disburse d orDecember 31.(6) Savings account with Allied Bank, P900,000 as: tion fuiP480,000 of which was earmarked for an equipmen livered = in2022. You were able to verify that this amount...

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I can't copy the assignment, but I will send pictures. The answers that I need the most are for the problem numbers 7, 8, 9, and 10.


disburse d or December 31. (6) Savings account with Allied Bank, P900,000 as: tion fui P480,000 of which was earmarked for an equipmen livered = in 2022. You were able to verify that this amount was actually disbursed March 2022. (7) Petty cash fund, with imprest balance of P20,000. Your count of the fund on January 4, 2022 revealed the following fund composition: Bills and coins, P12,000; paid petty cash vouchers, all dated December 2021, P6,800; IOUs from employees, with no supporting petty cash vouchers, P1,200; and a check drawn against MetroBank checking account in the amount of P5,300 covering Meralco bill for the period November 29 to December 30, 2021. (8) Checks from customers in settlement of account, both on sales invoices for the month of December 2021, totaling P85,000. The checks were verified to have been recorded in the December cash receipts journal, although one check for P25,000 was dated January 8, 2022 All the checks proved to be good when subsequently deposited. REQUIRED: (a) Prepare all the necessary audit adjusting entries as a result of the foregoij oing. 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Answered 1 days AfterOct 12, 2022

Answer To: disburse d orDecember 31.(6) Savings account with Allied Bank, P900,000 as: tion fuiP480,000...

Rochak answered on Oct 14 2022
64 Votes
Answer 7:
a. Corrected comparative statements
    
    2021
    2020
    Sales
     9,10,000
     7,20,000
    Cost of Sales
     6,15,000
     4,35,000
    
Gross Profit
     2,95,000
     2,85,000
    Other Operating Income
     1,14,000
     63,000
    Total Income
     4,09,000
     3,48,000
    Less: Selling and Administrative Expenses
     2,80,000
     1,70,000
    Less: Depreciation
     4,000
     4,000
    Profit from Operations before Interest and Income Tax
     1,25,000
     1,74,000
    Interest Expense
     80,000
     20,000
    Profit
     45,000
     1,54,000
b. Total Assets were understated in 2020 by 73,000
c. Total Assets were understated in 2021 by 63,400
d. Total Liabilities were understated in 2021 by 90,000
Answer 8:
a. Profit = Unused supplies - Repairs + Depreciation – Loss on trading securities - Interest
= 15,000 – 85,000 + 8,500 – 20,000 – 90,000
= -171,500
Profit was ‘overstated’ by 171,500 for 2020
b. Retained earnings were ‘overstated’ by 171,500 on December 31, 2020
c. Non-Current Assets = Unused supplies + Fair value of securities adjustment
= 24,000 + 50,000
= 74,000
Non-current assets was ‘understatement’ by 74,000 at December 31, 2021
d. Retained Earnings = Unused supplies + Depreciation + Gain on trading securities - Interest
= 24,000 + 8,500 + 50,000 – 72,000
= 10,500
Therefore, retained earnings should be credited by 10,500 for correcting purpose
e. Retained earnings should be 1,628,500
Answer 9:
a. Compute
1. Correct profit/loss
    
    2020
    2021
    2022
    Reported Profit
     ...
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