ACCT.PRINCIPLES (LL)-PACKAGE
14th Edition
ISBN: 9781119707103
Author: Weygandt
Publisher: WILEY
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In the process of your examination of the financial statements of the Malu-oy Company for the year ended December 31, 20X6, you obtained the following data on its current account. The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank credits in November was a customer’s note for P25,000 collected for the account of the company which the company recognized in December among its receipts. Included on the bank debits were cost of checkbooks amounting to P300 and a P10,000 check which was charged by the bank in error against Malu-oy Company account. Also in November, you ascertained that there were deposits in transit amounting to P20,000 and outstanding checks totaling P42,500. The bank statement for the month of December showed total credit of P104,000 and total charges of P51,000. The company’s books for December showed total receipts of P183,900, disbursements of P101,800 and a balance of P121,400. Bank debit memos for December were: No. 14334 for service…
1. In auditing the Maranao Company, you obtain directly from the bank, with which it does
business, the bank statement, canceled checks, and other memoranda which relate to
the company's bank account, for December 2021. In reconciling the bank balance at
December 31, 2021 with that shown on the company's book, you observe the facts set
forth below:
Balance per bank statement, 12/31/21
Balance per book, 12/31/2021
Outstanding checks, 12/31/21
Receipts of 12/31/21 deposited 1/02/2022
Service Charge for Nov. 2021 per Bank Memo of 12/15/21
Proceeds of Bank Loan, 12/15/21, discounted for 3 months at 25% per
annum, omitted from company's books
Deposit of 12/23/21 omitted from Bank Statement
Check of Tote's Products Co., charged back on 12/22/21 of absence of
88,219.12
58,983.46
32,108.42
4
5,317.20
3.85
9,875.00
7
2,892.41
counter-signature and redeposited with complete signature on
8
01/5/22,; no entry on the books having been made for the charge
back or the redeposit
417.50
Error on Bank…
You are the audit team assign to audit the unaudited set of financial statements for XYZ Company Ltd. for year ended 30 June 2002.
Prepare written report to highlight the audit procedures to be used to substantiate/confirm the amounts reported for following items on the financial statements provided: Purchases and accounts payable
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