PLEASE ANSWER 4-5 PROBLEM 1: The following items are found in the cash account of Ivie Company at December 31,2020. The company's controller asks your opinion whether the items listed below should beconsidered as part of cash account and come up with adjusting entry to adjust the cash account.1. Customers' check dated December 25, 2020, P25,000.2. Company's check (P30,000) dated December 26, 2020 which was drawn in payment formerchandise purchased on that date but not delivered until January 3, 2021. This checkwas deducted in the cash balance.3.A check worth P196,000 from customer who paid the account net of the 2% discount.The company records the transaction as credit to Accounts Receivable for the proceeds.Cash in closed bank (Urban Bank), P95,000.4.5. Redemption fund, P100,0006. Sinking fund, P100,000. This will be used on March 1, 2021 to redeem the bonds payable.7. Metro Bank Checking Account No. 0004568, P210,000.8.RCBC Checking Account No. 0002347, P115,000.9. Overdraft in PNB Checking Account No. 00011256, P50,000.10. Company's check dated January 3, 2021 in payment of account, P50,000. This wasrecorded in the company's disbursement ledger at December 31, 2020.11. Overdraft in RCBC Checking Account No. 0056791, P15,000.12. Postage stamps, P2,000.13. 90-day Treasury Bills (purchase on November 1, 2020), P100,00014. Treasury Bills that matures on February 1, 2021, P50,000.15. Change fund, P10,000.16. Customers' certified check, P20,000.17. Company's certified check, P50,000. (This was included in the cash disbursement forDecember).Based on the above data and the result of your audit, answer the following:1. The entry to correct/adjust item number 3 is:a. Accounts receivable 4,000Sales discounts4,000b. Sales discountsAccounts receivable4,0002. The entry to correct/adjust item number 10 is:a. Accounts payable 50,000Cashb. Other liabilities50,000Cash50,0003. The entry to correct/adjust item number 17 is:4,000a. Accounts payable 50,000Cash50,000b. Cash50,00050,000c. Accounts receivable 4,000Salesd. No adjustmentsc. CashAccounts payabled. No adjustment50,000c. CashAccounts payabled. No adjustments4,00050,00050,00050,000Accounts receivable50,0004. IVIE COMPANY'S adjusted cash and cash equivalents balance at December 31, 2020 is:a. P 771,000c. P 721,000b. P 741,000d. P 691,0005. The general cash account is considered significant in almost all auditsa. When the ending balance is materialb. When the beginning balance is materialc. When either beginning balance or ending balance is materiald. Even when the ending balance is immaterial

SOLUTION:- 4. OPTION D IS CORRECT 691,000 Item 1 - Cash Item 2 - Cash Item 3 - Cash Item 4 - Other…

4. IVIE COMPANY'S adjusted cash and cash equivalents balance at December 31, 2020 is: a. P 771,000 c. P 721,000 b. P 741,000 d. P 691,000 5. The general cash account is considered significant in almost all audits a. When the ending balance is material b. When the beginning balance is material c. When either beginning balance or ending balance is material d. Even when the ending balance is immaterial

4. IVIE COMPANY'S adjusted cash and cash equivalents balance at December 31, 2020 is: a. P 771,000 c. P 721,000 b. P 741,000 d. P 691,000 5. The general cash account is considered significant in almost all audits a. When the ending balance is material b. When the beginning balance is material c. When either beginning balance or ending balance is material d. Even when the ending balance is immaterial

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 1PA: The following transactions were completed by Hammond Auto Supply during January, which is the first...

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