What is the cash shortage as of Dec 31?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the cash shortage as of Dec 31?

Transcribed Image Text:BANK RECONCILIATION
The cashier prepared the bank reconciliation statement as of December 31, 2018, which included the following information:
Bank loan proceeds credited by the bank in December,
recorded in the books in Janiuary 3
Bank service charge for December, recorded in books in
January 3
Outstanding checks, P34,550 of which has been certified
by the bank
Check of Holmes Inc. charged by the bank in error on
December 28, 2018; corrected by the bank on
January 2, 2019 as per the cut-off bank statement
Deposit in transit
Cash per general ledger, December 31, 2018
Cash per bank statement, December 31, 2018
200.000
10,000
186,500
4,500
21,000
1,239,200
1,548,570
Audit note:
Cash collections from customers on account were erroneously recorded by the company as follows:
Date
Allowance for bad debts
Accounts receivable
Bad debt expense
Accounts receivable
7/05/18
42,000
42,000
12/15/18
21.000
21,000
CASH COUNT
From January 2. 2019, to January 10, 2019 the date of your cash count, total cash receipts appearing in the cash records for the said period amounted to P521.000. During the same period.
deposits clearing the bank amounted to P322,790. The following cash and cash items were on hand at the close of business on January 10, 2019:
P4,275
Currencies and coins
Customers checks
Dated January 4,
Dated January 6,
Dated January 10, NSF
Expense vouchers
15,200
4,000
10,775
22,250
Audit notes:
A. Check deposit on January 5, 2019, amounting to P12,000 was not recorded in the books.
B. Undeposited collections on January 10, 2019 amounting to P27,000 was also not recorded in the books.
What is the cash shortage as of December 31?
Xd
Ai
Dn
Ps
S
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