Reference no: EM132642942

Question - You obtained the following information on the current account of Paraq Company during your examination of its financial statements for the year ended December 31, 2010.

The bank statement on November 30, 2010 showed a balance of 306,000. Among the bank credits in November was customer's note for 100,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to 1,200 and a 40,000 check which was charged by the bank in error against Paraq company account. Also in November you ascertained that there were deposits in transit amounting to 80,000 and outstanding checks totaling 170,000.

The bank statement for the month of December showed total credit of 416,000 and total charges of 204,000. The company's books for December showed total debits of 735,600, total credits of 407,200 and a balance of 485,600. Bank debit memos for December were: No. 121 for service charges, 1,600 and no. 122 on a customer's returned check marked "refer to drawer" for 24,000.

On December 31, 2010, the company placed with the bank a customer's promissory note with a face value of 120,000 for collection. The company treated this note as part of its receipts although the bank was able to collect on the note only in January 2011.

A check for 3,960 was recorded in the company cash payments books in December as 39,600.

Questions - Based on the application of the necessary audit procedures and application of the above data, you are to provide the answers to the following:

1. How much is the undeposited collections as of December 31, 2010?

2. How much is the outstanding checks as of December 31, 2010?

3. How much is the adjusted cash balance as of November 30, 2010?

4. How much is the adjusted bank receipts for December?

5. How much is the adjusted book disbursements for December?

6. How much is the adjusted cash balance as of December 31, 2010?