CASE 2As the representative of the Santos & Associates, CPAS, you are auditing thebooks and records of SAMPAGUITA COMPANY as of Dec. 31, 2019. On Jan. 5, 2020,you began counting the petty cash fund and other funds with the cashier, Mrs. RuthMoldes, and you found bills, coins, checks, vouchers, etc. The petty cash fund amountsto P600.1. Bills and coinsP280.402. ChecksDateDec. 24, 2019DrawersR. Reyes, customerM.Cruz, customerPayeesSampaguita Co.Sampaguita Co.120.00Dec. 26, 2019130.003. IOUSDateEmployeesOct. 21, 2019Aga Nino25.00Dec. 20, 2019N. Santos15.00J. LisingB. AgetsDec. 23, 201910.00Jan. 3, 202020.00 4. Unreplenished petty cash vouchersРayeeAccount ChargedFreight InAdv. To Officers& EmployeesSupplies ExpenseSupplies ExpenseMiscellaneous ExpenseDate13.65Dec. 15, 2019Dec. 17, 2019UCPM. Dilig5.00Dec. 18, 2019Creus & Co.8.75Post Office20.00Dec. 20, 2019Dec. 21, 2019Dec. 21, 2019N. Santos10.20Lerma Trading Supplies ExpenseSupplies Expense8.35Jan. 2, 2020J.A.Nite16.005. Postage stamps (received from a customer as a payment for a small purchases8.00from Sampaguita in December, 2019)Further investigation also disclosed that a cash sale of merchandise last Jan. 2, 2020 amounted toP555.40 as shown by the sales records, while the cash receipts and bank deposit slip showed that onlyP455.40 was deposited at BDO on Jan. 3, 2020. You also found that the pay envelopes of the followingemployees had been opened, but the money was not removed was not removed from the envelopes...Each envelope was marked "Unclaimed" and opened-W. Martinez- For the week ending Dec. 30, 2019.H. Bautista- For the week ending Dec.23, 2019.P24.65P23.25Make a:1. Petty cash count sheet as of Jan. 5, 2020

Petty Cash Fund The usages of petty cash fund is to manage the petty expenses which are incurred in…

Answered: Further investigation also disclosed…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section5.4: Petty Cash

Problem 1WT

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On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transactions: A. On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38. B. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $110. C. On June 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $93. D. On June 29, the company determined that the petty cash fund needed to be decreased to $1,000. E. On June 30, the petty cash fund needed replenishment, as it was month end. The following are the receipts: Auto Expense $14, Supplies $75, Postage Expense $150, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
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.

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