In connection with your audit of the financial statements of Reyes Corporation for the year ended December 31, 2006, you conducted a surprise count of the company's petty cash and undeposited collections at 9:10 am on January 3, 2007. You count disclosed the following:

Bills and counts

PIOO.OO 5 pieces	PI.OO	205 pieces
50.00 40 pieces	0.50	162 pieces
20.00 35 pieces 10.00 27 pieces Postage stamps (unused) - P365 Checks	0.25	32 pieces
Dec. 30 Cash		Custodian	P 1,200
Dec. 30 Reyes Corp.		Karren, Inc.	14,000
Dec. 31 Reyes Corp.		Sheryl, sales manager	1.680
Dec. 31 Reyes Corp.		Victor Corp.	17,800
Dec. 31 Reyes Corp.		Ma. Karen, Inc.	8,300
Dec. 31 Merry Corp.		Reyes Corp.	27,000
(not endorsed) Unreimbursed vouchers
		Description	Amount
Dec. 23 Sheryl, sales mgr.		Advance for trip	P 7,000
Dec. 28 Post Office		Postage stamps	1,620
Dec. 29 Messengers		Transportation	150
Dec. 29 Ace, Inc.		Computer repair	800

Other items found inside the cash box:

Additional Information.'

I. The custodian is not authorized to cash checks.

2. The last official receipt included in the deposit on December 30 is No. 4351 and the last official receipt issued for the current year is No. 4355. The following official receipts are all dated December 31, 2006.

Form of Poyment

4352	p 13,600	Cash
4353	17,800	Check
4354	3,600	Cash
4355	8,300	Check

3. The petty cash balance per general ledger is PIO,OOO. The last replenishment of the fund was made on December 22, 2006.

Questions

1. REYES CORPORATION'S cash shortage/overage at December 31, 2006 is:

   1. P 61/166 short c. P 34,166 over

   2. P 20,166 short d. P 22,514 over

2. The adjusted petty cash balance of REYES CORPORATION at December 31, 2006 is:

a. p 4,964 b. P 2,110 c. P 1,200 d. P430

3. The undeposited sales/collection of REYES CORPORATION at December 31, 2006 is:

a. P 66,480 b. P64,800 c. P 57i300 d. P43,300

Answer rating: 100% (QA)

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