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Unformatted text preview: ELIMINATION ROUND EASY ROUND RFJPIA CUP LEVEL 5 Auditing Problems (EASY QUESTION #1) You were engaged to examine the accounts of Power Play Inc. as of December 31, 2010. Your audit disclosed that the cash counted on December 31, 2010 included two customers checks amounting to P5,000 both dated in January 2011. These checks were recorded in the books in December and were accepted for deposit by the bank on due dates. The adjusting entry is: Answer: Dr. Accounts Receivable 5,000 Cr. Cash 5,000 RFJPIA CUP LEVEL 5 Auditing Problems (EASY QUESTION #2) As an auditor, you were asked by your client to examine its accounts as of December 31, 2010. Your audit disclosed that checks with a total of P10,000 as payment to suppliers were prepared and taken up as debits to accounts payable. One of these checks in the amount of P2,000 was cancelled on January 5, 2011 and replaced with another for the correct amount of P2,500. No entry was made for the cancellation. The adjusting entry is: Answer: None. No adjustment is necessary. RFJPIA CUP LEVEL 5 Auditing Problems (EASY QUESTION #3) Your audit of Super Club Co. for the year ended December 31, 2010 disclosed that customers checks amounting to P4,500 were returned during December 2010 by the bank with the notation NSF. Of these checks P3,000 had been redeposited and cleared by the bank during the month. No entries were made for the return or redeposit. The adjusting entry is: Answer: Dr. Accounts Receivable 1,500 Cr. Cash 1,500 RFJPIA CUP LEVEL 5 Auditing Problems (EASY QUESTION #4) You were engaged to audit the records of Generation, Inc. as of December 31, 2010. Your audit shows that goods costing P20,000 were excluded from the ending inventory. The selling price of these goods was P30,000. The goods were shipped by your client on December 29, 2010, FOB shipping point. The transaction was not recorded in 2010. The adjusting entry is: Answer: Dr. Accounts Receivable 30,000 Cr. Sales 30,000 RFJPIA CUP LEVEL 5 Auditing Problems (EASY QUESTION #5) Your audit of your client as of December 31, 2010 disclosed that merchandise costing P15,000 were still included in ending inventory although these were already invoiced and recorded as sales to customers on NFJPIA-Region X and CARAGA Council RFJPIA Cup Level 5 Auditing Problems December 31. The sales invoices totaling P25,000 were no longer recorded when the goods were delivered on January 5, 2011. The adjusting entry is: Answer: Dr. Cost of Sales 15,000 Cr. Inventory 15,000 AVERAGE ROUND RFJPIA CUP LEVEL 5 Auditing Problems (AVERAGE QUESTION #1) Just In Love Corp. decided that the allowance for bad debts should be adjusted to equal the estimated amount required based on aging the accounts as of December 31. Following data were gathered: Allowance for bad debts, January 1, 2010 P120,000 Provision for bad debts during 2010 at 2% 60,000 of P3,000,000 sales Bad debts written off in 2010 75,000 Estimated bad debts per aging of accounts on...
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This note was uploaded on 01/19/2012 for the course SBAA 102 taught by Professor Qwwet during the Spring '11 term at University of the Philippines Diliman.
- Spring '11