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How much is the adjusted cash balance as of December 31, 2019? 5. How much is the cash shortage of December 31, 2019?

How much is the adjusted cash balance as of December 31, 2019? 5. How much is the cash shortage of December 31, 2019?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 17P: Unknown Book Balance (Appendix 6.1) The following information pertains to the Cash account of...
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4. How much is the adjusted cash balance as of December 31, 2019?

5. How much is the cash shortage of December 31, 2019?

PROBLEM NO. 1 In connection with your examination, the Pound Company presented to you the following information regarding its Cash in Bank account for the month of December, 2020: a) Balances per bank statements: November 30, P107,800, and December 31, P115,200. b) Balances of cash in bank account in company's books: November 30, P82,725, and December 31, P113,400. c) Total receipts per books were P1,110,950 of which P6,050 was paid in cash to a creditor on December 24. d) Total charges in the bank statement during December were P1,094,850. e) Undeposited receipts were: November 30, P45,300 and December 31, P50,600. f) Outstanding checks were: November 30, P13,375, and December 31, P9,650, of which a check for P2,500 was certified by the bank on December 26. g) NSF checks returned, recorded as reduction of cash receipts, were: Returned by bank on December, recorded also in December, P5,200. Returned by bank on December but recorded in January, P4,300 h) Collections by bank not recorded by Company were P60,750 in November and P58,200 in December. i) Bank service charges not entered in company's books were: November 30, P3,750 and December 31, P2,100. j) A check for P4,750 of Found Company was charged to Pound Company in error. k) A check drawn for P4,200 was erroneously entered in the books as P2,400. QUESTIONS: Based on the above and the result of your audit, answer the following:
Transcribed Image Text:PROBLEM NO. 1 In connection with your examination, the Pound Company presented to you the following information regarding its Cash in Bank account for the month of December, 2020: a) Balances per bank statements: November 30, P107,800, and December 31, P115,200. b) Balances of cash in bank account in company's books: November 30, P82,725, and December 31, P113,400. c) Total receipts per books were P1,110,950 of which P6,050 was paid in cash to a creditor on December 24. d) Total charges in the bank statement during December were P1,094,850. e) Undeposited receipts were: November 30, P45,300 and December 31, P50,600. f) Outstanding checks were: November 30, P13,375, and December 31, P9,650, of which a check for P2,500 was certified by the bank on December 26. g) NSF checks returned, recorded as reduction of cash receipts, were: Returned by bank on December, recorded also in December, P5,200. Returned by bank on December but recorded in January, P4,300 h) Collections by bank not recorded by Company were P60,750 in November and P58,200 in December. i) Bank service charges not entered in company's books were: November 30, P3,750 and December 31, P2,100. j) A check for P4,750 of Found Company was charged to Pound Company in error. k) A check drawn for P4,200 was erroneously entered in the books as P2,400. QUESTIONS: Based on the above and the result of your audit, answer the following:
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