These are the answers to the solution manual:24.P430,00025.P350,00026.P11,35027.P836,35028. P836,350Are these really the correct answers? Please show the computation from 24-28 please, thank you! O. Insatiable Company's general ledger showed a balance of P1,602,500 in itsCash account on December 31, 2012 which consisted of the following items:(The company adopts the policy of classifying as cash equivalents investmentinstruments with maturity of not more than 90 days)Checking account with Security Bank, General AccountChecking account with Security Bank, Payroll AccountCertificate of deposit with BPI, term 180 daysplaced on December 1, 2012Checking account with BPISinking fund cashSavings account with May Bank (closed)P475,000(25,000)125,000350,000250,000120,00012Petty cash fundTwo year treasury bonds issued on March 1, 2011but acquired on March 1, 2012 and maturingon February 28, 2013Cash surrender value of life insurance contracts25,00075,00022,50020,00045,00015,000Travel advances of salesmenUndeposited receiptsCustomers checks dated January 20, 2013Customers checks dated December 12, 2012 but returneddue to insufficiency of fundSavings deposit with BDO earmarked for theacquisition of equipment which is expected5,000To be disbursed in March, 2013Total100.000P1,602,500 The following information were gathered at year-end that pertains to the above:a. Included among the checks drawn against Security Bank general accountduring December and recorded also in December are:Check # 3144 written for P12,500 payable to ABC Trading was deliveredon January 5, 2013• Check # 4220 written for P24,000 payable to Dac Trading was certifiedby the bank but this check remained outstanding at reporting date.Check # 8603 written for p7,500 payable to Roshan Trading datedJanuary 26, 2013Included among the December receipts recorded in the Security Bank generalaccount are as follows:Customers checks for P15,000 dated January 30, 2013Customers check for P25,000 dated December 14, 2012 but returned bythe bank due to insufficiency of fundMoney orders for P1,000Travelers' check for $2,000 converted to peso value of P84,000b. The company has an overdraft line with Security Bank hence the right of offsetexists.c. Included in the checking account with BPI is compensating balances amountingto P150,000 against long-term borrowing. The compensating balances are notlegally restricted.d. Petty cash fund consists of currencies and coins of P11,350; unreplenishedvouchers for expenses, P10,200; cash advances of employees, P3,450.Correct cash balance of the checking account with Security Bank atDecember 31, 2012Correct cash balance of the checking account with BPI at December31, 2012Correct petty cash fund balance at December 31, 2012Correct cash balance at December 31, 2012Correct cash and cash equivalents at December 31, 201224.25.26.27.28.

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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 18E

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Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.
On June 30, Oscar Inc.s bookkeeper is preparing to close the books for the month. The accounts receivable control total shows a balance of $2,820.76, but the accounts receivable subsidiary ledger shows total account balances of $2,220.76. The accounts receivable subsidiary ledger is shown here. Can you help find the mistake?
On June 30, Isner Inc.s bookkeeper is preparing to close the books for the month. The accounts receivable control total shows a balance of $550, but the accounts receivable subsidiary ledger shows total account balances of $850. The accounts receivable subsidiary ledger is shown here. Can you help find the mistake?

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