r audit client, VWX Corporation, set up a petty cash fund for the first time last October 1, 2021, for 000. Transactions related to the fund are as follows: October and November fund disbursements (before the November 15 replenishment) include the owing: sportation expense 4,500 pairs for office equipment 6.780 from employees 3.000 The fund was replenished on November 15 when the petty cash on hand total to 1.200. The check wn is enough to bring the petty cash balance to P20,000. The shortage is appropriately recorded by ur client. November (after the November 15 replenishment) and December disbursements include the owing: nsportation expense 3.600 fice supplies 2,200 fice furniture (purchased Dec. 31) 5,000 J from employees 800 Cash count related to the fund revealed currencies totaling to P3.400. The fund was replenished in nuary 2022. All supplies were used during the year.

r audit client, VWX Corporation, set up a petty cash fund for the first time last October 1, 2021, for 000. Transactions related to the fund are as follows: October and November fund disbursements (before the November 15 replenishment) include the owing: sportation expense 4,500 pairs for office equipment 6.780 from employees 3.000 The fund was replenished on November 15 when the petty cash on hand total to 1.200. The check wn is enough to bring the petty cash balance to P20,000. The shortage is appropriately recorded by ur client. November (after the November 15 replenishment) and December disbursements include the owing: nsportation expense 3.600 fice supplies 2,200 fice furniture (purchased Dec. 31) 5,000 J from employees 800 Cash count related to the fund revealed currencies totaling to P3.400. The fund was replenished in nuary 2022. All supplies were used during the year.

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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Question

Provided that the entity did not prepare year-end adjustinv jpurnal entry, how much is the 2021 net income overstated?

Your audit client, VWX Corporation, set up a petty cash fund for the first time last October 1, 2021, for
20,000. Transactions related to the fund are as follows:
. October and November fund disbursements (before the November 15 replenishment) include the
following:
Transportation expense
4,500
Repairs for office equipment
6,780
3.000
IOU from employees
● The fund was replenished on November 15 when the petty cash on hand total to 1.200. The check
drawn is enough to bring the petty cash balance to P20,000. The shortage is appropriately recorded by
your client.
D
November (after the November 15 replenishment) and December disbursements include the
following:
Transportation expense
3.600
Office supplies
2.200
Office furniture (purchased Dec. 31)
5.000
IOU from employees
800
●
Cash count related to the fund revealed currencies totaling to P3.400. The fund was replenished in
January 2022. All supplies were used during the year.

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