In the course of our audit of Ettedanreb Corporation’s cash in bank for the year ended December 31, 2016, you ascertained the following information: November 30 December 31 Cash per book 60,350 ? Cash per bank statement 535,410 689,085 Undeposited checks 41,005 64,400 Outstanding checks 138,590 150,560 Bank service charges 3,600 3,000 Insufficient fund check 41,250 Company’s notes receivable collected by bank 359,075 404,500 The bank statement and the company’s records show the following totals: Cash disbursements per bank statement 1,091,865 Cash receipts per cash records ? Cash disbursements per cash records ? Cash receipts per bank statement 1,245,540 Additional information: The insufficient fund check was redeposited in the same month. No entries are made to take up the return and redeposit. A P50,000 bank charge error in November was corrected by the bank in December, while a P20,000 deposit of House-boy Corporation was erroneously credited by the bank of the company’s account in December. A P19,000 disbursement check was recorded in November as P91,000. The error was discovered and corrected in December. A P20,000 customer collection was recorded in the books in December as P200,000, the error was detected and corrected in December. Questions: Based on the above audit findings, answer the following: What is the unadjusted book receipts in December? What is the unadjusted book disbursements in December? What is the corrected cash balance as of November 30? What is the unadjusted cash balance per books as of December 31? What is the correct cash balance as of December 31?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In the course of our audit of Ettedanreb Corporation’s cash in bank for the year ended December 31, 2016, you ascertained the following information:

	November 30	December 31
Cash per book	60,350	?
Cash per bank statement	535,410	689,085
Undeposited checks	41,005	64,400
Outstanding checks	138,590	150,560
Bank service charges	3,600	3,000
Insufficient fund check		41,250
Company’s notes receivable collected by bank	359,075	404,500

The bank statement and the company’s records show the following totals:
Cash disbursements per bank statement		1,091,865
Cash receipts per cash records		?
Cash disbursements per cash records		?
Cash receipts per bank statement		1,245,540

Additional information:

The insufficient fund check was redeposited in the same month. No entries are made to take up the return and redeposit.

A P50,000 bank charge error in November was corrected by the bank in December, while a P20,000 deposit of House-boy Corporation was erroneously credited by the bank of the company’s account in December.

A P19,000 disbursement check was recorded in November as P91,000. The error was discovered and corrected in December.

A P20,000 customer collection was recorded in the books in December as P200,000, the error was detected and corrected in December.

Questions: Based on the above audit findings, answer the following:

What is the unadjusted book receipts in December?
What is the unadjusted book disbursements in December?
What is the corrected cash balance as of November 30?

What is the unadjusted cash balance per books as of December 31?

What is the correct cash balance as of December 31?

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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