Compute the adjusted petty cash balance

Assignment Help Accounting Basics

Reference no: EM132669581

Petty Cash

In your process of preparing the financial statements of Kurt Co., Inc., you review the books and records of Kurt Co., Inc. as of December 31, 2014. On January 4, 2015, at 1:30 pm, you began counting the petty cash fund and other cash that might be on hand with the cashier, Miss Fei Redoblado, and you found bank notes, coins, checks, vouchers, and so forth as disclosed below:

BILLS: 5 twenties

COINS: P0.25 pieces - 3 rolls and 22 loose (50 pieces to a roll)

P0.10 pieces - 8 rolls and 20 loose (50 pieces to a roll)

CHECKS:

Maker Date Payee Amount

Kurt Redoblado, Manager December 24, 2014 Kurt Co., Inc. 2,000.00

Fei Redoblado, petty cashier December 22, 2014 Kurt Co., Inc. 3,000.00

IOU's:

Denis Keith Madelar, clerk October 21, 2014 2,500.00

J. Mayores, messenger December 20, 2014 1,500.00

RJ Redoblado, accountant December 23, 2014 1,000.00

UNREPLENISHED PETTY CASH VOUCHERS:

Payee Date Account Charged Amount

B A L December 15, 2014 Freight in 1,365.00

D. Madelar, janitor December 17, 2014 Advances to employees 250.00

Zuniga & Co., Inc. December 18, 2014 Supplies 1,125.00

PhilPosts (stamps) December 20, 2014 Supplies 2,000.00

J. Mayores, messenger December 21, 2014 Miscellaneous expense 1,020.00

Jose Trading Co. December 21, 2014 Supplies 835.00

You also found that the petty cash fund amounted to P35,000.

Further investigation also disclosed that the cash sales from January 2, 2015 amounted to P55,540.00 as shown by the sales records while the Cash Receipts Books and the Bank Deposit Slip showed that only P45,540 was deposited in the bank on January 3, 2015. You also found that the pay envelops of the following employees had been opened and the money removed. Each envelop was marked "Unclaimed" and opened.

J. Armenta - week ended December 30, 2014 2,465.00

T. Galang - week ended December 23, 2014 2,325.00

Problem 1. Calculate the total cash count.

Problem 2. Compute the adjusted petty cash balance.

Problem 3. Compute the shortage from petty cash, if any.

Reference no: EM132669581

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