Preliminary Exams-Aud 301A Ymata
Preliminary Exams-Aud 301A Ymata
Preliminary Exams-Aud 301A Ymata
Problem 1
The following items are found in the cash account of JHS Company at December 31, 2020.
The company’s controller asks your opinion whether the items listed below should be
considered as part of cash account and come up with adjusting entry to adjust the cash
account.
b. Cash
Accounts receivable
c. Cash
Accounts payable
d. No adjustments
5. (3 points) JHS COMPANY’S adjusted cash and cash equivalents balance at December
31, 2020 is:
Problem 2
The following data pertaining to the cash transactions and bank account of Daydream
Company for May 2020 are available to you:
Questions
1. The adjusted cash in bank balance of Daydream COMPANY at May 31, 2020 is: (2 points)
a. P 87,570 b. P 90,000 c. P 90,570 d. P 90,900
2. The cash in bank balance of Daydream COMPANY at May 31, 2020 is ( 3 points)
a. Understated by P39,318 c. Understated by P38,418
b. Understated by P38,988 d. Understated by P35,988
Problem 3
In connection with an audit, you are given the following bank reconciliation.
BANK RECONCILIATION
December 31, 2020
Balance per ledger, 12/31/20 P 34,349.72
Add: Collections received on the last day of
December and charged to “Cash in Bank”
on books but not deposited 5,324.50
Debit memo for customer’s checks returned
unpaid (check is on hand but no entry has been
made on the books)
4,000.00
2. A check for an account payable entered on books as P12,625 but drawn and paid by
bank as 16,225
a. Should not be included in the reconciliation since the bank already gave the money
to the payee.
b. Should not be included in the reconciliation since bank’s record is always followed.
c. Should be included as deduction in the book reconciliation since this is considered as
book error, thus a reconciling item.
d. Should be included as addition in the book reconciliation since this is considered as
book error, thus a reconciling item.
4. The cash balance of the company per record at December 31, 2020 is:
a. Overstated by P600 c. Understated by P 3,400
b. Overstated by P1,200 d. Overstated by P 6,600