You are engaged to audit the books of Zumba Enterprises. From the records of the company, you gathered the following information: Zumba Enterprises started operation on October 2, 2017 with Zumba Enterprises investing P150,000 cash. The bank statement in December 2017 showed an ending balance of P130,500. Examination of the paid checks disclosed that checks totaling P4,500 were issued by the company in December 2017, and were presented for payment only in January 2018. Cash count as of December 31, amounted to P9,500. You were told by the cashier that P6,000 of these, in checks, were cash sales on December 29, 2017, deposited on January 3, 2018. The balance, in currency and coins, represents petty cash fund. Additional data: a. Accounts receivable subsidiary ledgers had a total balance of P70,000 at December 31, 2017. b. Supplier's unpaid invoices for merchandise totaled P60,000. c. The bank statement in October showed a bank credit for P98,000, dated October 2, 2017. Inquiry from the cashier disclosed that the amount represents proceeds of a 90-day, discounted bank note. P80,000 of this loan was paid by check in December 2017. d. Merchandise inventory at December 31, 2017 amounted to P30,000. e. Operating expenses paid during the period totaled P180,000; while merchandise purchases amounted to P250,000. f. The gross profit rate is 120% of cost.
You are engaged to audit the books of Zumba Enterprises. From the records of the company, you gathered the following information: Zumba Enterprises started operation on October 2, 2017 with Zumba Enterprises investing P150,000 cash. The bank statement in December 2017 showed an ending balance of P130,500. Examination of the paid checks disclosed that checks totaling P4,500 were issued by the company in December 2017, and were presented for payment only in January 2018. Cash count as of December 31, amounted to P9,500. You were told by the cashier that P6,000 of these, in checks, were cash sales on December 29, 2017, deposited on January 3, 2018. The balance, in currency and coins, represents petty cash fund. Additional data: a. Accounts receivable subsidiary ledgers had a total balance of P70,000 at December 31, 2017. b. Supplier's unpaid invoices for merchandise totaled P60,000. c. The bank statement in October showed a bank credit for P98,000, dated October 2, 2017. Inquiry from the cashier disclosed that the amount represents proceeds of a 90-day, discounted bank note. P80,000 of this loan was paid by check in December 2017. d. Merchandise inventory at December 31, 2017 amounted to P30,000. e. Operating expenses paid during the period totaled P180,000; while merchandise purchases amounted to P250,000. f. The gross profit rate is 120% of cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A. What is the adjusted balance per bank as of December 31, 2017?
B. The amount of cash overage (shortage) as of December 31, 2017 is?
Transcribed Image Text:You are engaged to audit the books of Zumba Enterprises. From the records of the company, you gathered the
following information:
Zumba Enterprises started operation on October 2, 2017 with Zumba Enterprises investing P150,000 cash. The
bank statement in December 2017 showed an ending balance of P130,500.
Examination of the paid checks disclosed that checks totaling P4,500 were issued by the company in December 2017,
and were presented for payment only in January 2018. Cash count as of December 31, amounted to P9,500. You
were told by the cashier that P6,000 of these, in checks, were cash sales on December 29, 2017, deposited on January
3, 2018. The balance, in currency and coins, represents petty cash fund.
Additional data:
a. Accounts receivable subsidiary ledgers had a total balance of P70,000 at December 31, 2017.
b. Supplier's unpaid invoices for merchandise totaled P60,000.
c. The bank statement in October showed a bank credit for P98,000, dated October 2, 2017. Inquiry from the
cashier disclosed that the amount represents proceeds of a 90-day, discounted bank note. P80,000 of this
loan was paid by check in December 2017.
d. Merchandise inventory at December 31, 2017 amounted to P30,0o00.
e. Operating expenses paid during the period totaled P180,000; while merchandise purchases amounted to
P250,000.
f. The gross profit rate is 120% of cost.
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