Reference no: EM132654729

Question - Your audit of the cash account of June copr., disclosed the following information:

a. Cash in bank balance per books, December 31, 2012 35,000.

b. Bank statement balance, December 31, 2012 60,000.

c. Note collected by bank in December (principal plus interest of 800, Less collection fee of 200) 27,600.

d. Debit memo for a checkbook ?

e. Deposit in transit December 31, 2012 15,200

f. Transposition error made by bank in recording deposits of December 28:

Correct amount 45,000

Recorded as 54,000 9,000

g. Erroneous bank debit 26,700

h. Included in the Cash in Bank account is petty cash fund of 10,000.

Your count on December 31, 2012 revealed the following fund items:

Currency and coins 3,000

Supplies 2,400

Transportation 100

IOUs 4,000 9,500

i. Erroneous bank credit 11,000

j. Outstanding checks (including a certified check of 10,000) 39,400

Required -

1. What is the principal amount of the note collected by bank in December?

2. What is the adjusted cash in bank balance at December 31, 2012?

3. The cost of checkbook is?

4. What is the amount of petty cash shortage at December 31, 2012?

5. What is the adjusted petty cash balance?