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You were assigned to audit the financial statements of PASADO Company for the year ended December 31, 2005. The fieldwork has been completed and you are now going over your audit findings to summarize your potential adjustments. The client is willing to accept all the necessary adjustments in order for the financial statements to be presented fairly in conformity with generally accepted accounting principles. The following data were taken from your current working papers. Cash account consists of the following items: Petty cash fund PBCom checking account BPI Special Account P 10,000 (15,000) 40,000 137,700 PNB current account Total per GL P 172,700 a. The count of the cashier's accountability on January 2, 2006, revealed total currency and coins of P4,200. Unreplenished vouchers for various expenses totaled P5,800, of which P900 pertains to January 2006. b. On December 29, 2005, a check for P35,000 was drawn against PBCom current account resulting in bank overdraft of P15,000. The check was picked up by the supplier on January 3, 2006. Another check received by PASADO Company on December 30, 2005 amounting to P10,000 which was dated January 4, 2006, which was included in the cash account balance. This customer payment relates to the sales transaction occurred last November 15, 2005. c. Bank reconciliation statement prepared by the cashier for the PNB account follows: Bank balance P 124,100 Add: Deposit in transit P 24,500 Bank service charges 400 24,900 149,200 Total Less: Outstanding checks Check No. Amount P 1,000 @ 567 589 8,300 617 2,400 626 3,400 11,500 P 137,700 Book balance

You were assigned to audit the financial statements of PASADO Company for the year ended December 31, 2005. The fieldwork has been completed and you are now going over your audit findings to summarize your potential adjustments. The client is willing to accept all the necessary adjustments in order for the financial statements to be presented fairly in conformity with generally accepted accounting principles. The following data were taken from your current working papers. Cash account consists of the following items: Petty cash fund PBCom checking account BPI Special Account P 10,000 (15,000) 40,000 137,700 PNB current account Total per GL P 172,700 a. The count of the cashier's accountability on January 2, 2006, revealed total currency and coins of P4,200. Unreplenished vouchers for various expenses totaled P5,800, of which P900 pertains to January 2006. b. On December 29, 2005, a check for P35,000 was drawn against PBCom current account resulting in bank overdraft of P15,000. The check was picked up by the supplier on January 3, 2006. Another check received by PASADO Company on December 30, 2005 amounting to P10,000 which was dated January 4, 2006, which was included in the cash account balance. This customer payment relates to the sales transaction occurred last November 15, 2005. c. Bank reconciliation statement prepared by the cashier for the PNB account follows: Bank balance P 124,100 Add: Deposit in transit P 24,500 Bank service charges 400 24,900 149,200 Total Less: Outstanding checks Check No. Amount P 1,000 @ 567 589 8,300 617 2,400 626 3,400 11,500 P 137,700 Book balance

Auditing: A Risk Based-Approach to Conducting a Quality Audit
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter17: Other Services Provided By Audit Firms
Section: Chapter Questions
Problem 52RSCQ
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What amount is the audited amount of cash?
You were assigned to audit the financial statements of PASADO Company for the year ended December 31, 2005. The fieldwork has been completed and you are now going over your audit findings to summarize your potential adjustments. The client is willing to accept all the necessary adjustments in order for the financial statements to be presented fairly in conformity with generally accepted accounting principles. The following data were taken from your current working papers. Cash account consists of the following items: Petty cash fund PBCom checking account P 10,000 (15,000) 40,000 BPI Special Account 137,700 PNB current account Total per GL P 172,700 a. The count of the cashier's accountability on January 2, 2006, revealed total currency and coins of P4,200. Unreplenished vouchers for various expenses totaled P5,800, of which P900 pertains to January 2006. b. On December 29, 2005, a check for P35,000 was drawn against PBCom current account resulting in bank overdraft of P15,000. The check was picked up by the supplier on January 3, 2006. Another check received by PASADO Company on December 30, 2005 amounting to P10,000 which was dated January 4, 2006, which was included in the cash account balance. This customer payment relates to the sales transaction occurred last November 15, 2005. c. Bank reconciliation statement prepared by the cashier for the PNB account follows: Bank balance P 124,100 Add: Deposit in transit P 24,500 Bank service charges 400 24,900 149,200 Total Less: Outstanding checks Check No. Amount P 1,000 @ 567 589 8,300 617 2,400 626 3,400 11,500 P 137,700 Book balance
Transcribed Image Text:You were assigned to audit the financial statements of PASADO Company for the year ended December 31, 2005. The fieldwork has been completed and you are now going over your audit findings to summarize your potential adjustments. The client is willing to accept all the necessary adjustments in order for the financial statements to be presented fairly in conformity with generally accepted accounting principles. The following data were taken from your current working papers. Cash account consists of the following items: Petty cash fund PBCom checking account P 10,000 (15,000) 40,000 BPI Special Account 137,700 PNB current account Total per GL P 172,700 a. The count of the cashier's accountability on January 2, 2006, revealed total currency and coins of P4,200. Unreplenished vouchers for various expenses totaled P5,800, of which P900 pertains to January 2006. b. On December 29, 2005, a check for P35,000 was drawn against PBCom current account resulting in bank overdraft of P15,000. The check was picked up by the supplier on January 3, 2006. Another check received by PASADO Company on December 30, 2005 amounting to P10,000 which was dated January 4, 2006, which was included in the cash account balance. This customer payment relates to the sales transaction occurred last November 15, 2005. c. Bank reconciliation statement prepared by the cashier for the PNB account follows: Bank balance P 124,100 Add: Deposit in transit P 24,500 Bank service charges 400 24,900 149,200 Total Less: Outstanding checks Check No. Amount P 1,000 @ 567 589 8,300 617 2,400 626 3,400 11,500 P 137,700 Book balance
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