You are auditing Abra Inc's cash in bank for the year ended December 31, 2021. You assessed control risk over cash related cycles at the maximum level, thus you have decided to render an extensive substantive test procedure. As a result you ascertained the following information related to the company's bank reconciliation items for two months: November 30 December 31 Cash per books P82,350 P221,425 Cash per bank statements 535,410 689,085 Undeposited collections 41,005 ? Outstanding checks 138,590 Bank service charges 3,600 3,000 Insufficient fund check 4,250 Company's notes receivable collected by bank 359,075 404,500 The bank statement and the company's cash records show the following totals: Checks and debit memos per bank statement, P1,091,865 Cash receipts per cash records, P1,182,260 Cash disbursements per cash records, P1,043,185 Deposits and credit memos per bank statement, P1,245,540 The insufficient fund check was redeposited in the same month. The company recorded the receipt and the redeposit in its books. What is the adjusted cash in bank balance as of November 30?
You are auditing Abra Inc's cash in bank for the year ended December 31, 2021. You assessed control risk over cash related cycles at the maximum level, thus you have decided to render an extensive substantive test procedure. As a result you ascertained the following information related to the company's bank reconciliation items for two months: November 30 December 31 Cash per books P82,350 P221,425 Cash per bank statements 535,410 689,085 Undeposited collections 41,005 ? Outstanding checks 138,590 Bank service charges 3,600 3,000 Insufficient fund check 4,250 Company's notes receivable collected by bank 359,075 404,500 The bank statement and the company's cash records show the following totals: Checks and debit memos per bank statement, P1,091,865 Cash receipts per cash records, P1,182,260 Cash disbursements per cash records, P1,043,185 Deposits and credit memos per bank statement, P1,245,540 The insufficient fund check was redeposited in the same month. The company recorded the receipt and the redeposit in its books. What is the adjusted cash in bank balance as of November 30?
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash And Marketable Securities
Section: Chapter Questions
Problem 32MCQ
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![You are auditing Abra Inc's cash in bank for the year ended December 31, 2021. You assessed control risk over cash related cycles at the maximum level, thus you have decided to
render an extensive substantive test procedure. As a result you ascertained the following information related to the company's bank reconciliation items for two months:
November 30 December 31
Cash per books
P82,350
P221,425
Cash per bank statements
535,410
689,085
Undeposited collections
41,005
Outstanding checks
138,590
Bank service charges
3,600
3,000
Insufficient fund check
4,250
Company's notes receivable
collected by bank
359,075
404,500
The bank statement and the company's cash records show the following totals:
Checks and debit memos per bank statement, P1,091,865
Cash receipts per cash records, P1,182,260
Cash disbursements per cash records, P1,043,185
Deposits and credit memos per bank statement, P1,245,540
The insufficient fund check was redeposited in the same month. The company recorded the receipt and the redeposit in its books.
What is the adjusted cash in bank balance as of November 30?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd1c3471d-2717-411a-ac20-f6b64fe2fb12%2Fca2ff7bc-ebde-4b1e-bab7-bb59e8c50ef1%2Fb159hl6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You are auditing Abra Inc's cash in bank for the year ended December 31, 2021. You assessed control risk over cash related cycles at the maximum level, thus you have decided to
render an extensive substantive test procedure. As a result you ascertained the following information related to the company's bank reconciliation items for two months:
November 30 December 31
Cash per books
P82,350
P221,425
Cash per bank statements
535,410
689,085
Undeposited collections
41,005
Outstanding checks
138,590
Bank service charges
3,600
3,000
Insufficient fund check
4,250
Company's notes receivable
collected by bank
359,075
404,500
The bank statement and the company's cash records show the following totals:
Checks and debit memos per bank statement, P1,091,865
Cash receipts per cash records, P1,182,260
Cash disbursements per cash records, P1,043,185
Deposits and credit memos per bank statement, P1,245,540
The insufficient fund check was redeposited in the same month. The company recorded the receipt and the redeposit in its books.
What is the adjusted cash in bank balance as of November 30?
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