Use the following information to answer 1-2: You are auditing general cash for the Christian Company for the fiscal year ended July 31, 2017. The client has not prepared the July 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the reconciliation, with assistance from one of Christian Company's clerks. You obtain the following information: General Bank ledger P 45,610 statement P 57,530 250,560 Beginning balance Deposits Cash receipts journal Checks cleared Cash disbursements journal (217,610) July bank service charge Note paid directly NSF check Ending balance 254,560 (236,150) (870) (61,000) (3,110) P 6,960 P 82,560 June 30 Bank Reconciliation Information in General Ledger and Bank Statement: Balance per bank Deposits in transit Outstanding checks Balance per books P 57,530 6,000 17,420 46,110 Additional information obtained is: a. Checks cleared that were outstanding on June 30 totaled P16,920 b. A check for P10,600 cleared the bank, but had not been recorded in the cash disbursements journal. It was for an acquisition of inventory. Christian Company uses the periodic inventory method. c. A check for P3,960, issued by Christianne Company, was charged to Christian Company. d. Deposits included P6,000 from June and P244,560 for July. e. The bank charged Christian Company's account for a not sufficient fund check totaling P3,110. The credit manager concluded that the customer intentionally closed its account and the owner left the city. The check was turned over to a collection agency. f. A note for P58,000, plus interest, was paid directly to the bank under an agreement signed four months ago. The note payable was recorded at P58,000 on Christian Company's books.
Use the following information to answer 1-2: You are auditing general cash for the Christian Company for the fiscal year ended July 31, 2017. The client has not prepared the July 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the reconciliation, with assistance from one of Christian Company's clerks. You obtain the following information: General Bank ledger P 45,610 statement P 57,530 250,560 Beginning balance Deposits Cash receipts journal Checks cleared Cash disbursements journal (217,610) July bank service charge Note paid directly NSF check Ending balance 254,560 (236,150) (870) (61,000) (3,110) P 6,960 P 82,560 June 30 Bank Reconciliation Information in General Ledger and Bank Statement: Balance per bank Deposits in transit Outstanding checks Balance per books P 57,530 6,000 17,420 46,110 Additional information obtained is: a. Checks cleared that were outstanding on June 30 totaled P16,920 b. A check for P10,600 cleared the bank, but had not been recorded in the cash disbursements journal. It was for an acquisition of inventory. Christian Company uses the periodic inventory method. c. A check for P3,960, issued by Christianne Company, was charged to Christian Company. d. Deposits included P6,000 from June and P244,560 for July. e. The bank charged Christian Company's account for a not sufficient fund check totaling P3,110. The credit manager concluded that the customer intentionally closed its account and the owner left the city. The check was turned over to a collection agency. f. A note for P58,000, plus interest, was paid directly to the bank under an agreement signed four months ago. The note payable was recorded at P58,000 on Christian Company's books.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 31CYBK
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Question
100%
The checks outstanding on July 31 amount to: *
P 13,440
P 13,940
P 500
P236,150
The adjusted cash balance on July 31 is: *
P82,560
P46,110
P 6,480
P 6,980
Transcribed Image Text:Use the following information to answer 1-2:
You are auditing general cash for the Christian Company for the fiscal year ended July 31, 2017. The client has not
prepared the July 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the
reconciliation, with assistance from one of Christian Company's clerks. You obtain the following information:
General
Bank
ledger
P 45,610 P 57,530
250,560
statement
Beginning balance
Deposits
Cash receipts journal
Checks cleared
254,560
(236,150)
Cash disbursements journal (217,610)
July bank service charge
Note paid directly
NSF check
(870)
(61,000)
(3,110)
P 6,960
Ending balance
P 82,560
June 30 Bank Reconciliation
Information in General Ledger and Bank Statement:
Balance per bank
Deposits in transit
Outstanding checks
Balance per books
P 57,530
6,000
17,420
46,110
Additional information obtained is:
a. Checks cleared that were outstanding on June 30 totaled P16,920
b. A check for P10,600 cleared the bank, but had not been recorded in the cash disbursements journal. It was
for an acquisition of inventory. Christian Company uses the periodic inventory method.
c. A check for P3,960, issued by Christianne Company, was charged to Christian Company.
d. Deposits included P6,000 from June and P244,560 for July.
e. The bank charged Christian Company's account for a not sufficient fund check totaling P3,110. The credit
manager concluded that the customer intentionally closed its account and the owner left the city. The check
was turned over to a collection agency.
f. A note for P58,000, plus interest, was paid directly to the bank under an agreement signed four months ago.
The note payable was recorded at P58,000 on Christian Company's books.
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