Audapp1_quiz#2.docx

AUDAPP2_QUIZ#2 “PRINCIPLES OVER FEELINGS.” PROBLEM#1 In connection with your audit of the financial statements of YEAH NEG CORP. for the year ended December 31, 2016, you conducted a surprise count of the company’s petty cash fund and undeposited collections at 8:20 a.m. on January 3, 2017. Your count disclosed the following: Bills and Coins Bills Coins P100.00 50 pieces 5.00 90 pieces 50.00 45 pieces 1.00 500 pieces 20.00 24 pieces 0.25 23 pieces Postage stamps (unused) – P563 Checks Date Payee Maker Amount Dec.30 Cash Custodian P 35,400 Dec.30 NEG YEAH YEAH NEG 41,000 Mar 1 YEAH NEG YellowKabers 11,000 Dec.30 YEAH NEG JollyGid Corp. 68,800 Dec.31 YEAH NEG LUPIN, sales manager 17,000 Dec.31 YEAH NEG Antok Inc. 4,255 Dec.31 YEAH NEG Manang Inasar 16,000 Unreimbursed vouchers Date Payee Description Amount Dec. 20 Resorts World Honeymoon of LUPIN P 15,000 23 LUPIN, Advance for trip to Sales manager Tagaytay City 55,000 28 Central Post Office Postage stamps 26,620 29 Messengers Transportation 25,150 29 Byte, Inc. Dinner for two with Ex-GF 25,800 Other items found inside the cash box:  Unclaimed pay envelope of Pachar Char Lang. Indicated on the pay slip is his net salary of P66,000. Your inquiry revealed that Juan’s salary is mingled with the petty cash fund.  The sales manager’s liquidation report for his Tagaytay City trip: Cash advances received on Dec.23 P55,000 Less: Hotel accommodation, meals, etc. P27,000 Bus fare for two 5,000 Cash given to Pablita, salesman 3,000 35,000 Balance P 20,000 Accounted for as follows: Cash returned by Pablita to the sales manager P3,000 Personal check of the sales manager 17,000 Total P20,000 Additional information:  The custodian is not authorized to cash checks.  The last official receipt included in the deposit on December 30 is No. 4351 and the last official receipt issued for the current year is No. 4355. The following official receipts are all dated December 31, 2014. OR No. Amount Form of Payment 4352 P26,300 Cash 4353 68,800 Check 4354 40,000 Cash 4355 4,255 Check  The petty cash balance per general ledger is P150,000. The last replenishment of the fund was made on December 25, 2016.

REQUIREMENT: COMPUTE THE FOLLOWING 1. Shortage due from the Pedro Pindukot 2. Undeposited Collections 3. Total Accountability 4. Total Accounted For 5. Total Cash Shortage/Overage

PROBLEM#2 The auditor for BIGLANG LIKO, INC. examined the petty cash fund immediately after the close of business, July 31,2017, the end of the company’s natural business year. The petty cash custodian presented the following during the count: Current P2,650 Pretty cash vouchers: Postage 400 Office supplies expense 1,900 Transportation expense 450 Computer repairs 900 Advance to office staff 2,600 A check drawn by Samantha, Inc., payable to the petty cash custodian 8,300 Postage stamps 400 An employee’s check, returned by bank, marked NSF 2,000 An envelope containing currency of P2,700 for a gift for a retiring employee 2,700 The general ledger shows an imprest petty cash fund balance of P27,000. 1. How much is the petty cash shortage or overage? 2. What is the adjusted balance of the petty cash fund at July 31, 2017? PROBLEM#3 YANIG is reviewing the cash accounting for JOKE ONLY, Inc. YANIG’s review will focus on the petty cash fund account and the bank reconciliation for the month ended May 31, 2017. YANIG has collected the following information from JOKE ONLY’s bookkeeper for the task. Petty Cash Fund 1. The petty cash was established on May 2,2017, in the amount of P20,000 2. Expenditures from the fund by the custodian as of May 31, 2017, were evidenced by approved petty cash vouchers for the following: Various Office Supplies P 7,840 IOU from employee 2,400 Shipping charges 2,298 Miscellaneous expenses 4,596 On May 31,2017, the petty cash fund was replenished and increased to P24,000; currency and coin in the fund at that time totaled P1,512. Bank Reconciliation Not Sure Bank Bank statement Disbursements Balance, May 1, 2017 Deposits Note payment direct from Customer (interest of P1,200) Checks cleared during May Bank Service Charges Balance, May 31, 2017

Receipts

Balance P350,760

P1,120,000 37,200 P1,246,000 2,080 ?

ABX, Inc.’s Cash Account Balance, May 1, 2017 Deposits during May 2017 Checks written during May 2017

P 354,000 1,240,000 1,273,400

Deposits in transits are determined to be P120,000, and checks outstanding at May 31 total P34,000. Cash on hand (besides petty cash) at May 31, 2017 is P9,840. 1. What is the amount of petty cash shortage? 2. What is the journal entry to record the replenishment of and increase in the petty cash fund? 3. What amount of cash should be reported in the May 31, 2017 statement of financial position? END 