Assume that you have audited accounts receivable as of 12/31/2023 and are 10 confident that the ending balance should be $7,188,000. Further, you know that the audited balance as of 12/31/2022 was $8,462,000. You also verified cash deposits from customers through a review of the bank account. Based on that review you believe that cash receipts from customers ranges from an amount of $40,000,000 to $41,000,000. Which amount below would represent an overstatement of revenue for the year ending 12/31/2023, based on the facts above? 1) $39,100,000 2) Not determinable based on the facts above. 3) $38,500,000 O4) $39,762,000 O5) $41,000,000
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- Assume that you have audited accounts receivable as of 12/31/2020 and are confident that the ending balance should be $7,188,000. Further, you know that the audited balance as of 12/31/2019 was $8,462,000. You also verified cash deposits from customers through a review of the bank account. Based on that review you believe that cash receipts from customers ranges from an amount of $40,000,000 to $41,000,000. Which amount below would represent an overstatement of revenue for the year ending 12/31/2020, based on the facts above? 1. $38,500,000 2. $41,000,000 3. $39,762,000 4. $39,100,000You are auditing the cash account of GSP Company with a balance of P 840,000 as of December 31, 2022. On deposit in a current account with the Banco de Oro Cash collections not yet deposited to the bank A customer's check returned by the bank for insufficient fund A check drawn by the Vice President of the company dates January 15, 2023 A check drawn by a supplier dated December 28, 2022 for goods returned by GSP Petty Cash Fund of which P 12,000 is in currency; P 4,000 in form of IOUS, and P 4,0 by approved petty cash vouchers for expenses all dated prior to closing of the books 31, 2022 TOTAL Less: Overdraft with BPI secured by a chattel mortgage on the inventories Balance per ledger What is cash balance that would be reported in the statement of financial position as at December 31, 2022? O 1,208,000 O 1,182,000 O 1,220,000 O 1,350,000In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…
- In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…Use the following information for the next five questions. Presented below are relevant extracts from TIYAGA Company's statement of financial position as of December 31, 2023. Cash and cash equivalents Trade and other receivables Inventories Page 1 of 3- AUDITING AND ASSURANCE: CONCEPTS AND APPLICATIONS 1 ● ● During the course of your audit, you noted the following. Cash and cash equivalents The following were included in Cash and cash equivalents: Customer's check for P100,000 returned by bank on December 29, 2023 due to insufficient fund but subsequently redeposited and cleared by the bank on January 3, 2024. Customer's check for P200,000 dated January 2, 2024, received on December 29, 2023. Cash earmarked for bonds payable due on June 30, 2024, P5,000,000. P1,000,000 of compensating balance against short-term borrowing arrangement at December 31, 2023. The compensating balance is legally restricted as to withdrawal. ● Check written and dated December 29, 2023 and delivered to payee…In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…
- In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…The auditor has gathered the following information to test the accuracy of the one prepared by the controller. In particular, the auditor is testing the accuracy of the outstanding cheques. Use the following information to prepare the bank reconciliation and calculate what the total of the outstanding cheques should be. 1. Cash balance - March 31 $39,500 2. Outstanding Deposits $13,810 3. NSF cheque from a customer $750 4. Bank Statement Balance - March 31 $127,100 5. The bank recorded a deposit as $10,000 when the deposit was actually $1,000 6. The bank credited the company's bank account with $3,900 of interest earned 7. The bank statement showed an EFT from a customer for $16,300 8. The bank charged a service charge of $45 9. The company posted cheque #1730 as $890 when the actual amount was properly debited by the bank for $980 a) Outstanding Cheques= $73,095 b) Outstanding Cheques= $76,995 c) Outstanding Cheques=$82,095 d) Outstanding Cheques= $56,795
- In relation to your audit of the cash in bank of your client, MEG Company, the following information were gathered: As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000. The deposit in transit for May is P10,000; for June, P15,000. The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000. Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bank loan. Debit memos total to P500 for May and P2,000 for June. A May book disbursement for P1,500 was not recorded. The correction was made in June. A June collection for P4,500 was not recorded. No correction was made. Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by your client for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month. June book debits – P150,000;…In relation to your audit of the cash in bank of your client, MEG Company, the following information were gathered: As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000. The deposit in transit for May is P10,000; for June, P15,000. The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000. Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bank loan. Debit memos total to P500 for May and P2,000 for June. A May book disbursement for P1,500 was not recorded. The correction was made in June. A June collection for P4,500 was not recorded. No correction was made. Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by your client for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month. June book debits – P150,000;…Beta corp was preparing a bank reconciliation statement as of September 30, 2018. The following were identified: Book balance =$32,800, Deposit in Transit = $4,300 Outstanding checks = $2,200 ,Interest earned on checking account =$100 Customer NSF check returned by bank =$400 Find adjusted cash balance as at September 30, 2018?