Problem 1

1. Adjusted deposit in transit at December 31, 2015

DIT beginning
175,250.00
-50,000.00
P 125,250
2. Adjusted Outstanding Checks
OC Beginning
246,750.00
14750
37210 -51,960.00
P 194,790
3. Adjusted Cash
DIT
OC
Bank Error

350,000.00
125,250.00
-194,790.00
30,000.00
P 250,460

4. Cash shortage
293,500.00
14,750.00
37,210.00

51,960.00
-50,000.00
295,460.00
-250,460.00
P 45,000

5. Net Adjustment of Cash

293,500.00
-250,460.00
P 43, 040
6. Net Adjustment to A/P:

P 51,960

Problem 2
Cash Receipts:
Investment
Loan Proceeds
Collections from Customers

Cash Disbursements:
Purchases (250,000-15,000)
tore Fixtures (50,000- 5,000)

150,000.00
98,000.00
414,000.00
662,000.00

235,000.00
45,000.00

Payment of Loan
Paid Expenses

Cash Balance per book

Collection from customers:
Purchases
Merchandise Inventory 12/31
Cost of Sales
Gross Profit
Sales
A/R, 12/31

Receipts

80,000.00
180,000.00
540,000.00
122,000.00

250,000.00
-30,000.00
220,000.00
264,000.00
484,000.00
-70,000.00
414,000.00

Reconciliation:
Unadjusted Balances:
Petty Cash Fund
Outstanding Checks
Deposit in Transit
Total
Cash Shortage
Adjusted Balances

Bank
30,200.00
-4,500.00
5,000.00
30,700.00
30,700.00

Book
122,000.00
-1,300.00

120,700.00
-90000
30,700.00