Determine the cash shortage or overage on the petty cash fund, if there is any 2. How much is the adjusted cash balance of CIB-LBP Checking Account? 3. How much is the adjusted cash balance of CIB-BDO Savings Account?
Determine the cash shortage or overage on the petty cash fund, if there is any 2. How much is the adjusted cash balance of CIB-LBP Checking Account? 3. How much is the adjusted cash balance of CIB-BDO Savings Account?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 19E
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Question
The are the auditor of CK Company for the year ended, Dec. 31, 2020. The finance manager of the company presented the following information relating to cash balances:
Petty Cash (Imprest fund balance) - P20,000 Cash in Bank – LBP (checking account) - 526,000 Cash in Bank – BDO (savings account) - 700,000 Cash in Bank – Metrobank (peso savings acct) - 200,000 Cash in Bank – Metrobank (dollar savings acct) - $2,000
The following information was gathered during the conduct of your audit:
- The total bills and coins as per cash count amounts to P3,000
- A total of receipts amounting to P16,240 relating to travel expenses were unreplenished from PCF as of Dec, 31, 2020
- The LBP account has the following transactions and details:
- Bank Statement Balance as of Dec. 31, 2020 – P700,000
- A total of P50,000 Deposits in Transit
- Outstanding Checks amounting to P300,000
- Total deposits already included in the bank but not yet recorded in the book, P70,000
- A check that cleared the bank amounting to P140,000 was recognized in the company’s disbursement records at P14,000.
- Check disbursement of 20,000 issued by BSA Company, but erroneously deducted by the bank in the cash balance of CK Company
- The BDO savings account has the following transactions and details: 1. Bank Statement Balance as of Dec. 31, 2020 – P860,000
- Total deposits already included in the bank but not yet recorded in the book, P160,000
- The Metrobank accounts are restricted and allocated for the procurement of land and building. The closing rate for the year was $1 = P45 and the average was $1 = P40
Requirement: Answer the following (show your computation)
- Determine the cash shortage or overage on the petty cash fund, if there is any 2. How much is the adjusted cash balance of CIB-LBP Checking Account? 3. How much is the adjusted cash balance of CIB-BDO Savings Account? 4. How much is the combined balance of Metrobank Account (in pesos)? 5. How much should be reported as cash in te
statement of financial position ?
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