How much is the cash shortage as of November

Assignment Help Accounting Basics
Reference no: EM132430492

Question - The Manila Corporation was organized on January 15, 2019 and started operation soon thereafter. The Company cashier who acted also as the bookkeeper had kept the accounting records very haphazardly. The manager suspects him of defalcation and engaged you to audit his account to find out the extent of the fraud, if there is any. On November 15, when you started the examination of the accounts, you find the cash on hand to be P18,800. From inquiry at the bank, it was ascertained that the balance of the Company's bank deposit in current account on the same date was P200,000. Verification revealed that the check issued for P15,040 is not yet paid by the bank. The corporation sells at 30% above cost.

Your examination of the available records disclosed the following information:

Capital stock issued at par for cash

P 1,200,000

Land purchased and paid in full

500,000

Mortgage liability secured by real state

150,000

Machinery and equipment (gross) bought on which there is still balance unpaid of P15,000

125,000

Outstanding notes due to bank

200,000

Total amount owed to creditors on open account

275,250

Total sales

1,893,710

Total amount still due from customers

638,980

Inventory of merchandise on November 15 at cost

383,400

Expenses paid excluding purchases

426,120

Provide the following:

How much is the cash shortage as of November 15, 2019?

How much is the unadjusted cash balance as of November 15, 2019?

How much is the payments for purchases as of November 15, 2019?

Reference no: EM132430492

Questions Cloud

How does a relationship help a marketing manager : What is a relationship between two variables, and how does a relationship help a marketing manager?
Constructs of a statement of work and a scope statement : What's the difference between the constructs of a statement of work (SOW) and a scope statement?
Why did copyright laws become stricter and more punishing : Why did copyright laws become stricter and more punishing in the late 20th century? Make an argument for legalizing the copying of music or software.
What is the importance of advertising : What is the importance of advertising? Explain different types of advertisements. What is inventory? What are different types of inventory?
How much is the cash shortage as of November : The Manila Corporation was organized on January 15, 2019 and started operation soon thereafter. How much is the cash shortage as of November 15, 2019
Social Stratification Assignment : Social Stratification Assignment help and solutions:-Why do some corporations choose to set up factories in places like Mexico, Bangladesh
What kind of information was compromised : Locate an article on a system breach (Target stores, Sony Pictures, US Government, and many more).In 2-3 paragraphs, briefly explain the situation.
Explain the steps to managing a project : Explain the steps to managing a project using a traditional methodology.
Determine are such concerns justified in your view : Critics worry that databases of human traits used to maintain corporate security may actually pose a privacy threat to individuals, if such data were.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd