CHAPTER 3 - Audit of Cash & Cash Equivalents Problem 1
The “CASH “CASH”” accou account nt of Don Corpor Corporati ation’ on’s s ledger ledger on Decemb December er 31, !!" !!" sho#ed sho#ed the follo#ing$ a%
&ett &ett' ' c cas ash h fun fund d (in (incl clud udin ing g &), &),*! *!! ! unr unrep eple leni nish shed ed +oucher of #hich &,!! is dated -anuar' 3, !!). & 1*,!!! b% /e /edemption 0und Account &2 *!!,!!! c% Tra+eler’s chec4 1!!,!!! d% 5one' order 1!,!!! e% Treasur' bill, purchased December 1, !!" (due on 0eb% 1, !!). *!,!!! f% Time deposit due on 5arch 31, !!) *!,!!! g% 16!7da' Treasur' bill, due 5arch 1*, !!) 1!,!!! h% 2ote recei+able in the possession of a collecting agenc' !,!!! i% &2 Chec4ing Account 8117!!97!91 3*,9!! :% Cash on hand, including including customer postdated postdated chec4 of &1*,!!! 3,!!! 4% Sa+ings deposit, earmar4ed for ac;uisition of e;uipment 1!,!!! l% A che chec4 c4 pa'a pa'abl ble e to to San San ? >?mp mplo lo'e 'ees es for for Sem Semin inar ars s (no (no li;u li;uid idat atio ion n is re;uired. 6!,!!! ;% 5one' mar4et placement (due -une 3!, !!). "!!,!!! r% @isted stoc4 held as temporar' in+estment 1!!,!!! s% Chec Chec4 4 8)69 8)69 in pa'm pa'men entt to to Su Supp ppli lier ers, s, date dated d -an -anua uar' r' *, !!) !!) and and recorded December 31, !!"% 3*,!!! t% Customers’ certified chec4s 1!,!!! u% &ension 0und 1*!,!!! T=TA@ ,*"6,9!! Questions 1% The entr' to correct>ad:ust correct>ad:ust item 0 is$ a% a t>ad:u d:ust st item item @ is$ a% Accounts pa'able *!,!!! Ca Cash b% Cash *!,!!! =ther liabilities
*!,!!! *!,!!! *!,!!!
*!,!!! *!,!!! 1
c% Cash Accounts pa'able d% 2o ad ad:u :ust stme ment nt
*!,!!! *!,!!!
3% The entr' entr' to to correc correct>a t>ad:u d:ust st item item 5 is$ a%
1*!,!!! 1*!,!!! 1*!,!!!
% D=2 C=/&=/AT C=/&=/AT<=2’S <=2’S cash cash and cash cash e;ui+alents e;ui+alents balanc balance e at December December 31, !!" is$ a% =+e =+erst rstate ated d b' b' &1, &1,9*! 9*!,1! ,1!! ! c% =+erstated b' & 1,6*,1!! b% =+erstated =+erstated b' & 1,69*,1!! 1,69*,1!! d% =+erstated =+erstated b' & 1,)9*,1!! 1,)9*,1!! *% D=2 C=/&=/AT C=/&=/AT<=2 <=2’S ’S ad:usted ad:usted cash and cash cash e;ui+a e;ui+alent lents s balan balance ce at Decemb December er 31, !!" is$ a% & "1 "16,6!! b% & "3,6!! c% & ")3,6!! d% & )3,6!! Solution
a.
Operating expenses Cash b. Investment Cash c. No ad adjustment d. No adjustment e. No adjustment f. No adjustment g. hort!term investment Cash h. Notes receivab#e Cash i. No adjustment j. $ccounts receivab#e receivab#e Cash %. Cash & restricted Cash #. No adjustment m. Investment & current Cash n. No adjustment o. No adjustment p. Operating expenses expenses Cash (. hort!term investment Cash r. hort!term investment Cash s. No adjustment t. No adjustment u. Investment Cash $ns*er+ 1.
2
".
5,100 5,100 500,000 500,000
1"0,000 1"0,000 "0,000 "0,000 15,000 15,000 "10,000 "10,000 150,000 150,000
'0,000 '0,000 )00,000 )00,000 100,000 100,000
150,000 150,000
-. C
. $
5. $
c% Cash Accounts pa'able d% 2o ad ad:u :ust stme ment nt
*!,!!! *!,!!!
3% The entr' entr' to to correc correct>a t>ad:u d:ust st item item 5 is$ a%
1*!,!!! 1*!,!!! 1*!,!!!
% D=2 C=/&=/AT C=/&=/AT<=2’S <=2’S cash cash and cash cash e;ui+alents e;ui+alents balanc balance e at December December 31, !!" is$ a% =+e =+erst rstate ated d b' b' &1, &1,9*! 9*!,1! ,1!! ! c% =+erstated b' & 1,6*,1!! b% =+erstated =+erstated b' & 1,69*,1!! 1,69*,1!! d% =+erstated =+erstated b' & 1,)9*,1!! 1,)9*,1!! *% D=2 C=/&=/AT C=/&=/AT<=2 <=2’S ’S ad:usted ad:usted cash and cash cash e;ui+a e;ui+alent lents s balan balance ce at Decemb December er 31, !!" is$ a% & "1 "16,6!! b% & "3,6!! c% & ")3,6!! d% & )3,6!! Solution
a.
Operating expenses Cash b. Investment Cash c. No ad adjustment d. No adjustment e. No adjustment f. No adjustment g. hort!term investment Cash h. Notes receivab#e Cash i. No adjustment j. $ccounts receivab#e receivab#e Cash %. Cash & restricted Cash #. No adjustment m. Investment & current Cash n. No adjustment o. No adjustment p. Operating expenses expenses Cash (. hort!term investment Cash r. hort!term investment Cash s. No adjustment t. No adjustment u. Investment Cash $ns*er+ 1.
2
".
5,100 5,100 500,000 500,000
1"0,000 1"0,000 "0,000 "0,000 15,000 15,000 "10,000 "10,000 150,000 150,000
'0,000 '0,000 )00,000 )00,000 100,000 100,000
150,000 150,000
-. C
. $
5. $
Problem 2
The follo#ing items are found in the cash account of <+ie Compan' at December 31, !!"% The compan compan'’s '’s contro controlle llerr as4s as4s 'our 'our opinio opinion n #hethe #hetherr the items items listed listed belo# belo# shoul should d be considered as part of cash account and come up #ith ad:usting entr' to ad:ust the cash account% 1% %
Cust Custom omer ers’ s’ chec chec4 4 dat dated ed Dece Decemb mber er *, *, !! !!", ", &*, &*,!! !!!% !% Comp Compan an'’ '’s s chec chec4 4 (&3!, (&3!,!! !!!. !. dat dated ed Dec Decem embe berr ", !!" !!" #hi #hich ch #as #as dra dra#n #n in in pa'm pa'men entt for merchandise merchandise purchased on that that date but not deli+ered until -anuar' -anuar' 3, !!)% This chec4 #as deducted in the cash balance% 3% A chec4 #orth &19",! ",!!! from customer #ho paid the account net of the discount% The compan' records records the transaction as credit credit to Accounts /ecei+able /ecei+able for the proceeds% % Cas Cash in in clo clos sed ban4 an4 (Br (Brb ban a an4 n4.., &9* &9*,,!!!% !!!% *% /edemption fu fund, &1!!,!!! "% Sin4 Sin4in ing g fund fund,, &1!! &1!!,! ,!!! !!%% This This #il #illl be us used on on 5arc 5arch h 1, !! !!) ) to red redee eem m the the bond bonds s pa'able% )% 5etr 5e tro o an an4 4 Che Chec4 c4in ing g Acc Accou ount nt 2o% 2o% !!! !!!* *"6 "6,, &1 &1!, !,!! !!!% !% 6% /CC /CC Chec Chec4i 4ing ng Acco Accoun untt 2o% 2o% !!! !!!3 3), ), &11* &11*,! ,!!! !!%% 9% =+er =+erdr draf aftt in &2 &2 Che Chec4 c4in ing g Acco Accoun untt 2o% 2o% !!!1 !!!11 1*" *",, &*!, &*!,!! !!!% !% 1!% Compan Compan'’s '’s chec4 chec4 dated dated -anu -anuar' ar' 3, !!) !!) in pa' pa'men mentt of acc accoun ount, t, &*!, &*!,!!! !!!%% This This #as #as recorded in the compan'’s disbursement ledger at December 31, !!"% 11% 11% =+er =+erdr draf aftt in /CC /CC Che Chec4 c4in ing g Acco Accoun untt 2o% !!* !!*") ")91 91,, &1*, &1*,!! !!!% !% 1 % &ostage st stamps, &,!!!% 13% 9!7da' 9!7da' Treasu Treasur' r' ills ills (pur (purcha chase se o on n 2o+e 2o+embe mberr 1, !!"., !!"., &1!!,! &1!!,!!! !! 1% Treas Treasur' ur' ills ills that that matu matures res on 0ebrua 0ebruar' r' 1, !!), !!), &*!,!! &*!,!!!% !% 1* % Change fu fund, &1 &1!,!!!% 1"% 1"% Cust Custom omer ers’ s’ cert certif ifie ied d che chec4 c4,, &! &!,! ,!!! !!%% 1)% Compan Compan'’s '’s cert certifi ified ed chec4 chec4,, &*!,!! &*!,!!!% !% (This (This #as #as inclu included ded in the the cash cash disbu disburse rsemen mentt for December.% Questions 1% The entr' entr' to to correct> correct>ad:us ad:ustt item number number 3 is$ is$ a% Accounts recei+able ,!!! Sales discounts ,!!! b% Sales discounts ,!!! Accounts recei+able ,!!! c% Accounts recei+able ,!!! Sa Sales ,!!! d% 2o ad:ustments % The entr' entr' to to correct> correct>ad:us ad:ustt item numbe numberr 1! is$ is$ a% Accounts pa'able *!,!!! Cash *!,!!! b% =ther liabilities *!,!!! Ca Cash *!,!!! c% Cash *!,!!! Accounts pa'able *!,!!! d% 2o ad:u ad:ust stme ment nt 3% The entr' entr' to to correct> correct>ad:us ad:ustt item numbe numberr 1) is$ is$ a% Accounts pa'able *!,!!! 3
Cash b% Cash Accounts recei+able c% Cash Accounts pa'able d% 2o ad:ustments
*!,!!! *!,!!! *!,!!! *!,!!! *!,!!!
% The entr' to correct>ad:ust item number 1" is$ a% Accounts recei+able !,!!! Cash !,!!! b% Cash !,!!! Accounts pa'able !,!!! c% Cash !,!!! Accounts recei+able !,!!! d% 2o ad:ustments *% <
Item 1 Item " Item Item Item 5 Item ) Item / Item ' Item Item 10 Item 11 Item 1" Item 1Item 1 Item 15 Item 1) Item 1/
! Cash ! Cash ! Cash ! Other $ssets ! Investment ! Investment & current ! Cash ! Cash ! Current #iabi#it & Offset to cash & Offset to Cash & 2nused supp#ies & Cash as cash e(uiva#ents & hort!term investment & Cash & Cash & propert recorded as disbursement
$ns*er+ 1. 3
". $
-.
.
5.
Problem 3
our audit of the December 31, !!", financial statements of 5ato Corporation re+eals the follo#ing$ 1% % 3% % *% "%
Current account at &Com Current account at &2 Treasur' bills (ac;uired 3 months before maturit'. Treasur' bills (maturit' date is 1>31>!). &a'roll account 0oreign ban4 account 7 restricted (translated using the 1>31>!" eEchange rate. )% &ostage stamps 6% ?mplo'ees’ chec4s mar4ed “DA<0” 9% <=B from the +ice7president 1!% Credit memo from a supplier for a purchase returns 4
& (3*,!!!. "*,!!! !!,!!! *!!,!!! 1)*,!!! 9!!,!!! "!! 1!,!!! *!,!!! *,!!!
11% Tra+eler’s chec4 1% 5one' order 13% Compan'’s chec4 dated 1>3!>!" but not mailed at 'ear7end 1% &ett' cash fund (&,!!! in currenc' and eEpense receipts for (&",!!!.
"!,!!! 1!,!!! 3!,!!! 1!,!!!
Questions 1% The entr' to ad:ust the emplo'ees’ chec4s mar4ed “DA<0” is$ a% Accounts recei+able 1!,!!! Cash 1!,!!! b% Cash 1!,!!! Accounts recei+able 1!,!!! c% ?mplo'ees’ ad+ances 1!,!!! Cash 1!,!!! d% Cash 1!,!!! ?mplo'ees’ ad+ances 1!,!!! % 5AT= C=/&=/AT<=2’S ad:usted cash and cash e;ui+alents balance at December 31, !!" is$ a% & *"!,!!! b% & *,!!! c% & *1,!!! d% & *!9,!!! Solution
Current account at 4N3 reasur bi##s ac(uired - mos. 3efore maturit 4aro## account rave#er6s chec% 7one order Compan6s unde#ivered chec% 4ett cash fund O$8 $ns*er+ 1. C
)5,000 "00,000 1/5,000 )0,000 10,000 -0,000 ,000 5,000
3. 3
Problem 4
The controller of &acatang Compan' is attempting to determine the amount of cash to be reported on its December 31, !!" balance sheet% The follo#ing information is pro+ided$ a% b% c% d% e% f% g%
h%
Commercial sa+ings account of &1,!!!,!!! and a commercial chec4ing account balance of &9!!,!!! are held at &hil% an4ing Corporation% 5one' mar4et fund account held at Allied an4, &"!!,!!! Tra+el ad+ance of &16!,!!! for eEecuti+e tra+el for the first ;uarter of neEt 'ear (emplo'ee to reimburse through salar' reduction. A separate fund in the amount of &1,*!!,!!! is restricted for the retirement of long7 term debt% &ett' cash fund, &*,!!! An <=B from Da+id Santos, a compan' officer, in the amount of &1!,!!!% A ban4 o+erdraft of &11!,!!! has occurred at one of the ban4s the compan' uses to deposit its cash receipts% At the present time, the compan' has no other deposits at this ban4% The compan' has t#o certificates of deposit, each totaling &*!!,!!!% These certificates of deposit ha+e a maturit' of 1! da's%
5
i%
&acatang Compan' has recei+ed a chec4 that is dated -anuar' 1, !!) in the amount of &1*,!!!% :% Currenc' and coins on hand amounted to &*,3!!% Questions 1% &ACATA2F C=5&A2’S ad:usted cash and cash e;ui+alents balance at December 31, !!" is$ a% & 1,91!,3!! b% & ,!!,3!! c% & ,*1!,3!! d% & 3,*1!,3!! % The tra+el ad+ance of &16!,!!! for eEecuti+e tra+el should be classified as$ a% Accounts recei+able c% &repaid eEpenses b% Tra+el eEpenses d% Ad+ances to emplo'ees Solution Commercia# savings account Commercia# chec%ing account 4ett cash fund Currenc and coin on hand $mount of cash to be reported on ba#ance sheet at 1".-1.09": 9-: 9: 9): 9/:
7one mar%et fund acct. rave# advance for executive trave# 9emp#oee to reimburse through sa#ar deduction: 3ond =etirement >und IO2 from compan officer 3an% overdraft 9the co. has no other deposits at this ban%:
9': 9:
Certificates of deposit 9maturit of 1"0 das 4ostdated chec% ?anuar 1", "00
$ns*er+ 1. $
41,000,000 00,000 5,000 5,-00 41,10,-00 7; or emp. Investments $dvances to
".
Problem 5
&resent :ournal entries to record the follo#ing transactions in the boo4s of 5arites Corporation, #hich uses a calendar 'ear as accounting period% Assume that the compan' is using the imprest method in accounting for pett' cash fund$ a% A pett' cash fund #as set up on 2o+ember 1, !!" in the amount of &,!!% b% =n 2o+ember 9, !!", a chec4 #as issued to replenish the fund, the composition of #hich #as as follo#s$ Currenc' bills and coins 1"" ouchers sho#ing eEpenditures for$ =ffice supplies )! Charges from purchased of supplies 1 /epairs and maintenance 3*! Gages paid to casual emplo'ees 9*! Charges from purchased of goods to be sold !! c% =n December 16, !!", the fund #as replenished and correspondingl' increased to &3,!!! its composition included the follo#ing$ Currenc' bills and coins 1*6 ouchers sho#ing eEpenditures for$ Store supplies 3! Accounts pa'able 91 6
Charges from purchased of goods to be sold 5iscellaneous eEpenses
)6
d% An eEamination on December 31, !!", disclosed the follo#ing composition of the fund, although it #as not replenished on this date$ Currenc' bills and coins 9*6 Chec4 of office manager, dated -anuar' *, !!) 1,!!! ouchers sho#ing eEpenditures for$ =ffice supplies 1" 5iscellaneous eEpenses 9! Accounts pa'able 6!! e% =n -anuar' *, !!), the chec4 of office manager #as cashed and the proceeds #ere added to the pett' cash fund% f%
=n -anuar' ", !!), replenished disbursement from December 16, !!" to -anuar' *, !!)%
Questions 1% The entr' to record the 2o+ember 9 replenishment of pett' cash fund is$ a% =perating eEpenses 1,"9 0reight7in !! Cash short>o+er 1! Cash ,3 b% =perating eEpenses ,3 &ett' cash fund ,3 c% =perating eEpenses 1,"9 0reight7in !! Cash short>(o+er. 1! &ett' cash fund ,3 d% 2o entr' since the compan' is using an impress fund s'stem% % The ad:usted &ett' Cash 0und balance of 5A/o+er " &ett' cash fund 1,! b% =perating eEpenses 1" Accounts pa'able 6!! Cash short>o+er " Cash 1,! c% =perating eEpenses 1" Accounts pa'able 6!! Ad+ances emplo'ees 1,!!! Cash short>(o+er. " &ett' cash fund ,! d% 2o entr' since there is no replenishment 'et%
7
% The entr' to record the -anuar' ", !! replenishment of pett' cash fund is$ a% =perating eEpenses 1" Accounts pa'able 6!! Cash short>o+er " &ett' cash fund 1,! b% =perating eEpenses 1" Accounts pa'able 6!! Cash short>o+er " Cash 1,! c% =perating eEpenses 1" Accounts pa'able 6!! Ad+ances emplo'ees 1,!!! Cash short>(o+er. " Cash ,! d% 2o entr' since the account has been ad:usted on December 31% Solution
a.
4ett cash fund Cash b. Operating expenses >reight!in Cash short;over Cash c. Operating expenses $ccounts paab#e >reight!in Cash 4ett cash fund Cash d. Operating expenses $dvances to emp#oees $ccounts paab#e Cash short;over 4ett cash fund =eversing entr & ?anuar 1 4ett cash fund Operating expenses $dvances to emp#oees $ccounts paab#e Cash short;over e. f.
No entr Operating expenses $ccounts paab#e Cash short;over Cash $ns*er+ 1. $ ".
",00 ",00 1,) 00 10
C$> $ccountabi#it hortage
",")0 ",00
C$> $ccountabi#it hortage
",00 ",00
C$> $ccountabi#it hortage
", -,000
10
","- 1,0') 1 ""
0
","" )00 )00 "1) 1,000 '00 ")
")
",0"
",0" "1) 1,000 '00 ")
"1) '00 ") 1,0" -. C
. 3
Problem 6
our audit of the pett' cash (&1!,!!!. of -uliet Compan' as of December 31, !!" re+ealed the follo#ing$ (cash count date is -anuar' 3, !!) at *$!! pm. ills$ 1! 7 &*!! bill 1* 7 &1!! bill 16 7 &*! 1* 7 &! * 7 &1! Coins$ &16! in &* pieces & in &1%!! pieces &3 in &!%* pieces% 8
<=B’s submitted #ere$ Dec% 16 Dec% 6 Dec% 3! Cashed chec4s$ Dec% 6, !!" Dec% 6, !!" Dec% 3!, !!" -an 1, !!)
2ap /% 7 /uel /% Sonn' S% chec4 chec4 chec4 chec4
& )*! 1* *!!
dra#n dra#n dra#n dra#n
b' b' b' b'
the manager an emplo'ee a customer an emplo'ee
& 1,1* *!! 3*! 1,*!
The cashier informed 'ou that o#ing to the lac4 of cash it #as necessar' for him to open certain pa'roll en+elopes unclaimed b' emplo'ees and use the cash found herein% The' #ere as follo#s$ Dec% 1*, !!" 7 ?d A% & 1,*! Dec% 3!, !!" 7 Ando' 1,)*! Dec% 3!, !!" 7 5ac4' "*! Dec% 3!, !!" 7 &aI 1,!!! The cashier also informed 'ou that all cash sales receipts #ere passed through his fund and that cash sales tic4ets 2os% !*9 to !"1 under dates of Dec% 3!, -an% 3 and -an% for &3*!, *!! and &**, respecti+el', had not 'et been turned o+er to the general cashier% The pett' cash +ouchers found in the pett' cash boE #ere as follo#s$ Dec% 3!, !!"Transportation &*1* Dec% 3!, !!"To4en gifts to +isitors "*! Dec% 3!, !!"0reight for office supplies purchase 1* -an% 1, !!) 0reight for mdse% purchased 1* -an% , !!) 0reight for mdse% sold *)* Questions 1% -B@
d% & 3)%)*
% The ad:usted pett' cash balance of -B@
Solution Cash Count 3i##s Coins IO2s Chec%s @ouchers C$> $ccountabi#it 4C> per #edger 2nc#aimed paro## 2ndeposited sa#es Cash shortage
$NA<=+ 1. 3
/,/50 "5 1,-/5 -,""5 ",0'0 1,)/5 910,000: 9 ,)50: 9 1,-5 : 1,-/0
".
-. C
ue to custodian 4ett cash fund $dvances to emp#oees 4ett cash fund
1,-/0 1,-/0 1,-/5 1,-/5
Cash a#es
-50 -50
$dvances to emp#oees 4ett cash fund
1,"50
Cash $ccrued sa#aries
,)50
Operating expenses 4ett cash fund
1,-'0
. 3
1,"50
,)50
1,-'0 5. 3
Problem 7
ou are ma4ing an audit of the Dar#in Corporation for the past calendar 'ear% The balance of the &ett' Cash account at December 31, !!" #as &1,3!!% our count of the imprest cash count made at 6$3! am on -anuar' 3, !!), in the presence of the pett' cash custodian, re+ealed$ Currenc' and coins
*)1%36
Chec4s$ Date 1>6>!" 1>9>!" 1>31>!" !1>!>!) !1>1!>!)
5a4er an4 5ac4', +ice7president &2 3"!%!! And', emplo'ee D& "!%!! obot, customer /CC 1*3%6! 2eil, customer &2 11%3" -eff, emplo'ee &2 "!%!! (chec4 recei+ed Dec% 9. (These chec4s #ere all considered good #hen deposited after dates sho#n on the chec4s% The first four chec4s #ere actuall' deposited -an% 3 the last chec4 #as deposited -an% 11 all fi+e chec4s pro+ed to be good%.
ouchers$ Dec% 11
Dec% 6 Dec% 9 Dec% 31 -an% <=B
10
8"1 /ichard, shipping cler4 temporar' ad+ance for the use of the recei+ing department% our count of 5r% /ichard’s fund re+ealed$ currenc' &6%6! merchandise freight bills, &31%!% & "!%!! 8 3!1 &ostage 1%!! 8 3! 0reight bill on merchandise purchases )%3! 8 3!* 0reight bill on office supplies 66%93 8 *!! 0reight bill on merchandise purchases 9%3"
Dec% 1
5abel, emplo'ee
3"%!!
Sales
&ostage Stamps$ Three one7peso stamps% The pett' cashier handled postage stamps% stamps represent the unused stamps purchased on oucher 8 3!1% Questions 1% The pett' cash fund shortage at December 31, !!" is$ a% & 1"%39 b% & 13%63 c% & 96%!3
These
d% & 9*%!3
% The ad:usted pett' cash fund balance of DA/G<2 C=/&=/AT<=2 at December 31, !!" is$ a% & 9!!%) b% & 9"!%) c% & 1,1)%* d% & 1,3%* 3% DA/G<2 C=/&=/AT<=2’S operating eEpenses found in the pett' cash fund at December 31, !!" is$ a% & !6%3 b% & !*%)* c% & 1)%!3 d% & 9)%93 % The Cash account (eEcluding &C0. of DA/G<2 C=/&=/AT<=2 is understated at December 31, !!" b'$ a% & 39*%1" b% & )3%6! c% & 1*3%6! d% & 1!%!! Solution Cash count Currenc and coins Chec%s @ouchers IO2 C$> $ccountabi#it 4C> per #edger 2ndeposited sa#es Cash shortage
5/1.-' /55.1) "-/.5 -).00 1,)00.191,-00.00: 9 -5.1): 5.0-
ue to custodian 4C> Cash a#es 9IB-"' -15: $dv. to emp#oee 4C> $dv. to emp#oee Operating expenses >reight!in 4C> >reight!in $dv. to emp#oee
5.05.0"/-.'0 "/-.'0 )0.00 )0.00 )0.00 100./.-0 "0'."-1."0 -1."0
$dv. to emp#oee 4C>
-).00
2nused postage
-.00
-).00
11
Operating expenses $ns*er+ 1.
". $
-.
-.00
. 3
Problem 8
* pieces ! pieces 3* pieces ) pieces
Coins &1%!! !%*! !%*
!* pieces 1" pieces 3 pieces
4ostage stamps (unused. 7 &3"* Chec%s Date Dec% 3! Dec% 3! Dec% 31 Dec% 31 Dec% 31 Dec% 31
&a'ee Cash /e'es Corp% /e'es Corp% /e'es Corp% /e'es Corp% 5err' Corp% (not endorsed.
2nreimbursed vouchers Date &a'ee Dec% 3 Sher'l, sales mgr% Dec% 6 &ost =ffice Dec% 9 5essengers Dec% 9 Ace,
5a4er Custodian Jarren,
Amount & 1,!! 1,!!! 1,"6! 1),6!! 6,3!! ),!!!
Description Ad+ance for trip &ostage stamps Transportation Computer repair
Amount & ),!!! 1,"! 1*! 6!!
Other items found inside the cash box+ 1%
Bnclaimed pa' en+elope of -eanette%
%
The sales manager’s li;uidation report for this aguio Trip% Cash Ad+ance recei+ed on Dec% 3 @ess$ Hotel accomodation, meals, etc% & ,*!! us fare for t#o !! Cash gi+en to Carlo, salesman 3!! alance Accounted for as follo#s$ Cash returned b' Carlo to the sales manager &ersonal chec4 of the sales manager
12
& ),!!!
*,!! & 1,6!! &
1! 1,"6!
Total
& 1,6!!
$dditiona# information+ 1% The custodian is not authoriIed to cash chec4s% % The last official receipt included in the deposit on December 3! is 2o% 3*1 and the last official receipt issued for the current 'ear is 2o% 3**% The follo#ing official receipts are all dated December 31, !!"% =/ 2o% 3* 3*3 3* 3**
Amount & 13,"!! 1),6!! 3,"!! 6,3!!
0orm of &a'ment Cash Chec4 Cash Chec4
3% The pett' cash balance per general ledger is &1!,!!!% fund #as made on December , !!"%
The last replenishment of the
Questions 1% /??S C=/&=/AT<=2’S cash shortage>o+erage at December 31, !!" is$ a% & "1,1"" short c% & 3,1"" o+er b% & !,1"" short d% & ,*1 o+er % The ad:usted pett' cash balance of /??S C=/&=/AT<=2 at December 31, !!" is$ a% & ,9" b% & ,11! c% & 1,!! d% & 3! 3%
The undeposited sales>collection of /??S C=/&=/AT<=2 at December 31, !!" is$ a% & "",6! b% & ",6!! c% & *),3!! d% & 3,3!!
Solution 3i##s and coins Chec%s @ouchers C$> $ccountabi#it 4C> per #edger 2ndeposited sa#es & *ith receipts 2nc#aimed paro## 2nendorsed chec% 2ndeposited sa#es & *ithout receipts Chec% endorsed b sa#es manager Cash shortage
-,/) ),'0 ,5/0 '-,-1 910,000: 9-,-00: 9 /,500: 9"/,000: 91,000: 9 1,)'0: 9"0,1)):
ue to custodian Cash
"0,1))
Cash a#es 9*ith and *ithout receipts:
5/,-00
"0,1))
5/,-00
Cash $ccrued sa#ar
/,500
4ett cash fund $dvances to emp#oees
1,)'0
$dvances to emp#oees
/,500
1,)'0 /,000
13
Operating expenses 4ett cash fund
",5/0
Operating expenses $dvances to emp#oees
5,0'0
$ns*er+ 1. 3
,5/0
". 3
5,0'0
-. C
Problem 9
5ar' -ane is the cashier of Adla#an Corporation% AS representati+e of the Karate and Associates, C&As, 'ou #ere assigned to +erif' her cash on hand in the morning of -anuar' 3, !!)% ou began to count at 9$!! A5 in the presence of 5ar' -ane%
(. &*!!
(6. &1!!
Coins$
& *%!! 1%!! !%* !%1! !%!*
11 loose loose * rolls and 3 loose (*! pieces to a roll. 1! rolls and 1* loose (*! pieces to a roll. 1 rolls and ! loose (! pieces to a roll.
Chec4s$ Date 1>>!" 1>">!"
5a4er i+ian, Asst% 5gr 5ar' -ane, cashier
<=Bs$ Date 1>!>!" 1>>!" 1>>!"
5a4er ap, -anitor 0eliE, cler4 Abla', boo44eeper
(1. &*!
(*. &!
&a'ee Adla#an Corp% Adla#an Corp%
Amount & ",!!! ,!!!
Amount & *!! )*! *!!
&?TT CASH =BCH?/S 0=/ /?&@?21">!" Gagan, messenger Ad+ances to emplo'ees 1>1)>!" 5aren and Co% Supplies 1>16>!" ?eman @iner 0reight in 1>16>!" &osts =ffice Supplies 1>!>!" Ale:andre, carpenter /epairs 1>1>!" iolan 5iscellaneous eEpense
Amount &1,!!!%!! **%!! 96%*! 3!!%!! ,9*!%!! **%!!
our in+estigation also disclosed the follo#ing$ 1% The balance of pett' cash fund per boo4s is &!,!!!%!!% % Cash sale of -anuar' , !!) amounted to &6,"*! per sales records, #hile cash receipts boo4 and ban4 deposit slip sho#ed that onl' &),"*! #as deposited in the ban4 on -anuar' 3, !!) 3% The follo#ing emplo'ees’ pa' en+elopes had been opened and the mone' remo+ed% ?ach en+elope #as mar4ed “Bnclaimed” 7 ?rnesto, &33%*! Secinando, &)%*!% Questions 14
1% The pett' cash shortage of AD@AGA2 C=/&=/AT<=2 at December 31, !!" is$ a% & ,)6%*! b% & 1,)6%*! c% & 9"6%*! d% & 166%*! % The ad:usted pett' cash balance of AD@AGA2 C=/&=/AT<=2 at December 31, !!" is$ a% & 1!,9*! b% & 11,9*! c% & 11,)3! d% & 1,)3! 3% The undeposited sales>collection of AD@AGA2 C=/&=/AT<=2 at December 31, !!" is$ a% & 6,"*! b% & ),"*! c% & 1,!!! d% & ! Solution Cash count 3i##s and coins Chec%s IO2s 4C> @ouchers C$> $ccountabi#it 4C> per #edger 2neposited sa#es 2nc#aimed paro## Cash shortage
",/-0.00 10,000.00 1,/50.00 ),--1.50 "0,'11.50 9"0,000.00: 9 1,000.00: 9 /'0.00: )'.50
ue to custodian 4ett cash fund
". $
)'.50
$dv. to emp#oees 4ett cash fund
1,/50.00
$dv. to emp#oees Operating expenses >reight!in 4ett cash fund
1,000.00 ,-.00 '".50
Cash $ccrued sa#ar $ns*er+ 1. C
)'.50
1,/50.00
),--1.50 /'0.00 /'0.00
-.
Problem 10
& )*,!!! 36*,!!! 1,6*!,!!! *,!!! 1*,!!! 1*!,!!! 16*,!!! !3,!!! 9"!,!!! 16,*!! !!,!!! *!,!!! 9*!,!!! 3!,!!! 3!!,!!! *,!!! !!,!!!
Questions 1% The correct cashier’s accountabilit' at December 31, !!" is$ a% & 1,93,!!! b% & 1,13,!!! c% & )93,!!!
d% & 3,!!! 15
% A2F?@A C=/&=/AT<=2’S cash account at December31, !!" is$ a% Bnderstated b' & 3!),!!! c% =+erstated b' & "93,!!! b% Bnderstated b' & 393,!!! d% =+erstated b' & ")),!!!
Solution
4roceeds from co##ection of accounts receivab#e 4roceeds from cash sa#es 4roceeds from ban% #oan 4roceeds from issuance of capita# stoc% 9450,000 & 4"50,000: 4ament of accounts paab#e 4ament of short!term ban% #oan 4urchase of fixed assets ota# $ccountabi#it ota# Cash Cash shortage D $ccounts =eceivab#e 3eg. ba# "/5,000 Co##ection Cr. a#es 1,'0,000 Arite!off =ecover 15,000 1,//0,000
1,-)0,000 D -/0,000 -00,000 /00,000 9 /1/,000: DD 9 "00,000: 9 -"0,000: 1,-,000 1,100,000 --,000
1,-)0,000 s(ueeEe figure "5,000 FFFFFFFF 1,-'5,000
"00,000 ",000 DDD 1,1",000 "5,000
DDD 3eg. Inv. "0-,000 4urchases ",000 G$ 1,15,000
Problem 11
The follo#ing data are gathered from the cash boo4s and ban4 statement recei+ed from Da+ao an4 b' Frace Compan'$ The cash in ban4 ledger account sho#s a debit balance of &9!,36%*! as of 5a' 31% The ban4 statement sho#s a credit balance of &316,*"! as of 5a' 31% An eEamination of the chec4s encashed b' the ban4 sho#s that the follo#ing chec4s are not presented for pa'ment$ 2o% 16), &3,"!6 2o% 169, &1*,99 2o% 191, &,!! 2o% 19, &1,**%*!, 2o% 193, &3,!!1 A certified chec4 for &,)*! pa'able to creditor, #as encashed b' the ban4 during 5a'% The ban4 statement sho#s a deduction of &1!,6! for chec4 2o% 16% actuall' made out at &1!,!6%
The chec4 #as
A chec4 deposited on 5a' ) for &3,1!! #as returned b' the ban4 on 5a' 6 mar4ed =efer to 7a%er % A non7interest bearing note for &,!!! #as collected b' the ban4 for the account Frace Compan'% Collection fee deducted b' the ban4 is &33!% 16
A deposit for &!,9!! #as recorded in the boo4s t#ice% Chec4 2o% 1)9 for &",!! #as erroneousl' recorded in the boo4s as &",!!%
d% & )3,1"6%*!
% The recorded cash of F/AC? C=5&A2 at 5a' 31 is$ a% Bnderstated b' & 1),)! c% =+erstated b' & ),1*! b% Bnderstated b' & ),1*! d% =+erstated b' & 1),)! Solution
2nadjusted 3oo% ba#ance =eturned chec% Co##ection of Notes
"0,-'.50 9-,100.00: -,)/0.00 9"0,00.00: 1,'00.00 9 1,-"0.00 : "/,5''.50
2nadjusted 3an% ba#ance -1',5)0.00 Outstanding chec%s 9',05-.50:
$djusted ban% ba#ance
FFFFFFFFF "/,5''.50
$djusting entr+ $ccounts receivab#e Cash Cash Co##ection fee Notes receivab#e $ccounts receivab#e Cash Cash $ccounts paab#e Interest expense Cash $ns*er+ 1. C
-,100 -,100 -,)/0 --0 ,000 "0,00 "0,00 1,'00 1,'00 1,-"0 1,-"0
". 3
Problem 12
The follo#ing data pertaining to the cash transactions and ban4 account of Abiso Compan' for 5a' !!" are a+ailable to 'ou$ Cash balance, per accounting records, 5a' 31, !!" Cash balance, per ban4 statement, 5a' 31, !!" an4 ser+ice charge for 5a' Debit memo for the cost of printed chec4s deli+ered b' the ban4 the charge has not been recorded in the accounting records =utstanding chec4s, 5a' 31, !!" Deposit of 5a' 3! not recorded b' ban4 until -une 1 &roceeds of ban4 loan on 5a' 3!, not recorded in the accounting records, net of interest of &9!! &roceeds from a customer’s promissor' note principal amount &,!!!,
& *1,*6 9*,6) 3) 3)* !,16 1,"1! 1),1!!
17
collected b' the ban4, ta4en up in the boo4s #ith interest Chec4 2o% 1!6" issued to a supplier entered in the accounting records as &",3!! but deducted in the ban4 statement at an erroneous amount of Stolen chec4 lac4ing an authoriIed signature, deducted from Abiso’s account b' the ban4 in error Customer’s chec4s returned b' the ban4 mar4ed 2S0, indicating that the customer’s balance #as not ade;uate to co+er the chec4s no entr' has been made in the accounting records to record the returned chec4
,3!!
3,"!! ,!!
,6!
Questions 1% The ad:usted cash in ban4 balance of A $djusted ba#ance
3oo% 51,5'" 9 -"/: 9 -/5:
3an% 5,'/
9"0,1': 1,)10 1/,100 ",-00 9 ",/00: ",00 FFFFFFFFFF 0,000
9 ","'0: 0,000
$djusting entr+ ervice charge Cash
-"/
ervice charge Cash
-/5
Cash 4repaid interest 3an% #oan
1/,100 00
Cash Note receivab#e Interest income
",-00
$ccounts receivab#e Cash $ns*er+ 1. 3 ". C
-"/
-/5
1',000
",000 -00 ","'0 ","'0
Problem 13
December 31, !!" alance per ledger, 1>31>!3 Add$ Collections recei+ed on the last da' of December and charged to “Cash in an4” on boo4s but not deposited Debit memo for customer’s chec4s returned unpaid (chec4 is on hand but no entr' has been made on the boo4s. Debit memo for ban4 ser+ice charge for December Deduct$ =utstanding chec4s (see details belo#. Credit memo for proceeds of a note recei+able #hich had been left at the ban4 for collection but #hich has not been recorded as collected Chec4 for an account pa'able entered on boo4s as &1,"* but dra#n and paid b' ban4 as 1",* Computed balance Bnlocated difference alance per ban4 (chec4 to confirmation. @
& 3,39%)
*,3%*!
,!!!%!! 1,!!!%!! & ",")%
& 16,"*
6,!!!
3,"!!
3,*%!! & 1,9% 3","!1%!! & *1,!*!%
Amount & *,6! 1,9* 3,*3 ,!!1 ,69 *,!) & 16,"*
Questions+ 1% The ad:usted cash balance at December 31, !!" is$ a% & 33,)9%) b% & 3,99%) c% & 3),)9%)
d%&!,99%)
% A chec4 for an account pa'able entered on boo4s as &1,"* but dra#n and paid b' ban4 as 1",* a% Should not be included in the reconciliation since the ban4 alread' ga+e the mone' to the pa'ee% b% Should not be included in the reconciliation since ban4’s record is al#a's follo#ed% c% Should be included as deduction in the boo4 reconciliation since this is considered as boo4 error, thus a reconciling item% d% Should be included as addition in the boo4 reconciliation since this is considered as boo4 error, thus a reconciling item% 3% The outstanding chec4s at December 31, !!" is$ a% & 1*,!* b% & 16,"* c% & 19,!*
d% & ,"*
% The cash balance of the compan' per record at December 31, !!" is$ 19
a% =+erstated b' &"!! b% =+erstated b' &1,!!
c% Bnderstated b' & 3,!! d% =+erstated b' & ","!!
Solution 3an% 51,050.""
2nadjusted ba#ance =eturned chec%s ervice charge Co##ection of note receivab#e eposit in transit Outstanding chec%s 3oo% error $djusted ba#ance
5,-".50 9"",)"5.00: FFFFFFFFFFFF --,/./"
3oo% -,-./" 9 ,000.00: 9 1,000.00: ',000.00
9 -,)00.00: --,/./"
$djusting entr $ccounts receivab#e Cash
,000 ,000
ervice charge Cash
1,000
Cash Note receivab#e
',000
$ccounts receivab#e Cash $ns*er+ 1. $ ". C
1,000
',000 -,)00 -,)00 -.
. $
Problem 14
The cash boo4s of Frace Corporation sho# the follo#ing entries during the month of -une !!"% Cash /eceipts -ournal Chec4 /egister Date Amount Date Chec4 2o% Amount -une 1alance )",!!! -une 6!1 1*,"* Deposit 113,!!! 3 6! ),*" Deposit 611,!!! * 6!3 9,!* )Deposit 1*,!! ) 6! 1"9,*** 1! Deposit 11,3!! 6 6!* ),93" 1! Deposit 1,)!! 1! 6!" ),"!! 11 Deposit )3,!!! 11 6!) 3,6 1) Deposit 11!,!)* 13 6!6 *!,!!! 16 Deposit 3,)* 1 6!9 1,!)!,!!! 16 Deposit "*,!!! 1) 61! 1"),3!! 19 Deposit ","3 19 611 3,13! ! Deposit 133,!3) 1 61 6,)3! ) Deposit )3,"6 3 613 1),!! 3! Deposit 9,!! * 61 93,!6! 3! 61* )! The ban4 statement for the month of -une !!" sho#s$ Chec4s 2o% alance
Deposits 9,!!!
6!! 6! 20
3",!!! 1"9,***
Date 5a' 31 -une * " )
Amount )96,!!! 1,),!!! 1,"6",!!! 1,*1",*
6!* 6!1 6!3 6!) 9
),93" 1",** 9,!* 3,6 )*,!!! !! (collection charge. 6!9 1,!)!,!!! 6!6 *!,!!! 61! 61 6!"
1"),3!! 6,)3! ),"!!
611 D5
3,13! 3!!
1),!!
6
1,"*6,)!9
9),!!!
9 1
1,1,9)9 1,)*,13)
!,!! C5
13
1,!,33)
196,!!! C5 113,6!! 1*9,*!!
1 1* 1" 19 1 6
3)!,33) 1!,33) 316,33) ",63) 31,"!) "),!!) 3!,"3*
3!
33),!*
)3,"6
Bpon in+estigation, the follo#ing are disco+ered$ C5 7 /epresents a "!7da', " note for &!,!!! collected b' the ban4 for the account of Frace Compan'% C5 7 /epresents a "!7da', " o#n note for &!!,!!! discounted b' Frace Corporation #ith the ban4 and not 'et recorded in the boo4s% D5 7 /epresents ban4 ser+ice charge for the month% Chec4 2o% 9 represents a chec4 signed b' Fraciele Compan'% Collection charge represents collection fee charged b' the ban4% Questions 1% The unad:usted cash ledger balance of F/AC? C=/&=/AT<=2 at -une 3!, !!" is$ a% & 11,!)9 b% & 113,1)9 c% & 39,!)9 d% & 36,1)9 % The unad:usted cash ban4 balance of F/AC? C=/&=/AT<=2 at -une 3!, !!" is$ a% & "1,3!* b% & 33",3!* c% & 33),!*s d% & 1,!* 3% The deposit in transit of F/AC? C=/&=/AT<=2 at -une 3!, !!" is$ a% & 9,!! b% & 1!,*!! c% & 16,!!! d% & ! % The outstanding chec4s of F/AC? C=/&=/AT<=2 at -une 3!, !!" is$ a% & 3!,6!" b% & 6,*" c% & ),6!" d% & 1*3,*" *% The ad:usted cash balance of F/AC? C=/&=/AT<=2 at -une 3!, !!" is$ a% & )),6)9 b% & )",!)9 c% & "1,3!* d% & !1,!)9 "%
The error made in chec4 number 6!1 is 4no#n as$ a% 0undamental error c% Transplacement error b% alance sheet error d% Transposition error
)%
Solution
21
2nadjusted boo% ba#.
-,0/
9 00: 9 "00: 9 -00: 0,00 1',000 "/),0/
$djusting entr+ $ccounts paab#e 00 Cash Cash 0,"00 Co##ection fee "00 Notes receivab#e Interest income ervice charge -00 Cash Cash 1',000 Interest expense ",000 Notes paab#e $ns*er+ 1. C ).
2nadjusted ban% ba#. eposit in transit Outstanding chec%s+ B '0" B '1B '1 B '15
". C /. 3
--/,"05 ",00 /,5") 1"/,"00 -,0'0 /"0
9""',5"): /5,000 "/),0/
00
0,000 00 -00
"00,000
-. $
. 3
5. 3
Problem 15
The ban4 portion of the ban4 reconciliation for Angelo Compan' at =ctober 31, !!" #as as follo#s$ Angelo Compan' an4 /econciliation =ctober 31, !!" Cash alance per an4 & 1,3")%9! Add$ Deposit in transit 1,*3!%! & 13,696%1! @ess$ =utstanding chec4s Chec4 2umber *1 )! )1 ) )
Chec4 Amount & 1,"!%! )!%1! 6%*! "%6! 1,!*!%!!
Ad:usted cash balance per ban4
,3!1%6! & 9,*9"%3!
The ad:usted cash balance per ban4 agreed #ith the cash balance per boo4s at =ctober 31% The 2o+ember ban4 statement sho#ed the follo#ing chec4s and deposits% an4 Statement Chec4s Date 2umber 1171 117 117* 22
)! )1 )
Amount )!%1! 6%*! 1,!*!%!!
1171 117 1176
Deposits Date 1,*3!%! 1,11%"! 99!%1!
Amount
117 1176 1171! 1171* 11716 117) 1173! 1179
)* )" )) )9 6! 61 63 6" Total The cash records per boo4s
Date 1171 117 117 117 1176 1171! 1171* 11716
1,"!%)! ,63!%!! "!!%!! 1,)*!%!! 1,33!%!! "9*%! *)*%*! 9!!%!! 1,93"%! for 2o+ember
Cash &a'ments -ournal 2umber Amount Date )* 1,"!%)! 117! )" ,63!%!! 117 )) "!!%!! 1173 )6 *36%! 117 )9 1,*)!%!! 1179 6! 1,33!%!! 1173! 61 "9*%! Total 6 "1%!!
11713 11716 1171 117* 1176 1173! Total
,*)*%!! 1,)%)! ,9*%!! ,*")%3! 1,"*!%!! 1,16"%!! 1",1)%9!
sho#ed the follo#ing$
2umber 63 6 6* 6" 6) 66
Amount *)*%*! 69%*! 9)%6! 9!!%!! 396%!! 6!!%!! 1,9%1!
Cash /eceipts -ournalLLLL Date Amount 1173 1,11%"! 117) 99!%1! 1171 ,*)*%!! 1171) 1,)%)! 117! ,9*%!! 117 ,*")%3! 117) 1,"*!%!! 1179 1,16"%!! 1173! 1,*%!! Total 1*,631%)!
The ban4 statement contained t#o ban4 memoranda$ 1% A credit of &,1!*%!! for the collection of a &,!!! note for Angelo Compan' plus interest of &1! and less a collection fee of &1*% Angelo compan' has not accrued an' interest on the note% % A debit for the printing of additional compan' chec4s, &*!% At 2o+ember 3!, the cash balance per boo4s #as &11,13%9!, and the cash balance per the ban4 statement #as &1),"!%"!% The ban4 did not ma4e an' errors, but Angelo Compan' made t#o errors% 2ote$ The correction of an' errors pertaining to recording chec4s should be made to Accounts &a'able% The correction of an' errors relating to recording cash receipts should be made to Accounts /ecei+able Questions 1% The unad:usted cash ledger balance of A2F?@= C=5&A2 at 2o+ember 3!, !!" is$ a% & 11,133%9! b% & 1,99!%9! c% & 13,166%9! d% & 13,3))%9! % The unad:usted ban4 balance of A2F?@= C=5&A2 at 2o+ember 3!, !!" is$ a% & 1,66%9! b% & 13,!!6%9! c% & 13,166%9! d% & 1),"1%"! 3% The outstanding chec4s of A2F?@= C=5&A2 at 2o+ember 3!, !!" is$ a% & *,"*9%)! b% & *,63!%)! c% & *,639%)! d% & ",!6%)!
23
%
The deposit in transit of A2F?@= C=5&A2 at 2o+ember 3!, !!" is$ a% & 1,* b% & 1,1" c% & 1,3 d% & 1,39"
*% The ad:usted boo4 balance of A2F?@= C=5&A2 at 2o+ember 3!, !!" is$ a% & 11,133%9! b% & 1,99!%9! c% & 13,166%9! d% & 13,3))%9!
Solution
2nadjusted ban% ba#. eposit in transit Outstanding chec%s+ B"51 1,")0.0 B"/").'0 B"/' 5-'."0 B"'" )1".00 B"''".50 B"' /.'0 B"'' '00.00 $djusted ba#ance
1/,)1.)0 1,""5.00
9 5,'-./0 : 1",0.0
2nadjusted boo% ba#. C7 & notes co##ected 7 & service charge
11,1--.0 ",105.00 9 50.00: 9
.00:
9
1'0.00:
FFFFFFFFF 1",0.0
$djusted ba#ance
$djusting entr+ Cash ervice charge Notes receivab#e Interest income ervice charge Cash $ccounts receivab#e Cash $ccounts paab#e Cash
",105 15 ",000 1"0 50 50 1'0 1'0
$ns*er+ 1. $
-. C
".
. $
5. 3
Problem 16
The follo#ing information pertains to the cash of -enn' Compan'$
alance sho#n on ban4 statement alance sho#n in general ledger before reconciling the ban4 account =utstanding chec4s Deposits in transit
Deposits sho#n in ban4 statement Charges sho#n on ban4 statement Cash receipts sho#n in compan'’s boo4s Cash pa'ments sho#n in compan'’s boo4s
2o+ 31 & ),36!
Dec% 31 & ",9"!
*,)6! 6,"3! ",6*!
*,!!! 1!,1*! 1,*!
0or Dec% & **,66! *",3!! *3,96! *,)"!
The ban4 ser+ice charge #as &16! in 2o+ember (recorded b' the compan' during December. and &! in December (not 'et recorded b' the compan'.%
24
% The ad:usted December 31 cash balance of -?22 C=5&A2 is$ a% & 9,)"! b% & 9,"! c% & ),"!
d% & *,"!!
*% The ad:usted 2o+ember 31 cash balance of -?22 C=5&A2 is$ a% & 9,1"! b% & ),"! c% & ",1"!
d% & *,"!!
"% The chec4 issued but #as incorrectl' recorded as &6,9"! should be ad:usted b'$ a% Accounts pa'able ,!!! c% Cash ,!!! Cash ,!!! Accounts pa'able ,!!! b% ?;uipment ,!!! d% Cash ,!!! Cash ,!!! ?;uipment ,!!! Solution 3a#ance per boo% ervice charge & Nov. -0 ! ec. -1 N> chec% Interest earned 3oo% error $djusted 3a#ance
3a#ance per ban% Outstanding chec% & Nov. ! ec. eposit in transit ! Nov ! ec
Nov. -0 "5,/'0 91'0:
FFFFFFFFFF "5,)00
=eceipts 5-,'0
/,500 FFFFFFFFF )1,'0
Nov. -0 "/,-'0 9',)-0:
=eceipts 55,''0
),'50 FFFFFFFFFF
9),'50: 1",50
isburs. 5,/)0 91'0: "0 5,000 9",000: 5/,'"0
ec. -1 "5,000 9"0: 95,000: /,500 ",000 ",")0
isburs. 5),-00 9',)-0: 10,150
ec. -1 "),)0
FFFFFFFFF
1",50
910,150:
25
$djusted ba#ance
"5,)00
)1,'0
5/,'"0
",")0
$djusting entr ervice charge Cash
"0 "0
$ccounts receivab#e Cash
5,000
Cash Interest income
/,500
Cash <(uipment $ns*er+ 1. $
5,000
/,500 ",000 ",000
". C
-. C
. 3
5.
).
Problem 17
?@?0A2T?’s chec4 register sho#s the follo#ing entries for the month of December Date !!" Dec
Chec4s 1 * ) 11 " 9
Deposits
eginning alance Deposit Chec4 8 13 3,*!! Chec4 8 13* 1,!!! Deposit Chec4 813" 6,"!!
alance & 63,9!!
& "*,!!! 1!,6!! 1!",6!! 9,!!! 1),!!
?@?0A2T?’s ban4 reconciliation for 2o+ember re+ealed one outstanding chec4 (2o%133. for &1,!!! (#ritten on 2o+ember 6., and one deposit in transit for &*,**! (made 2o+ember 9.% The follo#ing is from ?lefante’s ban4 statement for December !!"$ Date !!" Dec%
Chec4s 1 1 * 1 1* ! 9 31
eginning balance Deposit Chec4 2o% 13 Deposit Chec4 2o% 13* @oan &roceeds 2S0 chec4 Ser+ice charge
Deposits
&
*,**!
& 3,*!! *",!!! 1,!!! *!!,!!! ),"!! 1,!!! 3,"!!
alance & 9*,9)! 1!1,3!! "6,6!! 1,6!! 11!,6!! "1!,6!! "!3,!! "!,!! "!*,6!!
2ote$ All errors noted in this problem #ere committed b' the ?lefante, not the ban4%
% The unad:usted cash receipts per ban4 of ?@?0A2T? C=5&A2 for the month of December is$ a% & *),1*! b% & *"6,"!! c% & *"*,1*! d% & **9,"!! 3%
The ad:usted December 1 cash ledger balance of ?@?0A2T? C=5&A2 is$ a% & 9*,9)! b% & 69,*!
c% & 63,9!!
d% & )6,6!
% The ad:usted December31 cash ban4 balance of ?@?0A2T? C=5&A2 is$ a% & "3,! b% & "6,6!! c% & "3,16! d% & *)),"! *% The o+erstatement of deposit should be$ a% Deducted in the ban4 December 31 column% b% Added in the ban4 December 31 column% c% Deducted in the boo4 December 31 column% d% Added in the boo4 December 31 column% Solution
ec. 1 5,/0 5,550
3an% ba#ance eposit in transit & ec. 1 ! ec. -1 Outstanding chec%s ec. 1 ! B1-ec. -1 ! B1-- & 41",000 B1-) ! ',)00 $djusted ba#ance
=eceipts 5)5,150 95,550: ,000
91",000:
3oo% ba#ance Overstatement of deposit 8oan proceeds Interest income N> ervice charge ota# 2nrecorded co##ection $djusted ba#ance
isburs. 55,100
ec. -1 )0),0"0 ,000
91",000:
FFFFFFFFFF ',5"0
FFFFFFFF )0',00
"0,)00 )-,/00
9"0,)00: )-,"0
ec. 1 '-,00
=eceipts 11,000 9,000: 500,000 -,)00
isburs. 55,100
FFFFFFFFFF '-,00 5,)"0 ',5"0
FFFFFFFF )0',)00 FFFFFFFF )0',00
ec. -1 1",'00 9,000: 500,000 -,)00 9/,)00: 91,000: )"','00 5,)"0 )-,"0
/,)00 1,000 )-,/00 FFFFFFFFF )-,/00
$djusting entr $ccounts receivab#e Cash
,000 ,000
Cash Notes paab#e
500,000 500,000
Cash Interest income
-,)00
$ccounts receivab#e Cash
/,)00
ervice charge Cash $ns*er+ 1. 3
1,000
-,)00
/,)00
1,000 ". C
-. 3
. $
5. C
Problem 18
27
-uliet Compan' maintains a chec4ing account at the Da+ao an4% At -ul' 31, selected data from the ledger balance and the ban4 statement are as follo#s$ Cash in an4 &er oo4s &er an4 alance, -ul' 1 -ul' /eceipts -ul' Credits -ul' Disbursement -ul' Debits
& 1),"!! 6,!!!
& 19,!! 6!,!)!
)",9!! % & ,)!!
),)! & ,*3!
Anal'sis of the ban4 data re+eals that the credits consist of &)6,!!! of -ul' deposits and a credit memorandum of &,!)! for collection of a &,!!! note plus interest re+enue of &)!% The -ul' debits per ban4 consist of chec4s cleared, &),)!! and a debit memorandum of &! for printing additional compan' chec4s% ou also disco+er the follo#ing errors in+ol+ing -ul' chec4s$ (1. a chec4 for &3! to a creditor on account that cleared the ban4 in -ul' #as :ournaliIed and posted as &3!, and (. a salar' chec4 to an emplo'ee for &** #as recorded b' the ban4 for &1**% The -une 3! ban4 reconciliation contained onl' t#o reconciling items$ deposits in transit, &1,!!! and outstanding chec4s, &,"!!% Assume that the interest on the note has been accrued% Questions 1% The deposit in transit of -B@
d% & ,*!
The ad:usted cash ledger balance of -B@
% The ad:usted cash ban4 balance of -B@
3oo% ba#ance C7 & co##ection 7 & service charge
28
"",/00 ",0/0 9 0: 0 ",'"0 1,000 '",000 /',000 5,000
3an% ba#ance
",5-0 9
100: 5,000 9,)10: ",'"0 ",)00 /','10 /,'00 ,)10
$djusting entr+ Cash
",0/0
Notes receivab#e Interest income ervice charge Cash Cash $ccounts paab#e $ns*er+ 1. $
". C
",000 /0 0 0 0 0
-. 3
. 3
Problem 19
ou are as4ed to audit the cash of @ett' Corporation% @ett' Corporation carries its chec4ing account #ith 5indanao an4% The follo#ing data are a+ailable$ a% @ett' Compan' Cash account for December$ alance, 2o+ember 3! Deposits during December Chec4s #ritten during December alance, December 31
& !,9!! 93,!! ( 63,!!!. & 3,3!!
b% an4 statement for December$ alance, 2o+ember 3! Deposits during December Chec4s cleared during December 0unds transferred from foreign operations re+enue (in peso amount not 'et recorded b' @ett' Corp%. 2S0 chec4, Customer 2ell' an4 Ser+ice charge alance, December 31
& !,!!! 9,3!! ( 6,1*!. *,!!! ( 16!. ( )!. & *,9!!
c% Additional data$ 1% alance in &ett' Cash account, &!! (not included in @ett' Cash account.% % The deposits of &93,!! b' @ett' Compan' are o+erstated b' &1!! the ban4 recorded the correct amount% 3% The chec4s cleared b' the ban4 of &6,1*! erroneousl' included a &3!! chec4 dra#n b' @ait' Corporation the ban4 has not 'et corrected this error% % 2o+ember 3!$ deposits outstanding, &,!!! and chec4s outstanding, &1,*!!% Questions 1% The deposit in transit of @?TT C=5&A2 at December 31 is$ a% & 3,1!! b% & 3,!!! c% & ,9!!
d% & ,!!!
% The outstanding chec4s of @?TT C=5&A2 at December 31 is$ a% & 1,"*! b% & 1,*!! c% & ,!*!
d% & ,3*!
3%
The ad:usted cash balance of @?TT C=5&A2 at December 31 is$ a% & *",!*! b% & **,9*! c% & **,"*! d% & **,**! 29
% The cash shortage of @?TT C=5&A2 at December 31 is$ a% & ! b% & !! c% & *!!
d% & "!!
Solution
3oo% ba#ance C7 7 N>
-1,-00 "5,000 9 /0: 9 1'0: 9 100: 55,50 9 00: 55,550
I & beg H 3oo% receipts ! 3an% deposits I & end
",000 -,-00 ",-00 -,000
3an% ba#ance
OC & beg H 3oo% disbursement ! 3an% disbursement OC & end
5,00 -00 -,000 9",)50: FFFFFF 55,550 FFFFFF 55,550 1,500 '-,000 '1,'50 ",)50
$djusting entr+ Cash
"5,000
Cash & foreign ban% ervice charge Cash $ccounts receivab#e Cash $ccounts receivab#e Cash ue to custodian Cash $ns*er+ 1. 3
". $
"5,000 /0 /0 1'0 1'0 100 100 00 00
-.
. 3
Problem 20
&1,3*!,!!! 1,!!,!!!
"*,!!! )*,!!! *,!!! 6*,!!!
Additional information$ The stub for chec4 number !!!*61 and the in+oice relating thereto sho# that it #as for &3*,!!! but #as incorrectl' recorded as &**,!!!% This #as in pa'ment of the accounts pa'able% 30
&a'ment has been stopped on chec4 number !!!*") #hich #as dra#n in pa'ment of accounts pa'able% The pa'ee cannot be located%
% Cancellation of chec4 number *") should be recorded as$ a% Debit to Accounts &a'able c% Credit to Accounts &a'able b% Credit to Cash d% 2o ad:ustment>entr' 3%
Cash shortage of C@??2?TH C=5&A2 at December 31, !!" is$ a% & ! b% & *!,!!! c% & !,!!! d% & 1!,!!!
% The ad:usted cash balance of C@??2?TH C=5&A2 at December 31, !!" is$ a% & 1,9!,!!! b% & 1,!,!!! c% & 1,1!,!!! d% & 1,16!,!!! Solution 3a#ance per boo% ervice charge N> chec% Overstatement of disburs chec% B 5'1 Cance##ation of chec% B 5)/ ota# 2nrecorded disburs. D $djusted ba#ance 3a#ance per ban% Outstanding chec%s eposit in transit Overstatement of disburs chec% B 5'1 Cance##ation of chec% B 5)/ $djusted ba#ance D s(ueeEe figure $ns*er+ 1. 3
". C
1,-50,000 9 5,000: 9 '5,000: "0,000 10,000 1,"0,000 9 50,000: 1,"0,000 1,"00,000 9 ")5,000: "/5,000
$ccounts paab#e Cash ervice charge Cash
50,000 50,000 5,000 5,000
$ccounts receivab#e Cash
'5,000
Cash $ccounts paab#e
"0,000
Cash $ccounts paab#e
10,000
'5,000
"0,000
10,000
"0,000 10,000 1,"0,000
-. $
. 3
Problem 21
Dema7ala Compan' is +er' profitable small business%
for &9!)%!, 2o% 6" for &""1%1%
& 6),*)!%66
1,931%1" & 69,*!%! 1*,16%! & ),3!%!! 6!!%!! & )3,*!%!!
@ess$ Bndeposited receipts Bnad:usted balance per ban4, =ctober 31 @ess$ an4 credit memorandum Cash balance per ban4 statement, =ctober 31 Questions 1% D?5A7A@A C=5&A2’S cash shortage at =ctober 31 is$ a% & ,1! b% & 3,1! c% & 1,"!!
d% & 6!!
% D?5A7A@A C=5&A2’S ad:usted cash balance at =ctober 31 is$ a% & 66,3)!%66 b% & 6),*)!%66 c% & 6",))!%66
d% & 6,1"!%66
Solution
3oo% '/,5/0.'' '00.00
2nadjusted ba#ance Co##ection of note Outstanding chec%s B )" 4 50/.00 B1')00.00 B"' 1,10-.00 B')" /)".' B')0/."0 B') ))1.1" eposit in transit ota# Cash shortage $djusted cash ba#ance
9 FFFFFFFFF '',-/0.'' 9,"10.00 : ',1)0.''
$djusting entr+ '00 Notes receivab#e ue to custodian ,"10 Cash
Cash
$ns*er+ 1. $
Problem 22
32
".
3an% /-,5"0.00
'00 ,"10
,51.1): 15,1'".0 ',1)0.'' FFFFFFFF ',1)0.''
=n December 1* of the current 'ear, Dar#in, #ho o#ns Herald Corporation, as4s 'ou to in+estigate the cash7handling acti+ities in his firm% He thin4s that an emplo'ee might be stealing funds% “< ha+e no proof” he sa', “but <’m fairl' certain that the 2o+ember 3! undeposited receipts amounted to more than &",!!! although the 2o+ember 3! ban4 reconciliation prepared b' the cashier sho#s onl' &3,"19%!% Also, the 2o+ember ban4 reconciliation doesn’t sho# se+eral chec4s that ha+e been outstanding for a long time% The cashier told me that these chec4s needn’t appear on the reconciliation because he has notified the ban4 to stop pa'ment on them and he had made the necessar' pa'ment on the boo4s%
At 'our re;uest, Dar#in sho#ed 'ou the follo#ing 2o+ember 3! ban4 reconciliation prepared b' the cashier% al% &er ban4 statement Deposit in transit =utstanding chec4s 8 3*1 **!%1! 3*3 69%1" 3* 6%6 $djusted 3a#ance
&
,3"!%1 3,"19%!
( 1,%1!. 4 ,/55.""
al% &er oo4s & an4 Ser+ice charge ( Bnrecorded ban4 C5 (
*,36*% 3!%!!. "!!%!!.
$djusted 3a#ance
LLLLLLLL ,/55.""
4
ou disco+er that the &"!! unrecorded ban4 credit represents a note collected b' the ban4 on Dar#in’s behalf%
c% & 1,6!
d% & *6!
% The total outstanding chec4s of H?/A@D C=/&=/AT<=2 at 2o+ember 3! is$ a% & ,*%1! b% & 1,66%1! c% & 1,6"%1! d% &1,%1! 3%
The ad:usted cash balance of H?/A@D C=/&=/AT<=2 at 2o+ember 3! is$ a% & *,9**% b% & *,3**% c% & ,11*% d% & 3,**%
Solution
33
3oo% ba#ance C7 ervice charge ta##ed chec%s B1-" -00.00 B15' "--.5 B151" 1").55 ota# Cash shortage $djusted ba#ance
5,-'5."" )00.00 9 -0.00:
3an% ba#ance eposit in transit Outstanding chec%s B"-51 550.10 B"-5'".1) B"-5 '.'
",-)0.1" -,)1."0
91,').10: FFFFFFFF ota# ,115."" FFFFFFFF $djusted ba#ance ,115.""
))0.00 ),)15."" 9",500.00 : ,115.""
$djusting entr+ Cash
)00
Notes receivab#e ervice charge Cash
)00 -0 -0
Cash
))0 $ccounts paab#e ))0 ue to custodian ",500 Cash ",500 $ns*er+ 1. 3
". C
-. C
Problem 23
The ban4 statement for the account of A/2=@D C=5&A2 at December 31, !!" sho#ed a credit balance of &!,!!!, #hile the compan'’s ledger balance of the cash account as of 2o+ember 3!, !!" #as a debit of &!,!!!% During December, !!", the ledger sho#ed t#o postings, a debit of &"!,!!! and a credit of &39,!!! from the Cash /eceipts and Chec4 Disbursements -ournal, respecti+el'% our eEamination re+ealed that the cash column of the receipts boo4 #as underfooted b' &",!!% The receipts boo4 recorded onl' the collections from customers and did not include a ban4 credit in December for &6,!!!, representing loan proceeds of a &1!,!!! promissor' note% An eEamination of the customers’ subsidiar' ledgers sho#ed total credits to indi+idual accounts amounting to &)!,!!% The December Chec4 Disbursements -ournal #hich #as o+erfooted b' &*!!, records onl' the chec4s issued b' the compan'%
34
& *,!! 1,6!! ,9!! 1,!!
1% The deposit in transit of A/2=@D C=5&A2 at December 31, !!" is$ a% & ",3!! b% & ),)!! c% & 6,1!! d% & 11,3!! % The cash shortage of A/2=@D C=5&A2 at December 31, !!" is$ a% & *,!! b% & *!,!! c% & ",!! d% & 3",!! 3%
The maEimum probable cash shortage of A/2=@D C=5&A2 at December 31, !!" based on the records is$ a% & *,!! b% & *!,!! c% & ",!! d% & 3",!!
% The ad:usted cash balance of A/2=D@ C=5&A2 at December 31, !!" is$ a% & 19,*!! b% & 1,3!! c% & !,9!! d% & ,*!!
Solution
2nadjusted ba#ance 2nderstatement of receipts C7 Overstatement of disbursements 7 & service charge 7 & service charge not recorded in the boo% and erroneous# recorded b the ban% Outstanding chec%s eposit in transit 95,"00 H ",00 & 1,'00: ota# Cash shortage $djusted cash ba#ance $ns*er++ 1. $
". 3
-. $
3oo% )1,000 ),00 ',000 500 95,000:
3an% "0,000
91,"00:
91,"00: 95,)00:
FFFFFF ),/00 950,"00 : 1,500
),-00 1,500 FFFFFF 1,500
Cash shortage 50,"00 ! 3an% =econ Cash shortage & $= #edger !$= subsidiar #edger credit posting /0,00 ! Cash debit postings D )),00 ,000 7aximum hortage 5,"00 D Cash debit posting unrecorded co##ection
)0,000 ),00 )),00
. $
Problem 24
The &A5A C=/&=/AT<=2 engaged 'our ser+ices to audit its account%
6% an4 ser+ice charges for -une, &1!!% The compan' cashier presented to 'ou the follo#ing reconciliation statement for -une, !!" #hich he has prepared$ alance per boo4s, -une 3!, !!" Add$ outstanding chec4s$ 2o% !* * 6! 3! 31) Total an4 charges Bndeposited collections alance per ban4, -une 3!, !!" Questions
&",*!! & "!! !! *!! )!! 1,*!!
3,"!! &9,!! (1!!. ( *,1!!. &,!!!
1% The outstanding chec4s of &A5A C=/&=/AT<=2 at -une 3!, !!" is$ a% & 3,"!! b% & 3,)!! c% & *,)!! d% & 11,*!! % The cash shortage of &A5A C=/&=/AT<=2 at -une 3!, !!" is$ a% & ),6!! b% & 11,!! c% & 1,6!!
d% & 19,!!
3% The cash shortage of &A5A C=/&=/AT<=2 from -ul' 1 to -ul' 1*, !!" is$ a% & 6,!!! b% & ),6!! c% & 3,!!! d% & ,6!! %
The total cash shortage of &A5A C=/&=/AT<=2 up to -ul' 1*, !!" is$ a% & 1,!! b% & 1*,"!! c% & 1*,6!! d% & 19,!!
*% The ad:usted cash balance of &A5A C=/&=/AT<=2 at -une 3!, !!" is$ a% & 3*,9!! b% & 39,"!! c% & 3,6!! d% & ,9!! Solution
3oo% ),500
2nadjusted ba#ance Outstanding chec%s eposit in transit C7 ervice charge ota# Cash shortage $djusted cash ba#ance
3an% ",00 9 11,500: 5,000
00 9 100 : /,-00 911,00 : -5,00
FFFFFF -5,00 FFFFFF -),00
Cash shortage from ?u# 1 to ?u# 15 Co##ection per records eposit in transit & ?une -0 Cash that shou#d be deposited eposited co##ection 2ndeposited co##ection Cash on hand & ?u# 15 Cash shortage & ?u# 1 to ?u# 15 $NA<=+ 1.
36
". 3
1','00 5,000 "-,'00 11,000 1",'00 ,'00 ',000
-. $
.
5. $
Problem 25
&er an4 Statement &er oo4s Bndeposited collections =utstanding chec4s
M Composed of the follo#ing
December 1, !!" & *,!!! *!,!! 3,3!! ",9!! M
8"*1* "*1) "*16 "*19
(b. Totals for the month of December, !!"$ Cash oo4$ /eceipts Disbursement an4 Statement /eceipts Disbursement
*1! ,*! ,!! 1,)!
December 31, !!" &1!1,1!! )!,1* ),!! 1,!!! M
8"** & 1,6!! "**3 *,)!! "** ,**! "*** 1,9*!
& *,**! !*,)3* & ,* 39),1*
After application of the necessar' auditing procedures, the follo#ing #ere noted$ a% 0ooting of disbursement should be & !,3*, instead of & !*,)3*% b% an4 ser+ice charge of &1* for December has not been boo4ed% c% Cancelled chec4s (returned together #ith the December ban4 statement. include the follo#ing #hich #ere charged in the statement$ 1% Chec4 8"*3! dated December 1*, !!" for &,!! 7 this #as issued as replacement of chec4 8 "*16 #hich #as returned b' the pa'ee because of certain erasures% 2o entr' has been made to record the cancellation of chec4 8"*16% % Chec4 8"*1) for &* 7 this #as erroneousl' recorded on the boo4s as &,*!% 3% Chec4 of 2eil Trading for &9!! 7 this #as charged b' ban4 in error% d% &roceeds from sale of stoc4s amounting to &3,*! (cost is &16,!!!. transmitted directl' b' the bro4er to the ban4 and credited on December 31, !!"% 2o entr' has been made on the boo4s to record this sale of stoc4 in+estment% e% The compan' failed to record disbursement for pa'ment of accounts pa'able at December 31, !!" for &1,*!!% Questions 1% The ad:usted cash receipts per ledger of 2?@S=2 T/AD<2F C=5&A2 at December 31, !!" is$
37
a% & 6,6!!
b% & 6,1*
c% & ,*
d% & *,**!
% The ad:usted cash disbursement per ban4 of 2?@S=2 T/AD<2F C=5&A2 at December 31, !!" is$ a% & !1,3* b% & !,!!! c% & !*,)3* d% & !",1* 3%
The ad:usted cash ledger balance of 2?@S=2 T/AD<2F C=5&A2 at December 31, !!" is$ a% & 91,3*! b% & 9*,!! c% & 9),!! d% & 9),*!!
% The ad:usted cash in ban4 balance of 2?@S=2 T/AD<2F C=5&A2 at December 31, !!" is$ a% & 91,3*! b% & 9*,!! c% & 9),!! d% & 9),*!! *% The cash shortage of 2?@S=2 T/AD<2F C=5&A2 at December 31, !!" is$ a% & )"* b% & ")* c% & *)* d% & 39! Solution ec. 1 50,00
3a#ance per boo% Overfooting of disburse. ervice charge Cance##ation of chec% B )51' Overstatement of disbursement 4roceeds from sa#e of stoc% 2nrecorded disbursement 3a#ance Cash shortage $djusted ba#ance
FFFFFFFFF 50,00 FFFFFFFFF 50,00 ec. 1 5,000
3a#ance per ban% eposit in transit ec. 1 ec. -1 Outstanding chec%s ec. 1 ec. -1
-,-00
FFFFFFFFF 50,00
ervice charge Cash Cash
38
)/5
15 15
",0"5 $ccounts paab#e ","05
$ccounts paab#e Cash Cash
)/5
1,500
1,500 $ccounts paab#e
1,500
1,500
isburse. 05,/-5 9 1,500: 15
",00
9 ",0"5:
",0"5
1,500 01,-"5 FFFFFFFFF 01,-"5
=eceipts ,""5
isburse. -/,1"5
9
-,-00: /,"00
FFFFFFFFF ',1"5
ec. -1 /0,"15 1,500 9 15:
9 ",00:
"-,"50 FFFFFFFFF ','00 9 )/5: ',1"5
9 ),00:
$djusting entr+ ue to custodian Cash
=eceipts "5,550
"-,"50 9 1,500: /,'/5 9 )/5: /,"00 ec. -1 101,100
/,"00 9 ),00: 1",000 9 00: 01,-"5
9 1",000: 00 /,"00
