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he Grandioso Company had poor internal control over its cash transactions. Facts about its cash position at lovember 30, 2020 were as follows: he cash book showed a balance of P 189,016.20, which included undeposited receipts. A credit of P 1,000 n the bank's records did not appear on the books of the company. The balance per bank statement was P 55,500. Outstanding checks were: # 62 for P 1,162.50, #183 for P 1,500, #284 for P 2,532.50, #8621 for P ,907.10, #8623 for P 2,068, and #8632 for P 1,452.80. he cashier abstracted all undeposited receipts in excess of P 37,944.10 and prepared the following econciliations:

he Grandioso Company had poor internal control over its cash transactions. Facts about its cash position at lovember 30, 2020 were as follows: he cash book showed a balance of P 189,016.20, which included undeposited receipts. A credit of P 1,000 n the bank's records did not appear on the books of the company. The balance per bank statement was P 55,500. Outstanding checks were: # 62 for P 1,162.50, #183 for P 1,500, #284 for P 2,532.50, #8621 for P ,907.10, #8623 for P 2,068, and #8632 for P 1,452.80. he cashier abstracted all undeposited receipts in excess of P 37,944.10 and prepared the following econciliations:

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 20RQSC
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Preparation of Corrected Bank Reconciliation The Grandioso Company had poor internal control over its cash transactions. Facts about its cash position at November 30, 2020 were as follows: The cash book showed a balance of P 189,016.20, which included undeposited receipts. A credit of P 1,000 on the bank's records did not appear on the books of the company. The balance per bank statement was P 155,500. Outstanding checks were: # 62 for P 1,162.50, #183 for P 1,500, #284 for P 2,532.50, #8621 for P 1,907.10, #8623 for P 2,068, and #8632 for P 1,452.80. The cashier abstracted all undeposited receipts in excess of P 37,944.10 and prepared the following reconciliations: 189,016.20 Balance per books, November 30, 2020 Add: Outstanding Checks No. 8321 1,907.10 8623 2,068.00 1,452.80 No. No. 8632 4,427.90 Total 193,444.10 Less: Undeposited Receipts Balance per bank, November 30, 2020 37,944.10 155,500.00 Less:Unrecorded credit 1,000.00 154,500.00 True cash, November 30, 2020 Required: Prepare a supporting schedule showing how much the cashier abstracted.
Transcribed Image Text:Preparation of Corrected Bank Reconciliation The Grandioso Company had poor internal control over its cash transactions. Facts about its cash position at November 30, 2020 were as follows: The cash book showed a balance of P 189,016.20, which included undeposited receipts. A credit of P 1,000 on the bank's records did not appear on the books of the company. The balance per bank statement was P 155,500. Outstanding checks were: # 62 for P 1,162.50, #183 for P 1,500, #284 for P 2,532.50, #8621 for P 1,907.10, #8623 for P 2,068, and #8632 for P 1,452.80. The cashier abstracted all undeposited receipts in excess of P 37,944.10 and prepared the following reconciliations: 189,016.20 Balance per books, November 30, 2020 Add: Outstanding Checks No. 8321 1,907.10 8623 2,068.00 1,452.80 No. No. 8632 4,427.90 Total 193,444.10 Less: Undeposited Receipts Balance per bank, November 30, 2020 37,944.10 155,500.00 Less:Unrecorded credit 1,000.00 154,500.00 True cash, November 30, 2020 Required: Prepare a supporting schedule showing how much the cashier abstracted.
SOLUTION: GRANDIOSO CCOMPANY Bank Reconciliation As of November 30, 2020 Bank Book Balances, unadjusted Adjustments: Deposit in Transit Outstanding Checks: Amount No. No. No. No. No. No. Unrecorded credits Total balances 0.00 0.00 Discrepancy (Shortage) Balance per bank, adjusted 0.00 0.00 0.00
Transcribed Image Text:SOLUTION: GRANDIOSO CCOMPANY Bank Reconciliation As of November 30, 2020 Bank Book Balances, unadjusted Adjustments: Deposit in Transit Outstanding Checks: Amount No. No. No. No. No. No. Unrecorded credits Total balances 0.00 0.00 Discrepancy (Shortage) Balance per bank, adjusted 0.00 0.00 0.00
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