n connection with your audit of the financial statements of Thanos Corporation for the year ended December 31, 2023, you conducted a surprise count of the company’s petty cash fund and undeposited collections at 8:20a.m. on January 3, 2024. Your count disclosed the following: Bills and coins Bills: Coins: P100.00 5 pieces 5.00 18 pieces 50.00 40 pieces 1.00 206 pieces 20.00 48 pieces 0.25 32 pieces Checks Date Payee Makers Amount December 30 Cash Custodian 1,200 December 30 Thanos Corporation Soul Stone Company 14,000 December 31 Thanos Corporation Reality Stone Company 1,680 December 31 Thanos Corporation Power Stone Company 17,800 December 31 Thanos Corporation Mind Stone Company 8,300 December 31 Space Stone Company Thanos Corporation 27,000 Unreimbursed vouchers Date Payee Description Amount December 23 Mr. Hulk, sales manager Advances for trip to Tagaytay City 20,000 December 28 Philippine Post Office Postage stamps 1,620 December 29 Messengers Transportation 150 December 29 Time Stone, Inc. Computer repair 800 Other items found inside the cash box: Unclaimed pay envelope of Scott Land. Indicated on the pay slip in his net salary of P9,200. Your inquiry revealed that Scott’s salary is mingled with the petty cash fund. The sales manager’s liquidation report for his Tagaytay City Trip. Cash advance received on December 23 20,000 Less: Hotel accommodation, meals, etc. 16,000 Bus fare two 1,200 Cash given to Natasha, sales man 1,000 18,200 Balance 1,800 Accounted for as follows: Cash returned by Natasha to the sales manager P 120 Personal check of the sales manager 1,680 Total 1,800 Additional information: 1. The custodian is not authorized to cash checks. 2. The last official receipt included in the deposit on December 30 is No. 4351 and the last official receipt issued for the current year is No. 4355. The following official receipts are all dated December 31, 2023. OR No. Amount Form of payment 4352 13,600 Cash 4353 17,800 Check 4354 3,600 Cash 4355 8,300 Check 3. The petty cash balance per general ledger is P20,000. The last replenishment of the fund was made on December 22, 2023. question: 3. The adjusting entries on December 31, 2023, should include a net debit to Travel expenses of 4. The cash count should include total checks of 5.What is the total cash shortage?
In connection with your audit of the financial statements of Thanos Corporation for the year ended December 31, 2023, you conducted a surprise count of the company’s petty cash fund and undeposited collections at 8:20a.m. on January 3, 2024. Your count disclosed the following:
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Bills and coins |
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Bills: |
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Coins: |
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P100.00 5 pieces |
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5.00 18 pieces |
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50.00 40 pieces |
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1.00 206 pieces |
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20.00 48 pieces |
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0.25 32 pieces |
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Checks |
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Date |
Payee |
Makers |
Amount |
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December 30 |
Cash |
Custodian |
1,200 |
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December 30 |
Thanos Corporation |
Soul Stone Company |
14,000 |
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December 31 |
Thanos Corporation |
Reality Stone Company |
1,680 |
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December 31 |
Thanos Corporation |
Power Stone Company |
17,800 |
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December 31 |
Thanos Corporation |
Mind Stone Company |
8,300 |
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December 31 |
Space Stone Company |
Thanos Corporation |
27,000 |
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Unreimbursed vouchers |
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Date |
Payee |
Description |
Amount |
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December 23 |
Mr. Hulk, sales manager |
Advances for trip to Tagaytay City |
20,000 |
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December 28 |
Philippine Post Office |
Postage stamps |
1,620 |
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December 29 |
Messengers |
Transportation |
150 |
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December 29 |
Time Stone, Inc. |
Computer repair |
800 |
Other items found inside the cash box:
- Unclaimed pay envelope of Scott Land. Indicated on the pay slip in his net salary of P9,200. Your inquiry revealed that Scott’s salary is mingled with the petty cash fund.
- The sales manager’s liquidation report for his Tagaytay City Trip.
Cash advance received on December 23 20,000
Less: Hotel accommodation, meals, etc. 16,000
Bus fare two 1,200
Cash given to Natasha, sales man 1,000 18,200
Balance 1,800
Accounted for as follows:
Cash returned by Natasha to the sales manager P 120
Personal check of the sales manager 1,680
Total 1,800
Additional information:
1. The custodian is not authorized to cash checks.
2. The last official receipt included in the deposit on December 30 is No. 4351 and the last official receipt issued for the current year is No. 4355. The following official receipts are all dated December 31, 2023.
OR No. Amount Form of payment
4352 13,600 Cash
4353 17,800 Check
4354 3,600 Cash
4355 8,300 Check
3. The petty cash balance per general ledger is P20,000. The last replenishment of the fund was made on December 22, 2023.
question:
3. The
4. The cash count should include total checks of
5.What is the total cash shortage?
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