Reference no: EM132787217

Problem - On January 10, 2020, you started the audit of the financial records of the Del Pilar Company for the year ended December 31, 2019. From your investigation, you discovered the following:

1. The bookkeeper also acts as the cashier. On December 31, 2019, the bookkeeper's year-end cash reconciliation contains the following items.

Cash per ledger, 12-31-19 P736,800

Cash per bank, 12-31-19 778,200

Outstanding checks 62,640

Joe Co. check charge by bank in error 12-20-19; corrected by bank on 1-5-20 1,800

Cash in transit, credited by bank on 1-2-10 8,640

2. The cash account balances per ledger as of 12-31-19 were: Cash - P736,800; petty cash - P1,800.

3. The count of the cash on hand at the close of business on January 10, 2020, including the petty cash, was as follows:

Currency and coin P4,620

Expense vouchers 240

Employees' IOU's dated 1-5-20 660

Customers' checks in payment of account 3,480

P9,000

4. From January 2, 2020 to January 10, 2020, the date of your cash count, total cash receipts appearing in the cash records were P103,200. According to the bank statement for the period from January 2, 2020 to January 10, 2020, total deposits were P91,200.

5. On July 5, 2019, cash of P4,800 was received from an account customer; the Allowance for Doubtful Accounts was charged and Accounts Receivable credited.

6. On December 5, 2019, cash of P3,600 was received from an account customer; Inventory was charged and Accounts Receivable credited.

7. Cash of P8,760 received during 2019 was not recorded.

8. Checks received from customers from January 2, 2020 to January 10, 2020 totaling P5,040, were not recorded but were deposited in bank.

9. On July 1, 2019, the bank refunded interest of P240 because a note of the Del Pilar Company was paid before maturity. No entry had been made for the refund.

10. In the cashier's petty cash, there were receipts for collections from customers on January 9, 2020, totaling P10,200; these were unrecorded and undeposited.

11. In the outstanding checks, there is one for P600 made payable to a trade creditor; investigation shows that this check had been returned by the creditor on June 14, 2019 and a new check for P1,200 was issued in its place; the original check for P600 was made in error as to amount.

Required -

1. What is the correct bank balance as of December 31, 2019?

2. What is the cash shortage as of December 31, 2019?

3. What is the cash shortage for the period January 1 to 10, 2020?