Reference no: EM133134666

Question - As part of your engagement to audit the financial statement of Janong Company for the year ended December 31, 2021, you were able to gather the following information:

Janong Company started operation on October 2, 2021 with Janong investing P240,000 cash. Monthly bank reconciliation statements have not been prepared; however, bank statements for October, November, and December were made available to you. The bank statement in December , 2021 showed on ending balance of P101,000.

Examination of the paid checks disclosed that checks totalling P9,000 were issued by the company in December , 2021, and were presented for payment only in January, 2022. Cash count of the cashier's accountability amounted to P16,400. You were told by the cashier that P10,000 of these, in checks , were cash sales on December 29, 2021, deposited on January 3, 2022. The balance , in currency and coins , represents petty cash fund.

Additional data :

1. Accounts receivable subsidiary ledgers had a total balance of P140,000 at December 31, 2021.

2. Merchandise inventory at December 31, 2021 amounted to P60,000.

3. Supplier's unpaid invoices for merchandise totalled P120,000.

4. The bank statement in October showed a bank credit for P200,000, dated October 2, 2021 representing bank loan proceeds for 120-day , discounted bank note. P140,000 of this loan was paid by check in December 2021.

5. Operating expenses paid during the period totalled P180,000; while merchandise purchases amounted to P480,000.

6. The gross profit rate is 25% based on sales.

Required - Based on the above data and your audit, answer the following:

1. How much is the adjusted balance per bank as of December 31, 2021?

2. How much is the total cash payment for merchandise purchased in 2021?

3. How much is the cost of goods sold in 2021?

4. How much is the total sales in 2021?

5. How much is the amount of cash shortage as of December 31, 2021?