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What is the cash shortagefrom undeposited collections from january2 to january 10?

What is the cash shortagefrom undeposited collections from january2 to january 10?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the cash shortagefrom undeposited collections from january2 to january 10?
You were assigned to audit the financial statement of Home Corp. on January 10, 2019, for the year ended December 31, 2018. 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 January 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 7/05/18 Allowance for bad debts Accounts receivable Bad debt expense Accounts receivable 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: Currencies and coins Customers' checks Dated January 4, Dated Januanry 6, Dated January 10, NSF Expense vouchers P4,275 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 from undeposited collections from January 2 to January 10?
Transcribed Image Text:You were assigned to audit the financial statement of Home Corp. on January 10, 2019, for the year ended December 31, 2018. 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 January 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 7/05/18 Allowance for bad debts Accounts receivable Bad debt expense Accounts receivable 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: Currencies and coins Customers' checks Dated January 4, Dated Januanry 6, Dated January 10, NSF Expense vouchers P4,275 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 from undeposited collections from January 2 to January 10?
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