Problem on Loan Impairment On January 1, 2007, Melon Corp. loaned P 3,000,000 to Debtor Company.

Under the loan agreement, Debtor Company i to ma!e an annual prin"ipal payment o# P $00,000 #or % year plu intere t at &'. (he #ir t prin"ipal and intere t payment i due Jan. 1, 200&. (he re)uired payment *ere made by Debtor Company #or 200& and 200+. ,o*e-er, during 200+, Debtor Company began to #a"e #inan"ial di##i"ultie , re)uiring Melon Corp to re.e-aluate the "olle"tibility o# the loan. On De". 31, 200+, Melon Corp determine that it *ill be able to "olle"t the remaining prin"ipal, but it i unli!ely that the intere t *ill be "olle"ted. (he ## pre ent -alue #a"tor are ta!en #rom the table o# pre ent -alue / Pre ent -alue o# 1 at &' #or/ 1 period .+2%+3 2 period .&%730 3 period .7+3&3 11 2hat i the pre ent -alue o# the #uture "a h#lo* a o# De". 31, 200+3 21 2hat i the amount o# loan impairment on De". 31, 200+3 31 4 uming that Melon Corp. a e ment o# the "olle"tibility o# the loan ha not "hanged, *hat i the amount o# intere t re-enue that hould be re"ogni5ed #or 20103 6O7U(8O9/ 1. Pre ent -alue o# e:pe"ted #uture "a h #lo* / Jan. 1, 2010 $00,000 Jan. 1, 2011 ;$00,000 : .+2%+31 %%%,%%& Jan. 1, 2012 ;$00,000 : .&%7301 %10,000 (otal 2. Carrying -alue o# loan, De". 31,0+ ;$00,000 : 31 7e Pre ent -alue o# #uture "a h #lo* 7oan impairment 3. Pre ent -alue o# e:pe"ted #uture "a h #lo* 7e "olle"tion o# loan payment, 1<1<10 1,$$+,+$2 1,&00,000 1,$$+,+$2 130,03& 1,$$+,+$2 $00,000

Carrying -alue, Jan. 1<10 = intere t rate 8ntere t re-enue #or 2010 >ntrie / 200+ 7oan impairment lo 4llo*an"e #or loan impairment 2010 Jan 1 Ca h 7oan re"ei-able De" 31 4llo*an"e #or loan impairment 8ntere t re-enue INTERNAL CONTROL MEASURES CASH

1,0$+,+$2 &' &%,%+7

130,03& 130,03& $00,000 $00,000 &%,%+7 &%,%+7

11 Ca h re"eipt hould be depo ited inta"t ? that i , in the ame amount and #orm a they are re"ei-ed. 21 4ll di bur ement hould be authori5ed and made by "he"! e:"ept tho e in-ol-ing mall amount *hi"h hould be paid #rom the petty "a h. 31 @oth re"eipt and di bur ement hould be properly a""ounted #or in the re"ord . 01 (here hould be eparation o# per onnel dutie #or/ a1 re"ei-ing "a h b1 re"ording re"eipt "1 depo iting "a h "olle"tion d1 re"on"iling ban! a""ount e1 authori5ing di bur ement #1 di bur ing "a h %1 $1 71 &1 @an! re"on"iliation tatement hould be prepared monthly. Pro-ide phy i"al prote"tion #or "a h. Minimi5e "a h on hand in the o##i"e. Ca h a"tually pre ent in the o##i"e ? petty "a h, "hange #und and undepo ited re"eipt "an be periodi"ally "ounted and "ompared *ith the "ompany re"ord . +1 4dopt impre t #und y tem #or petty "a h. SUBSTANTIVE AUDIT OF CASH

A ertion 1. >:i ten"e or O""urren"e

A!"it Pro#e"!re A Obtain analy i o# "a h and tra"e to B7 A Con#irm ban! balan"e a o# @6 date A Per#orm "a h "ount o# undepo ited "olle"tion , petty "a h and other #und A Obtain ;prepare1 ban! re"on a o# @6 date A (ra"e all tran #er o""urring near yearend. A Obtain "uto## ban! tatement "ontaining tran a"tion e-eral day ub e)uent to @6 date. A Prepare proo# o# "a h and re"on"ile "a h tran a"tion o""urring during a pe"i#ied period a they are re"orded by the ban! and "lient. A!"it Pro#e"!re A Ce-ie* the ban! tatement and the ban! replie to "on#irmation letter A Deri#y e:i ten"e o# "a h in ban! under re"ei-er hip, "a h ubEe"t to "ourtF re training order and in #oreign "urren"y. A 8n-e tigate any "he"! repre enting large or unu ual payment to related partie . A >-aluate proper #inan"ial tatement and di "lo ure o# "a h.

2. Completene

A ertion 3. Cight and Obligation 0. Daluation or 4llo"ation %. Pre entation G di "lo ure

AUDIT OF CASH an" CASH E$UIVALENTS Problem % Ca & an" Ca & E'!i(alent on t&e Statement o) Finan#ial Po ition Hour audit o# the De"ember 31, 2010 #inan"ial tatement o# Dioni io Corp. re-eal the #ollo*ing/ Current a""ount at Prime @an! P ;30,0001 Current a""ount at Prudent @an! 13%,000 (rea ury bill ;a")uired 3 month be#ore maturity1 300,000 (rea ury bill ;maturity date i De". 31, 20111 1,%00,000 Payroll a""ount 3+0,000 Ioreign ban! a""ount ? re tri"ted ;tran lated u ing the De". 31, 2010 e:"hange rate1 2,000,000 Po tage tamp 1,2%0 >mployeeF po tdated "he"! 0,%00

8OU #rom -i"e.pre ident Credit memo #rom a upplier #or a pur"ha e return (ra-elerF "he"! Money order Petty "a h #und ;P 3,000 in "urren"y and e:pen e re"eipt #or P 12,0001

&,000 &,100 21,000 12,+00 1%,000

2hat amount *ould be reported a J"a h and "a h e)ui-alent K on the tatement o# #inan"ial po ition on De". 31, 20103 a1 P &00,0%0 "1 P &0+,000 b1 P &73,+00 d1 P &$1,+00 Problem % Sol!tion Current a""ount at Prudent @an! P 13%,000 (rea ury bill ;a")uired 3 mth be#ore maturity1 300,000 Payroll a""ount 3+0,000 (ra-ellerF "he"! 21,000 Money order 12,+00 Petty "a h #und 3,000 (otal "a h and "a h e)ui-alent Problem * Pett+ Ca & F!n" (he auditor o# 6amantha, 8n". e:amined the petty "a h #und immediately a#ter the "lo e o# bu ine , July 31, 2010, the end o# the "ompanyF natural bu ine year. (he petty "a h "u todian pre ented the #ollo*ing/ Curren"y P 1,$%0 Petty "a h -ou"her / Po tage 020 O##i"e upplie e:pen e +00 (ran portation e:pen e 300 Computer repair &00 4d-an"e to o##i"e ta## 1,%00 4 "he"! dra*n by 6amatha,8n". payable to the petty "a h "u todian 7,200 Po tage tamp 300 4n employeeF "he"!, returned by @an!, mar!ed 96I 1,000 4n en-elope "ontaining the "urren"y o# P 1,&+0 #or a gi#t #or a retiring employee 1,&+0 (he general ledger ho* an impre t petty "a h #und balan"e o# P 1$,000 P &$1,+00

11 ,o* mu"h i the petty "a h hortage or o-erage3 a1 P2,1+0 o-erage "1 P 1,&+0 o-erage b1 P2,1+0 hortage d1 P 1,&+0 hortage 21 2hat i the adEu ted balan"e o# the petty "a h #und at July 31, 20103 a1 P 10,700 "1 P 7,200 b1 P 3,%00 d1 P &,&%0 Problem * Sol!tion, 1. Curren"y Petty "a h -ou"her ;020 L +00 L 300 L &00 L 1%001 Cepleni hment "he"! >mployeeF 96I "he"! Petty "a h a""ounted Petty "a h #und per ledger ;"u todianF a""ountability1 Petty "a h hortage P 1,$%0 3,+$0 7,200 1,000 P 13,&10 1$,000 P 2,1+0

Problem 3 ? Count o# Petty Ca h and Undepo ited Colle"tion 8n "onne"tion *ith your audit o# the #inan"ial tatement o# @enEamin Corp. #or the year ended De". 31, 2010, you "ondu"ted a urpri e "ount o# the "ompanyF petty "a h #und and undepo ited "olle"tion at &/20 am on Jan. 3, 2011. Hour "ount di "lo ed the #ollo*ing/ @ill and "oin @ill P 100 % pie"e Coin %.00 1& pie"e %0 00 pie"e 1.00 20$ pie"e 20 0& pie"e 0.2% 32 pie"e Po tage tamp ;unu ed1 ? P 3$% C&e#Date Payee Ma!er 4mount De" 30 Ca h Cu todian P 1,200 De" 30 @enEamin Corp 67D,8n". 10,000 De" 31 @enEamin Corp Mario 7an ang, ale manager 1,$&0 De" 31 @enEamin Corp M6U Corp. 17,&00 De". 31 @enEamin Corp 4teneo, 8n". &,300 De" 31 (ai*an Corp ;not endor ed1 @enEamin Corp 27,000 Unreimb!r e" (o!#&er

Date De" 23 De" 2& De" 2+ De" 2+

Payee Mario 7an ang Central Po t O##i"e Me enger @yte, 8n".

De "ription 4d-an"e #or o##i"ial trip Po tage tamp (ran portation Computer repair

4mount P 20,000 1,$20 1%0 &00

Other item #ound in ide the "a h bo:/ 11 Un"laimed pay en-elope o#Juan Ma"Donut. 8ndi"ated on the pay lip i hi net alary o# P 7,%00. Hour in)uiry re-ealed that JuanF alary i mingled *ith the petty "a h #und. 21 (he ale managerF li)uidation report #or hi (agaytay City trip. Ca h ad-an"e re"ei-ed on De". 23 P 20,000 7e / ,otel a""ommodation, meal ,et" P 1$,000 @u #are #or t*o 1,200 Ca h gi-en to Pablo, ale man 1,000 1&,200 @alan"e P 1,&00 4""ounted #or a #ollo* / Ca h returned by Pablo to the ale manager Per onal "he"! o# the ale manager (otal P 120 1,$&0 P 1,&00

4dditional in#ormation/ 11 (he "u todian i not authori5ed to "a h "he"! . 21 (he la t o##i"ial re"eipt in"luded in the depo it on De". 30 i 9o. 03%1 and the la t o##i"ial re"eipt i ued #or the "urrent year i 9o. 033%. (he #ollo*ing o##i"ial re"eipt are all dated De". 31, 2010. OC 9o. 4mount Iorm o# Payment 03%2 P 13,$00 Ca h 03%3 17,&00 Che"! 03%0 3,$00 Ca h 03%% &,300 Che"! 31 (he petty "a h balan"e per general ledger i P 2%,000. (he la t repleni hment o# the #und *a made on De". 22, 2010. 4 !ed/ 11 2hat i the amount o# the "a h hortage3 21 2hat i the amount o# undepo ited "olle"tion on De". 31, 20103 31 (he adEu ting entrie on De". 31, 2010 hould in"lude a net debit to (ra-el e:pen e o# MMMMMMMM. 01 2hat i the total unreimbur ed -ou"her on Jan. 3, 2011 ;"ount date13 %1 2hat i the total "a h hortage3

Problem . / Sol!tion 11 Ca h ad-an"e P 20,000 7e / 4"tual "a h di bur ed ,otel, meal , et". P 1$,000 @u #are 1,200 Pablo ;P1,000 ? P 1201 &&0 1&,0&0 Ca h that hould be returned P 1,+20 Ca h a"tually returned 1,$&0 6hortage due #rom the ale manager P 200 21 Colle"tion per OC 9o . 03%2.03%% Unre"eipted "olle"tion (otal undepo ited "olle"tion 31 (ra-el e:pen e ; 1$,000 L 1,200 L &&01 01 Unreimbur ed -ou"her ; 20,000 L 1,$20 L 1%0 L &001 @enEamin Corp. Ca h Count 6heet Jan. 3, 2011 ? &/20am @ill G "oin / Denomination P 100 %0 20 % 1 0.2% Che"! / Date De" 30 De" 30 De". 31 De". 31 De". 31 Nuantity % 00 0& 1& +$ 32 4mount P %00 2,000 +$0 +0 +$ & 4mount P 1,200 10,000 1,$&0 17,&00 &,300 (otal P 03,300 10,000 P %7,300 P 22,%70 P 22,1$$

P 3,7$0

Ma!er Cu todian 67D, 8n". Mario 7an ang M6U Corp. 4teneo, 8n".

02,+&0 22,%70 P $+,310

Unreimbur ed -ou"her (otal "a h a""ounted

7e

a""ountabilitie / Petty "a h P 2%,000 Colle"tion ;per OCF 1 03,300 Un"laimed alary 7,%00 >:"e tra-el ad-an"e 1,$&0 Unre"eipted "olle"tion .67D 10,000

+1,0&0 ;P 22,1$$1

Ca h 6hortage Ben0amin Corp1 A"0! tin2 3o!rnal Entrie De#ember .%4 *5%5 11 Ca h 4""ount Ce"ei-able 21 4d-an"e to o##i"er G employee Po tage e:pen e (ran portation e:pen e Cepair e:pen e Petty "a h #und 31 Unu ed po tage Po tage e:pen e 01 Ca h 6alarie payable %1 Ce"ei-able #rom "u todian Ca h $1 (ra-el e:pen e ;1$,000 L 1,200 L &&01 Petty "a h #und 4d-an"e to o##i"er G employee 10,000

10,000 20,000 1,$20 1%0 &00 22,%70 3$% 3$% 7,%00 7,%00 22,1$$ 22,1$$ 1&,0&0 1,$&0 1+,7$0

Problem 6 Ban- Re#on Una"0! te" to A"0! te" Balan#e Format (he #ollo*ing data *ere ta!en #rom BarayF "he"! regi ter #or the month o# 4pril. BarayF ban! re"on #or Mar"h ho*ed out tanding "he"!, "he"! no. 17& #or P 2,1%0 ;*ritten on Mar"h 201 and one depo it in tran it #or P 0,3%0 ;made on Mar"h 311. Date 2010 4pril 1 1 1 0 27 2+ 8tem @eginning balan"e Depo it Che"! no. 17+ Che"! no. 1&0 Depo it Che"! no. 1&1 Che"! Depo it 2$,1$7 2%0 10,$73 11,770 13,217 @alan"e $,1%0 32,317 32,%$7 21,&+& 33,$72 20,0+0 @alan"e 3,+%0 3,700 &,0%0 ;2,$231 %,%27

(he #ollo*ing i #rom BarayF ban! tatement #or 4pril/ Date 8tem Che"! Depo it 2010 4pril 1 @eginning balan"e 3 Che"! no. 17+ 2%0 3 Depo it 0,3%0 % Che"! no. 1&0 10,$73 % 4utomati" loan &,1%0

% 20 20 30

Depo it 96I "he"! 6er-i"e "harge 8ntere t

2$,017 1,000 $00 &2

31,+00 30,+00 30,300 30,02$

4 ume that any error or di "repan"ie you #ind are BarayF and not the ban!F . 2hat i the adEu ted "a h balan"e a o# 4pril 303 a1 P 2$,&33 "1 P 30,02$ b1 P 2$,&3& d1 P 2$,&72 Problem 6 Sol!tion UnadEu ted balan"e Out tanding "he"! / Che"! no. 17& 2,1%0 Che"! no. 1&1 13,217 Depo it in tran it >rror in re"ording depo it ;2$,017 ? 2$,1$71 4utomati" loan 8ntere t 96I "he"! @an! er-i"e "harge 4rithmeti" error #or/ Che"! no. 17+ ;32,%$7 ? 32,0$71 Che"! no. 1&0 ; 21,&+& ? 21,&+01 Che"! no. 1&1 ;20,0+0 ? 20,0%%1 4dEu ted balan"e Boo20,0+0 Ban30,02$ ;1%,3$71 11,770 2%0 &,1%0 &2 ;1,0001 ;$001 ;%001 ;01 ;3%1 2$,&33

MMMMMMMM 2$,&33

Problem 7 Ban- Re#on Una"0! te" to A"0! te" Balan#e Format >dgardo Co. *a organi5ed on Jan. 2,2010. (he #ollo*ing item are #rom the "ompanyF trial balan"e on De". 31, 2010. Ordinary hare "apital 6hare premium Mer"handi e in-entory 7and @uilding Iurniture and #i:ture 4""ount re"ei-able P 1,%00,000 1%0,000 $+,000 1,000,000 1,000,000 3$7,000 1$%,000

4""ount payable 9ote payable ? ban! 6ale Operating e:pen e ;in"luding depre"iation o# P 000,0001 4dditional in#ormation i a #ollo* / 1. Depo it in tran it, De". 31 2. 6er-i"e "harge #or De". 3. Out tanding "he"! , De". 31 0. @an! balan"e, De". 31 %. >dgardo CoF mar! up on ale i 30' 11 21 31 01 %1 $1 2hat i 2hat i 2hat i 2hat i 2hat i 2hat i

3&+.$%0 %00,000 $,23%,200 1,00%,1%0 3&0,$$0 2,000 07%,000 &+2,000

the total "olle"tion #rom ale 3 the total payment #or mer"handi e pur"ha e 3 the total "a h re"eipt per boo! 3 the total "a h di bur ement per boo! 3 the "a h balan"e per boo! on De". 313 the adEu ted "a h balan"e on De". 313

Problem 7/ Sol!tion, 1. 6ale 7e a""ount re"ei-able Colle#tion )rom #! tomer 2. Co t o# ale ;$,23%,000 : 70'1 4dd mer"h. 8n-ty, De". 31 Bood a-ailable #or ale<Pur"ha e 7e a""ount payable, De". 31 Pa+ment )or p!r#&a e 3. 8 ue pri"e o# ordinary hare ;1,%00,000 L 1%0,0001 9ote payable ? ban! Colle"tion Total #a & re#eipt per boo0. 7and $,23%,000 1$%,000 845894:55 0,3$0,$00 $+,000 0,033,$00 3&+,$%0 6456.4995 1,$%0,000 %00,000 $,0$+,&00 :4*%94:55 1,000,000

@uilding Iurniture and #i:ture Operating e:pen e paid ;1,00%,1%0 ? 000,0001 Payment #or pur"ha e Total #a & "i b!r ement per boo%. Ca h re"eipt per boo! ; ee no. 31 Ca h di bur ement per boo! ;no. 01 Ca h balan"e per boo! , De". 31 $. UnadEu ted balan"e Depo it in tran it 6er-i"e "harge Out tanding "he"! 4dEu ted balan"e

1,000,000 3$7,000 $0%,1%0 0,003,++0 ;46%84%65 &,21+,&00 7,01$,100 &03,$$0 @oo! &03,$$0 ;2,0001 ;07%,0001 &01,$$0 &01,$$0 @an! &+2,000 3&0,$$0

Problem 8 Comp!tation o) Ca & re#eipt < Di b!r ement 8n "onne"tion *ith your audit o# the "a h "ount o# 4nnie Corp., you gathered the #ollo*ing in#ormation/ a1 b1 "1 d1 @alan"e per ban!, De". 1,2010 (otal ban! re"eipt ;"redit 1 in De"ember @alan"e per ban!, De". 31, 2010 Out tanding "he"! , 9o-. 30, 2010 ;in"luding P12,000 paid by ban! in De".1 e1 Out tanding "he"! , De". 31, 2010 ;in"luding "he"! i ued in 9o-ember1 #1 Depo it in tran it, 9o-. 30, 2010 g1 4 "u tomerF "he"! re"ei-ed on De". 0, 2010, *a returned by ban! on De". 7 mar!ed J96IK. 8t *a redepo ited on De". &, 2010. (he only entry *a made to ta!e up the "olle"tion on De". 0, 2010. 4 !ed/ 11 2hat i the total boo! re"eipt in De"ember3 21 2hat i the total ban! di bur ement in De"ember3 31 2hat i total boo! di bur ement in De"ember3 10%,000 30$,000 110,%00 $7,000 +0,1$2 3+,%0&

11,103

Problem 8 Sol!tion 11 @an! re"eipt ;"redit 1 in De". 7e Depo it in tran it, 9o- 30 96I "he"! redepo ited in De" @oo! re"eipt ;debit 1 in De" 21 @an! balan"e, De". 1, 2010 4dd/ ban! re"eipt in De" (otal 7e / ban! bal.,De". 31,2010 @an! di bur ement in De"ember 31 @an! di bur ement in De"ember 4dd/ out tanding "he"! , De". 31 (otal 7e / out tanding "he"! , 9o- 30 96I "he"! @oo! di bur ement in De". $7,000 11,103 30$,000 3+,%0& 11,103 %0,$01 2+%,30+ 10%,000 30$,000 0+1,000 110,%00 37$,%00 37$,%00 +0,1$2 070,$$2 7&,103 3+2,%1+

Problem ; Comp!tation o) A"0! te" Ca & Balan#e (he Ca h a""ount ho* a balan"e o# P 22%,000 be#ore re"on"iliation. (he ban! tatement doe not in"lude a depo it o# P 11,%00 made on the la t day o# the month. (he ban! tatement ho* a "olle"tion by the ban! o# P 0,700 and a "u tomerF "he"! #or P 1,$00 *a returned be"au e it *a 96I. 4 "u tomerF "he"! #or P 2,2%0 *a re"orded on the boo! a P 2,700, and a "he"! *ritten #or P 3+% *a re"orded a P 0&%. 2hat hould be the "orre"t "a h balan"e3

Problem ; Sol!tion, @alan"e per boo! @an! "olle"tion Cu tomerF 96I "he"! O-er tatement o# "a h re"eipt ;2,700 ? 2,2%01 O-er tatement o# "a h di bur ement ;0&%.3+%1 4dEu ted "a h balan"e 22%,000 0,700 ; 1,$001 ; 0%01 +0 227,700

PROBLEM : CASH COUNT4 AD3USTIN= 3OURNAL ENTRIES Mila 7im i the "a hier o# the Plaridel Bla Company. 4 repre entati-e o# the Ceye CP4 , you *ere a igned to -eri#y her "a h on hand in the morning o# Jan. 0, 2007. Hou began to "ount at +4M in the pre en"e o# Mi 7im. 8n the "our e o# your "ounting you #ound "urren"ie in paper bill and "oin together *ith "he"! , -ou"her and other item , *hi"h are mentioned belo*. Bill 2 #i#tie , + t*entie , 13 ten Coin P %.00 . % loo e 1.0 0 . 70 loo e 0.2% . % roll , 32 loo e ;%0 p" to a roll1 0.10 .10 roll , 1% loo e ;%0 p" to a roll1 0.0% . 1$ roll , + loo e ; %0 p" to a roll1 C&e#- , Ma!er Date Payee 4mount Jo e Cru5, 4 t. Mgr 12<23<0$ Plaridel Bla P $0.00 Mila 7im, Ca hier 12<2$<0$ Plaridel Bla 00.00 IOU , 4.Da-id, Eanitor 12<20<0$ P 3%.00 C.(irao, "ler! 12<22<0$ 2%.00 Pedro Munar, boo!!eeper 12<20<0$ 1%.00 Pett+ Ca & Vo!#&er )or Repleni &ment

Payee @ilbao, me enger Co ario G "o. Di"tory 7iner @ureau o# Po t ; tamp Dallo, Carpenter (ello

Date 12<1$<0$ 12<17<0$ 12<1&<0$ 1 12<1&<0$ 12<20<0$ 12<21<0$

4""ount Charged 4d-an"e .employee 6upplie Ireight.in 6upplie Cepair Mi " >:pen e

4mount P 10.00 10.%0 1&.2% 30.00 0%.00 1%.00

Hour in-e tigation al o di "lo ed the ##./ 11 (he balan"e o# petty "a h #und per boo! i P +00. 21 Ca h ale o# Jan. 2, 2007 amounted to P &$% per ale re"ord , *hile Ca h Ce"eipt @oo! and Depo it lip ho*ed that only P 7$% *a depo ited in the ban! on Jan. 3, 2007. 31(he ##. employee pay en-elope had been opened and the money remo-ed. >a"h en-elope *a mar!ed Jun"laimed.K. 9. Coy P 33.2% B. Bloria P 20.7% Re'!ire", 1. Prepare *or!ing paper ho*ing your "a h "ount. 2. Prepare ne"e ary adEu ting Eournal entrie *ithout e:planation in the boo! o# the "ompany. PROBLEM : SOLUTION, RE$UIREMENT >%? Plaridel Bla Co. Ca h Count 6heet Jan. 0, 2007 Nuantity 4mount 2 P 100.00 + 1&0.00 13 130.00 % P 2%.00 70 70.00 2&2 70.%0 %1% %1.%0 $0+ 32.0%

@ill /

Denomination P %0 20 10 Coin / % 1 0.2% 0.10 0.0% (otal bill and "oin Ca h 8tem / Che"! #or depo it/ Date Ma!er 12<23<0$ J.Cru5 12<2$<0$ M. 7im Unrepleni hed -ou"her / Date Payee

(otal P 010.00

2%3.0% P $$3.0%

Payee Plaridel Plaridel Parti"ular

4mount P $0.00 00.00 4mount

P 100.00

12<1+<0$ 12<1&<0$ 12<1&<0$ 12<20<0$ 12<21<0$

Co ario G Co. Di"tory 7iner @ureau o# Po t Dallo,"arpenter (ello

6upplie Ireight.in 6upplie Cepair Mi "ellaneou

P 10.%0 1&.2% 30.00 0%.00 1%.00 4mount P 10.00 3%.00 2%.00 1%.00

123.1%

4d-an"e or 8OU Date Payee 12<1$<0$ @ilbao 12<20<0$ 4. Da-id 12<22<0$ (irao 12<20<0$ Pedro Munar (otal amount o# #und per "ount (otol amount o# #und per boo! or re"eipt /
Petty "a h #und per ledger Un"laimed *age Undepo ited "olle"tion ;&$% ? 7$%1

&%.00 P +71.$0

P +00.00 %&.00 100.00

6,OC(4B> PROB1 : RE$UIREMENT * AD3USTIN= ENTRIES 11 6upplie e:pen e ;10.%0 L 301 Ireight ? in Cepair and maintenan"e Mi "ellaneou e:pen e Petty Ca h Iund 21 4d-an"e to employee Petty Ca h Iund 31 Ca h in ban! 6alarie payable 01 4""ount re"ei-able ? "a hier Petty "a h #und PROB1 9 PROOF OF CASH 00.%0 1&.2% 0%.00 1%.00

1,0%$.&0 P ; &$.001

123.1% &%.00 &%.00 %&.00 %&.00 &$.00 &$.00

(he #ollo*ing data are to be u ed in re"on"iling the May 31, 200$ ban! balan"e o# 4 ia >n-elope Company/ 200$ 4pril May

Ca h in ban! balan"e ? end @an! tatement balan"e ? end @an! er-i"e "harge Che"! mar!ed 96I Depo it in tran it ? end Dra#t "olle"ted by ban! ;re"orded by "ompany the month ## "olle"tion1 Out tanding "he"! ? end Che"! o# 4 ia >ngine Corp. "harged to the "ompanyF a""ount in error

P 3,%$1.00 7003.%0 $.00 &1%.00 +%0.00 1,%00.00 0,0$3.00 30+.%0

P 0,$2+.72 3,&$2.20 $.&0 11&.00 +2%.00 202.00 10+.$& $0.00

Che"! no. $12+ erroneou ly re"orded in the "he"! regi ter a P 7&O the "orre"t amount i ;thi "he"! i out tanding on May 31,F0$1 Ce"eipt during the month (otal "redit to "a h in ban! (otal "harge on ban! tatement

&7.00 02,700.17 01,$31.0% 0%,317.%7

RE$UIRED, Prepare a proo) o) #a & >! e a"0! te" balan#e met&o"?1 PROB1 9 / SOLUTION 4 ia >n-elope Co. Proo# o# Ca h Ior the Month ended May 31, 200$
@alan"e %< 1 < 0$ UnadEu ted boo! balan"e 4dd ;dedu"t1/ @an! er-i"e "harge 4pril 30 May 31 96I "he"! 4pril 30 May 31 3,%$1.00 ; $.001 ; $.001 $.&0 ; &1%.001 11&.00 May May Ce"eipt Di br emt 02,700.17 01,$31.0% @alan"e % < 31< 0$ 0,$2+.72

; $.&01 ;11&.001

;&1%.001

Dra#t "olle"ted by ban! 4pril May Che"! no. $12+ erroneou ly re"orded ; &7 ? 7& 1 4dEu ted boo! balan"e

1,%00.00

;1,%00.001 202.00 +.00

202.00 ; +.001 0,$+7.+2 @alan"e % < 31< 0$ 3,&$2.20

0,200.00 @alan"e %< 1 < 0$ 7,003.%0 +%0.00 ;0,0$3.001

01,002.17

00,+00.2%

UnadEu ted ban! balan"e 4dd ;dedu"t1/ Depo it in tran it 4pril 30 May 31 Out tanding "he"! 4pril 30 May 31 Che"! erroneou ly "harged<debited to Co.F a""ount/ 4pril May

May May Ce"eipt Di br emt 01,77$.27 0%,317.%7 ;+%0.001 +2%.00 ;0,0$3.001 10+.$&

+2%.00 ;10+.$&1

30+.%0

;30+.%01 ;$0.001 $0.00

4dEu ted ban! balan"e

0,200.00

01,002.17

00,+00.2%

0,$+7.+2

PROB1 %5 >E@1 ;/%6 IN BOOA? HOMEBORA SOLUTION, Re'!ire", Proo) o) Ca & )or De#ember >ban- to boo-? (arla" Company Proo# o# Ca h Ior the Month ended De". 31, 2010
@alan"e 9o-. 30<10 0%,200 ;10,0001 De" Ce"eipt 100,000 De" Di br emt 13%,200 ;10,0001 0.000 ;20%1 ;2,%001 3,%00 @alan"e De". 31<10 10,000

UnadEu ted ban! balan"e 4dd ;dedu"t1/ Out tanding "he"! 9o-ember De"ember 96I "he"! returned in De". Depo it in tran it 9o-ember De"ember @an! "harge

;0,0001 20% 3.%00

2,%00

9o-ember De"ember Che"! o# another "ompany erroneou ly "harged by ban! in 9o-ember, "orre"ted in De". UnadEu ted boo! balan"e

20

20 ;2%1 ;2$01 100,700 12&,++0

2%

2$0 3&,020

+,770

>*? A"0! tin2 0o!rnal entrie %*C.%C%5, %? A##o!nt re#ei(able Ca & in ban-

*67 *67

*? Ban- #&ar2e *7 Ca & in ban*7 >.? Amo!nt o) #a & in Balan#e S&eet4 De#1 .%4 *5%5, Balan#e per boo- 4 %*C.%C%5 94;;5 Le NSF #&e#>*67? Ban- #&ar2e >*7? A"0! te" balan#e per boo- 4 %*C.%C%5 94755

PROB1 %% >E@1 ;/%7 IN BOOA? HOMEBORA CASH < OTHER ITEMS ANSBER, A? POST/DATED CHECA report a a##o!nt re#ei(able be# it i not ne2otiable !ntil t&e "ate o) t&e #&e#-1 B? ACCOUNTS RECEIVABLE be#a! e it not a ne2otiable in tr!ment at t&i time1 Debit ACR an" #re"it Ca &1 I) !ltimatel+ not #olle#tible4 Drite o)) a ba" "ebt1 C? NOTE RECEIVABLE or a a SHORT/TERM INVESTMENT1 Inappropriate to report >or re#or"? t&i a #a &1 D? P *55 a PETTE CASH in t&e balan#e reporte" a #a &1 Imme"iatel+ repleni & t&e )!n" )or P %8: an" re#or" it on De#ember .% a "ebit to eFpen e >in#l!"in2 t&e P % #a & &ort? an" #re"it to Ca &1 Alternati(el+4 an a"0! tment ma+ be ma"e b+ "ebitin2 eFpen e an" #re"itin2 pett+ #a & )!n" on De#1 .%4 *5591

E? P .5 o) po ta2e tamp a PREPAID POSTA=E E@PENSE tamp are not #a &1 F? In#l!"e t&e #a &ierG #&e#- in t&e balan#e be#a! e it Dill be a##epte" b+ ban- )or imme"iate "epo it1 =? T&e e #&e#- &o!l" not be re#or"e" a *559 pa+ment be#a! e t&e #ompan+ &a )!ll #ontrol o) t&em1 H? T&e note an" intere t &o!l" not be in#l!"e" in t&e #a & balan#e be#a! e it &a not been #olle#te"1 T&e P *54555 &o!l" be reporte" a a note re#ei(able an" intere t o) P 675 >*54555 F 9H F .C%*? &o!l" be a##r!e" b+ a "ebit to intere t re#ei(able an" a #re"it to intere t re(en!e )or P 6751 HoDe(er4 i) t&e ban- report t&at t&e note &a been #olle#te" on or be)ore De#ember .%4 *559 an" a #re"it to t&e #ompan+G a##o!nt &a been ma"e4 t&i item ma+ be in#l!"e" in t&e #a & balan#e1

PROB1 %* >E@1 ;/9 IN BOOA? ACCOUNTIN= FOR CASH SHORTA=E Iorm Company @an! Ce"on"iliation 6tatement June 30, 2010 UnadEu ted balan"e 4dd ;dedu"t1 re"on"iling item / Ca h on hand 9ote "olle"ted by ban! Out tanding "he"! Che"! no. 1+2 1,000 1+3 720 1+0 &1$ 1+% $+2 @alan"e 6hortage 4dEu ted balan"e @oo! 30,700 %00 @an! 27,000 +,22&

3%,200 ; 2,2001 32,+$0

;3,2$&1 32,+$0 32,+$0

(he "a hier attempted to "on"eal the hortage by/ ;11 Under tating the out tanding "he"! a1 >:"luding "he"! P 1+2 1,000 b1 Under#ooting li t o# out t. "he"! 200 ;21 4dding in tead o# dedu"ting note "olle"ted by ban! thereby "o-ering up 1,000 (otal 2,200 6ugge tion to impro-e internal "ontrol/ ;11 @an! re"on"iliation tatement hould be prepared by omeone other than the "a hier. ;21Colle"tion hould be depo ited inta"t.

PROB1 %. >;/%; IN BOOA?, UnadEu ted balan"e 4dd ;dedu"t1 adEu tment / Depo it in tran it ;17%,2%0 ? %0,0001 Po tdated "u tomerF "he"! re"orded 12<31<10 9ote "olle"ted by ban! Out tanding "he"! ;20$,7%0 ? 10,7%0 ? 37,2101 Che"! payable to a upplier relea ed on 1<%<11 Che"! dated 1<0<11 re"orded and relea ed De". F10 >rroneou ban! "redit "orre"ted Jan. 2<11 4 "orre"ted Unlo"ated di##eren"e ; hortage1 @alan"e a adEu ted 2%0,0$0 @an! 3%0,000 12%,2%0 ;11 ;%0,0001 1%,000 ;1+0,7+01 ;21 10,7%0 ;$1 37,210 ;30,0001MMMMMMMMMMMMMM 2%0,000 310,0$0 ;$0,0001 ;01 2%0,0$0 ;31 @oo! 2+3,%00

PROB1 %6 PROOF OF CASH

On O#tober .%4 *5%%4 t&e boo--eeper prepare" t&e )olloDin2 ban- re#on#iliation )or CompleF Compan+1 Ca & a##o!nt balan#e Le , Ban- er(i#e #&ar2e Depo it o!t tan"in2 C&e#- erroneo! l+ #&ar2e" b+ ban- a2ain t #ompan+G a##o!nt Balan#e A"", C&e#- o!t tan"in2 Unre#or"e" #olle#tion Ban- tatement balan#e 9954555 74555 674555 %54555 %*74555 674555 854555 9.54555 %;54555 %4%554555

T&e entit+G boo- )or t&e mont& o) No(ember .54 *5%% &oDe" t&e )olloDin2 entrie , O#tober .% balan#e 9954555 Cre"it %4*554555 Debit ;%54555 T&e ban- tatement &oDe" t&e )olloDin2 on No(ember .54 *5%%, O#tober .% balan#e %4%554555 Cre"it 7554555 Debit %45554555 T&e No(ember ban- "ebit in#l!"e t&e )olloDin2, Debit memo )or er(i#e #&ar2e %54555 Debit memo )or a #! tomerG NSF #&e#754555 D!rin2 t&e mont& o) No(ember4 t&e ban- #orre#te" t&e P %54555 error #ommitte" in prior mont&1 T&e entit+ re#or"e" a #a & re#eipt a #! tomerG note o) P%554555 pla#e" Dit& t&e ban)or #olle#tion on No(ember .51 T&e note Da not #olle#te" !ntil t&e !b e'!ent mont&1 Re'!ire", >%? Prepare a proo) o) #a & )or t&e mont& o) No(ember *5%% )olloDin2 t&e a"0! te" balan#e met&o"1 >*? Prepare t&e a"0! tin2 entrie on No(ember .54 *5%%1

PROB1 %6 SOLUTION, Comple: Company Proo# o# Ca h Ior the Month ended 9o-ember 30
O#t1 .% Una"0! te" boo9954555 A"" >"e"!#t?, Unre#or"e" #olle#tion/ O#tOber 674555 Ser(i#e #&ar2e, O#t >74555? No( Erroneo! #a & re#eipt NSF #&e#-/No( A"0! te" booUna"0! te" banA"" >"e"!#t?, Depo it in tran it, O#t No(1 >a? O!t tan"in2 #&e#- , O#t No( >b? Erroneo! "ebit /O#t A"0! te" ban%45.54555 %4%554555 674555 >%*74555? %54555 %45.54555 >%54555? 7874555 Re#eipt ;%54555 >674555? >74555? %54555 >%554555? 754555 7874555 7554555 > 674555? %*54555 %4*77455 %45554555 %54555 >%554555? >754555? .654555 8554555 Di b!r ement %4*554555 No(1 .5 7554555

%*54555 >%*74555? .:54555 > .:54555? IIIIIIIIIIIIIIIIIIIII %4*774555 .654555

>a? Depo it in tran it4 O#t1 .% A"" Ca & re#eipt "epo ite", Boo- "ebit O#t1 #olle#tion re#or"e" No(1 C! tomerG note Total Le Ban- #re"it Corre#tion o) ban- error Depo it in tran it4 No(1 .5 >b? O!t tan"in2 #&e#- 4 O#t1 .% A"" #&e#- i !e" b+ "epo itor

674555 ;%54555 >674555? >%554555?

7874555

8%54555 7554555 >%54555? 6954555 %*54555 %*74555

Boo- #re"it O#tober ban- er(i#e #&ar2e Total Le Ca & pai" b+ banBan- "ebit No(ember ban- er(i#e #&ar2e No(ember NSF O!t tan"in2 #&e#- 4 No(1 .5 AD3USTIN= ENTRIES, >%? NOTE RECEIVABLE CASH IN BANA >*? BANASERVICE CHAR=E CASH IN BANA >.? ACCOUNTS RECEIVABLE CASH IN BANA

%4*554555 >74555? %4%974555 %4.*54555 %45554555 >%54555? >754555?

9654555 .:54555

%554555 %554555 %54555 %54555 754555 754555