement for the month ending Jane 30, The statement showed a P209,500 balance wile the cash account balance on June 30 was P35,000, In reconciling the balances, the auctor discovered tha ‘a. The Jaze 30 collections of P176,000 were recozded on the books but were not deposited util July L 1b. The bank service charges forthe mouth of hue totaled 00. {© A paid cheok for P24,300 was entered incorrectly in the cash payments journal as P34,200, Requirement: What isthe total oustanding checks at June 30, 2014 Sottion Balance per books, June 30,2014 Bank service charge Overstatement of disbursement (34,200 24,300) Adjusted cash balance Balance per bank, June 30, 2014 Adi: Undeposited collections Total Less: Adjusted cash balance ‘Outstanding checks, June 30,2014‘The auditor for SAMANTHA INC. examines the petty cash fund immediately attr the close of business, July 31,2016, the end f the company's natural business yar. The petty cash custodian presented the fellouing during the count: currency Fuss0 Fetty cosh vouchers Postage 420 office supalies expense 00 Teansportation expense 0 ‘Computer repairs 20 ‘Advances oof staf 1.300 A chek awn by Samantha, ne, payable tothe pety eas custodian 7200 Postage saps 200 An employee's check, retumedby bank, marked NSE 2,000 An envelope containing currency of P Lss0feragitfora renringemployee _1.a90, sn ‘The general ledger shows an imprest petty cash fund balance of 16,000 solution 1. currency so Pty cash vouchers (2420 + P500 + P340 + P800 + 1,500) 3500 Replenishment check 7.200 Employee's NSF check 3.000 Petty ash acourted iae10 Paty cash fund per ledger [ustodlan’s accountabity) 36000 Petty cash shortage 280 Answer 8 2. currency uso Replenishment check 7.200 Adjusted petty cash balance paso Answer:The allowance for bad debts to be reported on the state of financial postion at December 31, 2010 9,699 4199 715,199 B. 5500 What entry shoul be made on December 31, 2010 to aust te allowance for bad debrs Bad debt expense 15,198 ‘Nlowance for bad debts 15199 Bad debt expense 438 ‘lowance for bad debts 4.98 ‘Nloweanee for Bod debts 5.300 Bad Dest Expense 53.500 Bad Debt Expense 9,600 Allowance fr Bad Debts 9689 Whats the net ealabl value of secounts at December 1, 2010? PISS, 641 pizza 196039 P1E6, 340Problem 2.13, Accounts Receivable Aging Schedule ‘CALACHUCH CORP’ accounts receale subsidiary ledger shows the Following nformation: ‘RECOUNT invoice cusTowen | bec. 31, 2010, DATE ‘AMOUNT ‘Ay, ne 35,180 12/08/30 14,000 11/23/10 21.180 Taka, a0 o9fa7/10 12,000 08/20/10, 5920 Saka. 32.500 12/08/10 20,000 1025/10 10,500 Wipes. 5,100 24/37/10 23,200 10/09/10 22,000 Tye 300 amzjio 119200 12/02/10 12400 Taken, i700 on/i2/i0 17400 ‘The estinated bad debt rates below are based on Calachuchi Corp's receivable collection ‘experience, ‘Age of Accounts Rate (O80 days Ue B-60days 1% e1s0days 3% 9-120 d0y6 10% Over 120dn98 50% ‘The allowance for ba of debts account hada debit balance of P5, SCO on December 31,2010, before adjustment 1, The company’s accounts receivable under “61-90 days eategory should be ‘A. 32,500 & paaa0 B Pa4230 , 42,000 2. The companys accounts receivable under “91-120 days" category should be ‘A. 738,320 © P2900 49,00 . 12,00043, The allowance for bad debs tobe reported onthe state of Financia postion at December 31, 201015 A P9839 499 B PIsa99 0. 5500 4 What entry shouldbe male on December 31,2010 to act the allowance for bad debts A. Bad debt expense 15,199 Billowance for bad debts 15199 2. Baddebt expense 4199 Allowance for bad debts 4198 & Allowance for Bad debts 5.500 ad Debt Expense 5500 D. Bad Debt Expense 9.689 Allowance for Bad! Dabs 9,699 5. Whatlsche met realizable value of accounts at December 33,2010? A 65, 542 pam 1a © 196.039 D. PiB6, 340, Solution 2-13 Calaehueh Corp ACCOUTS RECEIVABLE AGING SCHEDULE ‘December 31,2010 Babnes | 030 31.60 6130 | s1i20 | Overs20 Gistomer | 12-31-10 | Days Days. Days ays Days ‘ry, ine. _35,180 | P14,000__| P21,180 ‘Naku Go. 20,520 aao0_| 3820 Corp. | 30.600 | 20,000 70,500 Tripeo. 45,140 7140_| 22,000 ‘Uyco.| 31.600 | 3100 Kak Corp. 17 400 a04o | e500 | paasn0 | pazgoo_| p29a00 | paso A. Answer: 2. Anawer:€ 3, COMPUTATION OF REQUIRED ALLOWANCE DECEMBER 31, 2010, 050 bays P55600 xX 1% Pese 3160 Days 44320 xX 150 665 6190 Days 32600 xX 378 51120 bays 23400 xX 10% 2.940Over 120 Days 8820 Xx 50K Answer: A Bad debt expense 15,199 ‘Allowance for Bad debts 15,99 Required allowance (seen0.2) 79,699 ‘Ad Allowance balance debit 3500 Increase in allowance P1s.i99 Answer: A Aecounts receivable go, 840 Less: Allowance for bad debts (see no.2) (3.699), Net ceaeable value, Dee. 31,2010 pam Answer: