The are the auditor of CK Company for the year ended, Dec. 31, 2020. The finance manager of the company presented the following information relating to cash balances: Petty Cash (Imprest fund balance) - P20,000 Cash in Bank – LBP (checking account) - 526,000 Cash in Bank – BDO (savings account) - 700,000 Cash in Bank – Metrobank (peso savings acct) - 200,000 Cash in Bank – Metrobank (dollar savings acct) - $2,000 The following information was gathered during the conduct of your audit: The total bills and coins as per cash count amounts to P3,000 A total of receipts amounting to P16,240 relating to travel expenses were unreplenished from PCF as of Dec, 31, 2020 The LBP account has the following transactions and details: Bank Statement Balance as of Dec. 31, 2020 – P700,000 A total of P50,000 Deposits in Transit Outstanding Checks amounting to P300,000 Total deposits already included in the bank but not yet recorded in the book, P70,000 A check that cleared the bank amounting to P140,000 was recognized in the company’s disbursement records at P14,000. Check disbursement of 20,000 issued by BSA Company, but erroneously deducted by the bank in the cash balance of CK Company The BDO savings account has the following transactions and details: 1. Bank Statement Balance as of Dec. 31, 2020 – P860,000 Total deposits already included in the bank but not yet recorded in the book, P160,000 The Metrobank accounts are restricted and allocated for the procurement of land and building. The closing rate for the year was $1 = P45 and the average was $1 = P40 Requirement: Answer the following (show your computation) Determine the cash shortage or overage on the petty cash fund, if there is any 2. How much is the adjusted cash balance of CIB-LBP Checking Account? 3. How much is the adjusted cash balance of CIB-BDO Savings Account? 4. How much is the combined balance of Metrobank Account (in pesos)? 5. How much should be reported as cash in te statement of financial position?

A petty cash fund is a small amount of cash set aside by a business for minor or incidental expenses…

Answered: Determine the cash shortage or overage…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

The are the auditor of CK Company for the year ended, Dec. 31, 2020. The finance manager of the company presented the following information relating to cash balances:

Petty Cash (Imprest fund balance) - P20,000 Cash in Bank – LBP (checking account) - 526,000 Cash in Bank – BDO (savings account) - 700,000 Cash in Bank – Metrobank (peso savings acct) - 200,000 Cash in Bank – Metrobank (dollar savings acct) - $2,000

The following information was gathered during the conduct of your audit:

The total bills and coins as per cash count amounts to P3,000
A total of receipts amounting to P16,240 relating to travel expenses were unreplenished from PCF as of Dec, 31, 2020
The LBP account has the following transactions and details:
Bank Statement Balance as of Dec. 31, 2020 – P700,000
A total of P50,000 Deposits in Transit
Outstanding Checks amounting to P300,000
Total deposits already included in the bank but not yet recorded in the book, P70,000
A check that cleared the bank amounting to P140,000 was recognized in the company’s disbursement records at P14,000.
Check disbursement of 20,000 issued by BSA Company, but erroneously deducted by the bank in the cash balance of CK Company
The BDO savings account has the following transactions and details: 1. Bank Statement Balance as of Dec. 31, 2020 – P860,000
Total deposits already included in the bank but not yet recorded in the book, P160,000
The Metrobank accounts are restricted and allocated for the procurement of land and building. The closing rate for the year was $1 = P45 and the average was $1 = P40

Requirement: Answer the following (show your computation)

Determine the cash shortage or overage on the petty cash fund, if there is any 2. How much is the adjusted cash balance of CIB-LBP Checking Account? 3. How much is the adjusted cash balance of CIB-BDO Savings Account? 4. How much is the combined balance of Metrobank Account (in pesos)? 5. How much should be reported as cash in te statement of financial position?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.