285000 9 cm 16 21150 462000 11 dm 57 3900 90000

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285,000 9 CM 16 - 36,000 10 799 21,150 462,000 11 DM 57 3.900 231,000 12 808 90,000 63,000 15 803 3,000 - 16 809 183,000 255,000 17 DM 61 180 24,000 18 813 60,000 57,000 19 CM 20 - 145,500 22 815 18,000 - 23 816 108,000 141,000 23 811 24,000 - 23 801 6,000 - 26 814 66,000 96,000 28 818 150,000 222,000 28 DM 112 360 - 29 821 9,000 15,000 29 CM 36 - 36,000 29 820 12,000 - Totals P1,059,090 P2,493,900 1. DMs 61 and 112 are for service charges. 2. EC is error corrected. 3. DM 57 is for an NSF check. 4. CM 20 is for loan proceeds, net of P450 interest charges for 90 days. 5. CM 16 is for the correction of an erroneous November bank charge. 6. CM 36 is for customers’ notes collected by bank in December. 7. Bank balance on December 31 is P1,776,810 Page 5 Based on the preceding information, determine the following: 1. Outstanding checks at December 31 A. P459,000
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B. P477,000 C. P441,000 D. P487,650 2. Deposit in transit at December 31 A. P114,000 B. P139,500 C. P132,000 D. P 0 3. Adjusted bank receipts for the month of December A. P2,297,400 B. P2,291,400 C. P2,303,400 D. P2,321,400 4. Adjusted book disbursements for the month of December A. P1,228,440 B. P1,246,440 C. P1,210,440 D. P1,246,620 5. Adjusted bank balance at December 31 A. P1,449,810 B. P1,674,810 C. P1,431,810 D. P1,776,810 Page 6 PROBLEM NO. 3 – AUDIT OF ACCOUNTS RECEIVABLE (CONFIRMATION) To substantiate the existence of the accounts receivable balances as at December 31, 2018 of LUKAS COMPANY, you have decided to send confirmation requests to customers. Below is a summary of the confirmation replies together with the exceptions and audit findings. Gross profit on sales is 20%. The company is under the perpetual inventory method.
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Name of Custome r Balance Per Books Comments From Customers Audit Findings Concordi a P150,000 P90,000 was returned on December 30, 2018. Correct balance as is P60,000. Returned goods were received December 31, 2018. Falcon P30,000 Your CM representing price adjustment dated December 28, 2018 cancels this. The CM was taken up by Lukas Company in 2019. Lazaro P144,000 You have overpriced us by P150. Correct price should be P300. The complaint is valid. Silang P112,500 We received the goods only on January 6, 2019. Term is shipping point. Shipped in 2018. Yakal P135,000 Balance was offset by our December shipment of your raw materials. Lukas Company credited accounts payable for P135,000 to record purchases. Yakal is a supplier. 1. If the necessary adjusting journal entry is made regarding the case of Concordia, the net income will A. Decrease by P18,000. . B. Decrease by P90,000. C. Increase by P18,000 D. Increase by P90,000. 2. The effect on 2018 net income of Lukas Company of its failure to record the CM involving transaction with Falcon: A. P30,000 over. B. P30,000 under. C. P6,000 over. D. P6,000 under. 3. The overstatement of receivable from Lazaro is A. P96,000 B. P24,000 C. P72,000 D. P48,000 4. The accounts receivable from Silang is A. Correctly stated. B. P112,500 over. C. P225,000 under. D. P112,500 under 5. The adjusting entry to correct the receivable from Yakal is A. Purchases 135,000 Accounts receivable 135,000 B. Accounts payable 135,000 Purchases 135,000 C. Accounts receivable 135,000 Accounts payable 135,000 D. Accounts payable 135,000 Accounts receivable 135,000 Page 7 PROBLEM NO. 4 – AUDIT OF NOTES RECEIVABLE The HVR Company included the following in its notes receivable as of December 31, 2018: Note receivable from sale of land P2,640,000 Note receivable from consultation 3,600,000 Note receivable from sale of equipment 4,800,000
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The following transactions during 2018 and other information relate to the company’s notes receivable: a) On January 1, 2018, HVR Company sold a tract of land to Triple X Company.
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