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whats the answer in question 1?

whats the answer in question 1?

FINANCIAL ACCOUNTING
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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whats the answer in question 1?

Case 3 Pallas Company engaged the services of your firm to audit its financial statement. You were assigned to audit the cash balance of the entity as o December 31, 2021. The following information was taken from the ledge accounts of the entity: Cash Equivalents Cash in Bank– Metrobank Cash in Bank- Banco De Oro (BDO) Cash in Bank- Bank of the Philippine Islands (BPI) P950,000 1,780,000 700,000 3,000,000 Additional information: a. The cash equivalents account includes the following: Gift certificates received from a generous customer, P50,000. ASASTISS Page 195 oquivalents 150 days. maturing on 1/20/2022 future credit availability, this amount was included in the cash in account. e The BDO ledger account is composed of the following: Savings Account #74620 - P500,000 This pertains to a time deposit with a maturity of 30 days from balance sheet date. This was acquired on December 30, 2021 Savings Account #28473 - P500,000 This account is maintained specifically for acquisition of propen plant and equipment. This account is expected to be disbursed on March 15, 2023. • Checking Account #69240- (P300,000) This account is used for disbursement to pay various suppliers. The selected items below are part of the recorded disbursements in 2021 which are not yet encash from the bank as of the baiance sheet date: Check payable to a supplier dated 3/31/2021, P120,000 released 3/1/2021 Check payable to a supplier dated 12/30/2021, released 1/2/2022 Check payable to a supplier dated 12/31/2021, released 11/15/2021 Check payable to a supplier dated 1/7/2022, released 12/28/2021 Check payable to a supplier dated 1/3/2022, released 1/2/2022 85,000 104,000 97,000 88,000
Transcribed Image Text:Case 3 Pallas Company engaged the services of your firm to audit its financial statement. You were assigned to audit the cash balance of the entity as o December 31, 2021. The following information was taken from the ledge accounts of the entity: Cash Equivalents Cash in Bank– Metrobank Cash in Bank- Banco De Oro (BDO) Cash in Bank- Bank of the Philippine Islands (BPI) P950,000 1,780,000 700,000 3,000,000 Additional information: a. The cash equivalents account includes the following: Gift certificates received from a generous customer, P50,000. ASASTISS Page 195 oquivalents 150 days. maturing on 1/20/2022 future credit availability, this amount was included in the cash in account. e The BDO ledger account is composed of the following: Savings Account #74620 - P500,000 This pertains to a time deposit with a maturity of 30 days from balance sheet date. This was acquired on December 30, 2021 Savings Account #28473 - P500,000 This account is maintained specifically for acquisition of propen plant and equipment. This account is expected to be disbursed on March 15, 2023. • Checking Account #69240- (P300,000) This account is used for disbursement to pay various suppliers. The selected items below are part of the recorded disbursements in 2021 which are not yet encash from the bank as of the baiance sheet date: Check payable to a supplier dated 3/31/2021, P120,000 released 3/1/2021 Check payable to a supplier dated 12/30/2021, released 1/2/2022 Check payable to a supplier dated 12/31/2021, released 11/15/2021 Check payable to a supplier dated 1/7/2022, released 12/28/2021 Check payable to a supplier dated 1/3/2022, released 1/2/2022 85,000 104,000 97,000 88,000
Chapter 2: Audit of cash and c ash equivalents d. The details below are related to the BPI ledger account: A P100,000 customer's check payable to Pallas Company, dated January 2, 2022, was not included in the December 31, 2021 balance. AP120,000 check payable to Pallas Company which was deposited December 19, 2021 and included in the December 31, 2021 balance, was returned by the bank on December 30,2021 marked NSF. The check was redeposited on January 2, 2022 and cleared the bank January 4, 2022. A P750,000 check payable to a supplier and drawn on Pallas Company's account, was dated and recorded December 31,2021 but was not mailed until January 7, 2022. Determine the following as a result of your audit: 1. How much is the correct balance of cash equivalent as of December 31, 2021? 2. How much is the correct cash in Metrobank as of December 31, 2021? 3. How much is the correct cash in BD0 as of December 31, 2021? 4. How much is the correct cash in BPI as of December 31, 2021? 5. How much is the amount of cash and cash equivalents reported in its statement of financial position as of December 31, 2021?
Transcribed Image Text:Chapter 2: Audit of cash and c ash equivalents d. The details below are related to the BPI ledger account: A P100,000 customer's check payable to Pallas Company, dated January 2, 2022, was not included in the December 31, 2021 balance. AP120,000 check payable to Pallas Company which was deposited December 19, 2021 and included in the December 31, 2021 balance, was returned by the bank on December 30,2021 marked NSF. The check was redeposited on January 2, 2022 and cleared the bank January 4, 2022. A P750,000 check payable to a supplier and drawn on Pallas Company's account, was dated and recorded December 31,2021 but was not mailed until January 7, 2022. Determine the following as a result of your audit: 1. How much is the correct balance of cash equivalent as of December 31, 2021? 2. How much is the correct cash in Metrobank as of December 31, 2021? 3. How much is the correct cash in BD0 as of December 31, 2021? 4. How much is the correct cash in BPI as of December 31, 2021? 5. How much is the amount of cash and cash equivalents reported in its statement of financial position as of December 31, 2021?
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