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    Specialized 1

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    Virgo Cruz
    The document provides financial information for the audit of Bolong Company for 2019, including accounts receivable balances, purchases, changes in payables and inventory, and cash collections. It also provides information on gross profit percentages, cash sales percentages, and sales returns. The correct cash sales amount is 273,000.

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    Specialized 1

    Uploaded by

    Virgo Cruz
    134 views4 pages
    The document provides financial information for the audit of Bolong Company for 2019, including accounts receivable balances, purchases, changes in payables and inventory, and cash collections. It also provides information on gross profit percentages, cash sales percentages, and sales returns. The correct cash sales amount is 273,000.

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    The document provides financial information for the audit of Bolong Company for 2019, including accounts receivable balances, purchases, changes in payables and inventory, and cash collections. It also provides information on gross profit percentages, cash sales percentages, and sales returns. The correct cash sales amount is 273,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    134 views4 pages

    Specialized 1

    Uploaded by

    Virgo Cruz
    The document provides financial information for the audit of Bolong Company for 2019, including accounts receivable balances, purchases, changes in payables and inventory, and cash collections. It also provides information on gross profit percentages, cash sales percentages, and sales returns. The correct cash sales amount is 273,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    1.

    The following information was gathered during the audit of Bolong Company for 2019:

    Accounts Receivable, Jan. 1, 2019 150,000

    Disbursements for purchases 580,000

    Increase in Trade accounts payable 50,000

    Decrease in merchandise inventory 20,000

    Collection on account 450,000

    Gross profit applied consistently by the client on cost is 40% for three years up to 2019 of the current
    audit year.

    Of the total sales, 30% is cash sales.

    The sales reported per BIR is net of 12% value added tax (VAT)

    Sales return on account sales including 12% VAT 10,040

    Based on the evidence you gathered, what is the total cash sales?

    CORRECT ANSWER: 273,000

    This study source was downloaded by 100000824177033 from CourseHero.com on 05-27-2022 04:35:08 GMT -05:00

    https://www.coursehero.com/file/137264040/specialized-1docx/
    2.USING BOLONG Company DATA

    The following information was gathered during the audit of Bolong Company for 2019:

    Accounts Receivable, Jan. 1, 2019 150,000

    Disbursements for purchases 580,000

    Increase in Trade accounts payable 50,000

    Decrease in merchandise inventory 20,000

    Collection on account 450,000

    Gross profit applied consistently by the client on cost is 40% for three years up to 2019 of the current
    audit year.

    Of the total sales, 30% is cash sales.

    The sales reported per BIR is net of 12% value added tax (VAT)

    Sales return on account sales including 12% VAT 10,040

    What is the amount of accounts receivable as of December 31, 2019?

    CORRECT ANSWER: 103,400

    This study source was downloaded by 100000824177033 from CourseHero.com on 05-27-2022 04:35:08 GMT -05:00

    https://www.coursehero.com/file/137264040/specialized-1docx/
    3.The following information pertains to KHUBID Corporation on December 31, 2020.

    Petty cash fund using imprest system (Bills and coins on hand of from the

    petty cash custodian P3,500) 10,000

    Reconciled amount in general checking account with

    BDO Bank (cash balance per book 395,000) 350,000

    SECURITY BANK (Cash accumulated in a special fund

    that will be used for plant expansion) 2,250,000

    LAND BANK current account (Overdraft) 12,000

    TIPID Bank (ATM ) Salary fund 90,000

    Cash surrender value 360,000

    Cash travel advances in the hand of company sales persons 2,000

    What is the total amount that KHUBID should report as “Cash and Cash Equivalent in the current assets
    section of the statement of financial position on December 31, 2020?

    CORRECT ANSWER: 443,500

    4.Your audit of SINIBAK PHARMA disclosed that the company failed to recognize accruals and
    prepayments since the inception of its business three years ago. The earnings before tax, accrual and
    prepayments at the end of 2020 are given below:

    Earnings before tax 1,400,000

    Items not recognized at year-end were as follows

    Prepaid insurance 20,000

    Accrued wages 25,000

    Rent revenue collected in advance 32.000

    Interest receivable 27,000

    The correct earnings before tax should be presented in the income statement is

    CORRECT ANSWER: 1,390,000

    This study source was downloaded by 100000824177033 from CourseHero.com on 05-27-2022 04:35:08 GMT -05:00

    https://www.coursehero.com/file/137264040/specialized-1docx/
    In auditing the August 31, 2020 bank reconciliation prepared by SPUTNIK Corporation, the following
    information data were provided to you:

    Balance per bank statement, 8/31/20 180,500

    Deposit in transit, 8/31/20

    Cash deposit 2,500

    Check deposit local 20,000

    regional 12,500

    Post dated check 5,000 40,000

    Return of customer's check for

    Insufficient fund, 8/31/20 ( 6,000)

    Outstanding checks, 8/31/20

    Checks issued dated 6-30-20 5,000

    Checks issued dated 7-30-20 10,000

    Checks issued dated 8-15-20 12,5000

    Checks issued dated 9-15-20 15,000 ( 42,500)

    Bank service charge for August ( 1,000 )

    Notes collected by the bank ( 30,000)

    Balance per book, 8/31/20 141,000

    ========

    Based on your audit of the August 31, 2020 bank reconciliation, what should be the correct amount of
    cash balance to be

    presented in the statement of financial position? CORRECT ANSWER: 185,500

    This study source was downloaded by 100000824177033 from CourseHero.com on 05-27-2022 04:35:08 GMT -05:00

    https://www.coursehero.com/file/137264040/specialized-1docx/
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