Two checks verified to have been recorded in 2021 cash disbursements book amounting to P22,000 appearing in the January 2022 cut-off bank statement are not traceable to the outstanding checks of the December 31, 2021 bank reconciliation prepared by the company’s personnel.Required: Adjusting Entries You have been engaged to audit FAR EASTERN COMPANY, a new client, for the year ended,December 31, 2021. The company prepared the trial balance set forth below, as of December 31,2021,theclose of its second year of operations.Account TitlesUnadjusted Trial BalanceDebitCreditCash112,600.00Marketable Securities72,000.00Allowance for decline in value of securitiesAccounts Receivable - Trade1,758,220.00Allowance for doubtful accounts40,000.00Accounts Receivable - OthersAdvances to affiliate48,000.00250,000.00Inventory, December 31, 2021Property, Plant and EquipmentAccumulated Depreciation2,770,000.00Accounts PayableIncome Tax PayableLong-term DebtOrdinary Share CapitalRetained EarningsRevaluation IncrementSalesCost of Sales2,269,604.00170,622.00Operating ExpensesOther Charges100,000.00Provision for Income Taxes (35%)80,954.00Discontinued Operations (Net)6,500.00Cumulative Effect of Change in Accounting Principle (Net)13,000.007,691,500.0020,000.0068,100.001,240,000.00408,616.0071,260.0060,000.002,042,000.00770,000.00240,000.002,771,524.007,691,500.00

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Two checks verified to have been recorded in 2021 cash disbursements book amounting to P22,000 appearing in the January 2022 cut-off bank statement are not traceable to the outstanding checks of the December 31, 2021 bank reconciliation prepared by the company’s personnel. Required: Adjusting Entries

Two checks verified to have been recorded in 2021 cash disbursements book amounting to P22,000 appearing in the January 2022 cut-off bank statement are not traceable to the outstanding checks of the December 31, 2021 bank reconciliation prepared by the company’s personnel. Required: Adjusting Entries

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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Determine the amount of Cash to be shown on Mickey Mouse’s Statement of Financial Position on December 31,2021
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Required information [The following information applies to the questions displayed below.] The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T-account for cash (summarized) are below. Martin Company's bank reconciliation at the end of April showed a cash balance of $21,500. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17 May 22 May 27 May 31 Balance, May 31 May 1 May 1 May 7 May 29 May 31 Debit Balance Balance #301 #302 #303 # 304 Checks Total Amount of Cash and Cash Equivalents $ 12,000 7,200 560 Cash (A) 21,500 9,000 11,000 7,200 5,200 21,840 BANK STATEMENT Deposits $ 9,000 12,000 7,200 560 5,200 1,900 11,000 Interest earned NSF check Service charge Credit Other # 301 May 2 # 302 May 4 #303 May 11 # 304 May 23 # 305 May 29 $ 180 340 90 Balance $ 21,500 30,500 18,500 11,300 22,300 21,740 21,920 21,580…