PROBLEM 1 – Problem 2 Audit of CashYour examination of the financial statements of MAGDALO Group Co. for the year ended December 31, 2007 you obtained the following information on the checking account of the company: a. The bank statement on November 30, 2007 showed a balance of P15,300. b. Among the bank credits in November was a customer’s note for P5,000 collected for the account of the company which the company recognized in December among its receipts. c. Included in the bank debits in November was a cost of checkbooks amounting to P60. d. A check for P2,000 issued by MAGULO Group Co. in November was charged by the bank in error against MAGDALO Group Co. account. e. You also ascertained that there were deposits in transit amounting to P4,000 and outstanding checks totaling P8,500 as of November 30, 2007. f. The bank statement for the month of December showed total credits of P20,800 and total charges of P10,200. g. Company books for December showed total receipts of P36,780 and disbursements of P20,360. h. Bank debit memos for December were: No. 418 for service charges, P80 and No. 504 on a customer’s returned check marked “Refer to Drawer” for P1,200. i. On December 29, 2007 the company placed with the bank a customer’s promissory note with a face value of P6,000 for collection. The company treated this note as part of its receipts although the bank was able to collect on the note only in January, 2007. j. A check for P198 was recorded in the company cash payments books in December as P1,980. 1.Adjusted cash balance as of December 31, 2007. a. P24,280 b. P36,880 c. P18,782 d. P16,940 e. other amount 2.Unadjusted book balance November 30, 2007. a. P12,800 b. P7,800 c. P12,860 d. P7,860 e. other amount 3.Adjusted cash balance November 30, 2007. a. P8,800 b. P12,800 c. P21,300 d. P10,800 e. other amount 4.Deposit in transit as of December 31, 2007. a. P21,980 b. P10,980 c. P8,890 d. P16,980 e. other amount 5.Outstanding Checks as of December 31, 2007. a. P19,940 b. P16,818 c. P19,880 d. P18,098 e. other amount
PROBLEM 1 – Problem 2 Audit of CashYour examination of the financial statements of MAGDALO Group Co. for the year ended December 31, 2007 you
obtained the following information on the checking account of the company:
a. The bank statement on November 30, 2007 showed a balance of P15,300.
b. Among the bank credits in November was a customer’s note for P5,000 collected for the account of the
company which the company recognized in December among its receipts.
c. Included in the bank debits in November was a cost of checkbooks amounting to P60.
d. A check for P2,000 issued by MAGULO Group Co. in November was charged by the bank in error against
MAGDALO Group Co. account.
e. You also ascertained that there were deposits in transit amounting to P4,000 and outstanding checks
totaling P8,500 as of November 30, 2007.
f. The bank statement for the month of December showed total credits of P20,800 and total charges of
P10,200.
g. Company books for December showed total receipts of P36,780 and disbursements of P20,360.
h. Bank debit memos for December were: No. 418 for service charges, P80 and No. 504 on a customer’s
returned check marked “Refer to Drawer” for P1,200.
i. On December 29, 2007 the company placed with the bank a customer’s promissory note with a face value
of P6,000 for collection. The company treated this note as part of its receipts although the bank was able to
collect on the note only in January, 2007.
j. A check for P198 was recorded in the company cash payments books in December as P1,980.
1.Adjusted cash balance as of December 31, 2007.
a. P24,280 b. P36,880 c. P18,782 d. P16,940 e. other amount
2.Unadjusted book balance November 30, 2007.
a. P12,800 b. P7,800 c. P12,860 d. P7,860 e. other amount
3.Adjusted cash balance November 30, 2007.
a. P8,800 b. P12,800 c. P21,300 d. P10,800 e. other amount
4.Deposit in transit as of December 31, 2007.
a. P21,980 b. P10,980 c. P8,890 d. P16,980 e. other amount
5.Outstanding Checks as of December 31, 2007.
a. P19,940 b. P16,818 c. P19,880 d. P18,098 e. other amount
PROBLEM 2 – Problem 5 Audit of Cash
Bioflu Company has a current account in Metrobank. Your audit of the company’s cash account reveals the following:
a. Balances taken from the company’s general ledger:
Cash balance, November 30, 2007 P637,860
Cash balance, December 31, 2007 576,420
Receipts, December 1-31, 2007 306,220
b. Outstanding checks, November 30, 2007
(P26,140 was paid by bank in December) 64,140
c. Checks written and recorded in December; not included in the checks returned with the
December bank statement 36,080
d. Deposit in transit, November 30, 2007 15,260
e. Deposit in transit, December 31, 2007 16,140
f. A bank credit memo was issued in December to correct an erroneous charge made in
November 1,500
g. Note collected by bank in December (company was not informed of the collection) 2,060
h. A check for P2,020 (payable to a supplier) was recorded in the Check Register in December
as P3,000 980
i. A check for P2,240 was charged by the bank as P2,420 in December 180
j. Bioflu Company issued a stop payment order to the bank in December. This pertains to a
check written in December which was not received by the payee. A new check was written
and recorded in the Check Register in December. The old check was written off by a
entry
k. Bank service charge, November 30, 2007 60
6. The total outstanding checks on December 31, 2007, should be:
a. P38,000 b. P74,080 c. P36,080 d. P62,220 e. other amount
7. What is the bank statement balance on November 30, 2007?
a. P684,400 b. P587,420 c. P685,180 d. P688,180 e. other amount
8. What is the bank statement balance on December 31, 2007?
a. P636,440 b. P637,220 c. P637,580 d. P637,160 e. other amount
9. The total bank receipts for the month of December should be:
a. P309,680 b. P304,000 c. P308,900 d. P308,120 e. other amount
10. The total bank disbursements for the month of December is:
a. P356,080 b. P356,860 c. P357,640 d. P356,200 e. other amount
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