Reference no: EM132749211

Question: Genus Company is preparing its 2016 financial statements, the accounting period ends December 31. The following items , related to cash are under consideration . As auditor you will be asked to indicate how each item should be reported in the Statement of Financial Position and explain the basis of your responses. ( 2 Points Each)

a. A P 1,000,000 check received from a customer, dated February 1, 2017 is on hand

b. A customer's check was included in the December 20 deposit . It was returned by the bank stamped NSF. No entry has been made by Genus to record the return.

c. A cashier's check of P 200 payable to Genu Company is in the cash drawer dated December 29,

d. Three checks dated December 31, 2016 , totaling P 46,500 payable to vendors who have sold merchandise to Genus Company on account were not mailed as at December 31, 2016. They have not been recorded as payment in the check register and the ledger.

e. Prior to December 30, Genus Company left a note that matures December 31, 2016 with its bank for collection. The note amount is P 200,000 and bears an interest of 9% having been outstanding for three months. Genus has not heard from the bank about the collection but is confident of a favorable outcome because of the high credit rating of the maker of the note. The Company plans to include the P 200,000 plus interest as cash balance as at December 31, 2016.