The following information were presented to you by Android Corporation in connection to your audit of its Cash in Bank account for the month of December 2020: A. Cash in bank account balances in company's books: November 30-P 1,876,500; December 31- P 1,576,500 B. Bank statement balances: November 30-P 1,875,000; December 31-P 2,025,000 C. Bank statement debits during December were P 1,950,000. D. Company collections not yet deposited to the bank: November 30-P 300,000; December 31 - P 229,500. E. Checks issued already credited in company's accounting books but not yet paid by the bank on November 30 were P 225,000. F. G. H. Bank credit errors: November 30-P 67,500; December 31-P 25,500. Bank debit errors: November 30-P 30,000; December 31-P 45,000. Bank credit memorandum indicating collection of notes receivable were P 187,500 in November and P 225,000 in December. I. Customer's NSF Check returned by bank were P 165,000 for November and P 112,500 for December. J. Customer's check amounting to P 31,500 was already deposited in November but recorded in the company's books as P 18,000. This was corrected in December.
The following information were presented to you by Android Corporation in connection to your audit of its Cash in Bank account for the month of December 2020: A. Cash in bank account balances in company's books: November 30-P 1,876,500; December 31- P 1,576,500 B. Bank statement balances: November 30-P 1,875,000; December 31-P 2,025,000 C. Bank statement debits during December were P 1,950,000. D. Company collections not yet deposited to the bank: November 30-P 300,000; December 31 - P 229,500. E. Checks issued already credited in company's accounting books but not yet paid by the bank on November 30 were P 225,000. F. G. H. Bank credit errors: November 30-P 67,500; December 31-P 25,500. Bank debit errors: November 30-P 30,000; December 31-P 45,000. Bank credit memorandum indicating collection of notes receivable were P 187,500 in November and P 225,000 in December. I. Customer's NSF Check returned by bank were P 165,000 for November and P 112,500 for December. J. Customer's check amounting to P 31,500 was already deposited in November but recorded in the company's books as P 18,000. This was corrected in December.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:SOLUTION:
1. Proof of Cash for the month of December 2020.
ANDROID CORPORATION
Proof of Cash
For the month of December 2020
Beginning
December, 2020
Disburse.
Ending
12/31/2020
11/30/2020
Receipts
Book balances, unadjusted
Customer's NSF Check:
November
December
Collection of Notes Receivable:
November
December
Book receipt error (P 31,500 - P 18,000)
Book balances, adjusted
Bank balances, unadjusted
Deposit in transit:
November
December
Outstanding checks:
November
December
Bank credit errors:
November
December
Bank debit errors:
November
December
Bank balances, adjusted
Transcribed Image Text:Preparation of Proof of Cash with Missing Outstanding Checks at end of year
The following information were presented to you by Android Corporation in connection to your audit of its Cash
in Bank account for the month of December 2020:
Cash in bank account balances in company's books: November 30 -P 1,876,500; December 31 -
P 1,576,500
Bank statement balances: November 30 – P 1,875,000; December 31-P 2,025,000
Bank statement debits during December were P 1,950,000.
Company collections not yet deposited to the bank: November 30 –P 300,000; December 31- P
А.
В.
C.
D.
229,500.
Checks issued already credited in company's accounting books but not yet paid by the bank on
November 30 were P 225,000.
Bank credit errors: November 30 -P 67,500; December 31 - P 25,500.
F.
G.
Bank debit errors: November 30 -P 30,000; December 31 -P 45,000.
Н.
Bank credit memorandum indicating collection of notes receivable were P 187,500 in November
and P 225,000 in December.
Customer's NSF Check returned by bank were P 165,000 for November and P 112,500 for
December.
I.
J.
Customer's check amounting to P 31,500 was already deposited in November but recorded in the
company's books as P 18,000. This was corrected in December.
Required:
1. Prepare Proof of Cash for the month of December 2020.
2. Prepare the necessary adjusting journal entries at December 31, 2020.
E.
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