Reference no: EM132700560
Question - The following information was made available to you by MOON CORP. in relation to your audit of its cash account as of and for the period ended December 31, 2019:
Total bank credits for December was at 900,000 while total bank debits was at 1,100,000.
Total book credits for December was at 1,020,000 while total book debits was at 1,060,000.
Deposit in transit as of November 30 was at 220,000.
Outstanding checks as of December 31 was at 190,000, 25,000 of which has been certified by the bank.
Proceeds of a bank loan in November was at 200,000. It was directly credited by the bank to the company's account in November, the same was recorded only in the books in December.
Note receivable collection by the bank in December on the company's behalf was at 180,000.
A November NSF check amounting to 80,000 was received from the bank along with the November bank statement and was recorded in December. Another NSF check amounting to 50,000 was received in December, cleared with the customer, and redeposited to the bank in December. No entry was made by the client on either the receipt and redeposit of the check. Another NSF check amounting to 70,000 was received from the bank along with the December bank statement, the same was not yet recorded by year-end.
A 100,000 collection check in December was recorded in the books at 10,000.
A 5,000 disbursement check in December was recorded in the books at 50,000. The error was discovered in December and was corrected also in December.
A November bank charge error amounting to 15,000 was corrected by the bank in December.
A 40,000 December receipt of MOON CORP. was credited to the company by the bank in error.
The November bank statement shows a balance of 485,000 while the December general ledger shows a balance of 390,000.
Required -
a. Compute the unadjusted balance per books as of November 30?
b. Compute the correct cash in bank balance as of November 30?
c. Compute the deposit in transit as of December 31?
d. Compute the outstanding checks as of November 30?
e. Compute the correct cash in bank balance as of December 31?