ap1 comprehensive problem

AUDITING PROBLEMS 1

COMPREHENSIVE PROBLEM

SRV & Co. CPAs accepted a new client, Global Home Depot, Inc., on November 2014. Your Senior

Auditor assigned you as the Audit Clerk for the new engagement for the calendar year 2014. On the

same month, you visited their principal address to obtain an understanding of the nature of their

business.

Global Home Depot, Inc. was incorporated in the Philippines and registered with the Philippine Securities and

Exchange Commission (SEC) on March 12, 2010. The Company is primarily engaged in the business of

retailing, merchandising, buying, selling, marketing, trading, or otherwise dealing household and builder

hardware.

Merchandising industry makes products in retail outlets available to customers, primarily by stocking shelves

and displays. Household and builder hardware product merchandisers occupy an intermediate market between

the manufacturers and the end users. The manufacturers typically focus on producing high volumes of their

product. The merchandisers purchase these finished products from the manufacturers. They distribute these

products through retail. This is very common because it somehow eliminates the manufacturers’ burden to

further market their product.

The Company’s main line of business is purchasing and selling household and builder hardware like keys,

locks, hinges, chains, tools, machine parts, doors, windows, bathrooms, etc. These are used by homeowners

and builders for residential and commercial purposes. The entity has several suppliers for the merchandise

within and outside Cebu and they are normally sold to walk-in customers, to the City Government of Cebu and

Mandaue, and to regular customers who are usually construction companies.

The registered business address of the Company is Ground Floor, The Columbia Tower, A.S. Fortuna Street

Mandaue City, Cebu (see attachment 1). The Company is situated near the national road which is very

accessible to the public. The Company location is also accessible to trucks and public utility vehicles. The

Company is under a lease agreement with The Columbia Tower Real Estate, Inc. for the space used by the

Company.

The Company is controlled by Ms. Cynthia D. Chungunco, who owns 78.21% of the Company’s outstanding

shares. The remaining 21.79% of the shares are publicly held. The Company has its primary listing on the

Philippine Stock Exchange. As of December 31, 2012 and 2013, the Company has 24 and 26 equity holders,

respectively (see attachment 2 for the organizational structure).

The Company has an internally-generated accounting system but manually processes pre-numbered source

documents. According to a survey, companies that do better than industry averages tend to use and

understand specialized computer software tools to manage specific aspects of merchandising. It has identified

forecasting as the most important tool. The system helps predict what goods customers might want and

stocking patterns to satisfy customer demand while minimizing the amount of capital invested in excess

inventory. Seventy-five percent of the retailers surveyed said that retail forecasting is extremely important to

financial success. In the past, forecasting systems were largely seen as supply chain management tools,

where the focus was on reducing operational costs. Now such systems and techniques have become

important to expand sales opportunities, moving from a strictly bottom-line focus to a top-line one. Almost

equally as important as demand forecasting is customer analytics. One cannot create a good demand forecast

without understanding the customers and what they might want.

The Company approximately has 43 regular customers, an average of 300 walk-in customers per day, and the

City Government of Cebu and Mandaue. The Company negotiates sales orders with the majority of their

customers. The Company does not have any long-term contract with any customer. Because of the nature the

Company’s products and the short lead time order cycle, backlog is not a significant factor of the business. The

Company believes that substantially all of the orders existing as of December 31 will be shipped prior to the

end of the first quarter of the next year. In general, the Company competes in the home and builder hardware

products with the other companies in within Cebu and Mandaue City. A few of the Company’s competitors may

be larger, have greater financial resources or have less financial leverage than the Company does. As a result,

the competitors may be better positioned to respond to any downward pricing pressure or other adverse

economic or industry conditions or to identify and acquire companies or product lines compatible with their

business.

The primary goal of the company is to sustain itself in the long run of competition and to increase its market

share in the future. The management continuously gives good service to its customers by availing quality

products from its suppliers. It hopes that by putting up branches on strategic locations, it will be able to

increase profitability and at the same time satisfying the needs of the customers. It is currently advertising on

media, specifically on radio stations and print, to make the business known to the public. As a corporate social

responsibility, it actively participates on the preservation of the natural environment. The management says

that their strategies do not contribute much to the overall success of the Company and they admit that they are

not that aggressive in terms of promotion.

The Company sees itself as a growing entity. The management believes that it will be able to expand its

operations especially because they are yet starting. Ms. Chungunco is pressuring the management to expand

sooner in order to also get fully the market share for the City Government of Cebu and because the opportunity

revenue is high.

As of the date, the company has no investments in associate, subsidiary or joint venture. For now, the

management has no plans of entering into acquisition of companies under its name or disposing its equity

interest. However, the company has planned initially in 2013 to open a branch in Cebu City in order to get a

wider share in the market. The Company has also planned to obtain loans from the bank to finance its

expansion plans.

The preparation of the financial statements in conformity with accounting principles generally accepted in the

Philippines requires the management of the Company to make decisions based upon estimates, assumptions,

and factors it considers relevant to the circumstances. Such decisions include the selection of applicable

principles and the use of judgment in their application, the results of which could differ from those anticipated.

The Company has considered the following as their most critical accounting policies:

1. Accounts receivable valuation

2. Inventory Valuation

3. Revenue recognition

The management reviews the estimates on a regular basis but believes that these estimates are reasonable,

but actual results could differ from these estimates.

Valuation of accounts receivable

The accounts receivable of the Company represent those amounts that have been billed to the Company’s

regular customers and to the City Government of Cebu and Mandaue but not yet collected. The Company

records an allowance for doubtful accounts based on the portion of those accounts receivable that the

Company believes are potentially uncollectible based on various factors, including historical experience and

creditworthiness of customers. If the financial condition of customers were to deteriorate, resulting in

impairment of their ability to make payments, additional allowances may be required. Changes in judgments on

these factors could impact the timing of costs recognized.

Valuation of inventories

The company states their inventories at the lower of cost or market. The Company determines the cost basis

their inventory on a first-in-first-out basis using actual costs. Changes in product demand and their customer

base may affect the value of inventory on hand, which may require provisions for obsolescence.

Revenue recognition

The Company recognizes revenue at the point of sale. The Company treats sales returns and allowances as

reductions to sales.

ORGANIZATIONAL CHART

BOARD OF DIRECTORS

CYNTHIA D. CHUNGUNCO

President

JOHN F. GOGeneral Manager

MANOLO F. CHUA

Purchaser

GERRY S. VELORA

Inventory Clerk

MIMI L. GARCIA

Sales Manager

CHARLOTE R. AGUILARChief Accountant

CHRISTINE D. LAPINID

Cashier

MARLON S. YUAccountant 1

ANNIE T. DALON

Accountant 2

ARMANDO G. SUICOSupport Head

GEOGRAPHICAL LOCATION

Prior to the end of November 2014, you went back to the Global Home Depot, Inc. to examine their

control manual in order for you to document your understanding of the design of the internal control

and assess the control risk.

Purchasing / Disbursement Cycle

Whenever a certain inventory level goes below the reorder point, the Inventory Clerk will report to the

Purchaser for requisitioning. The Purchaser will determine the supplier and will send copy of the purchase

order to the supplier (via e-mail or by fax), to the Accounting Office and to the one who will receive the goods

(a copy with no details as to the quantity). Upon receipt of the goods, the one who receives will count them and

will notify the Accounting Office of such receipt by providing a receiving report. The Accounting Office will

compare the receiving report with the purchase order and the supplier’s invoice, and will record the related

liability. The Accounting Office will send the necessary documents for payment to the President. The President

will review the accuracy and authenticity of the documents prior to the approval of the vouchers for payment.

Then the check will be prepared and mailed to the supplier and the source documents will be stamped “PAID.”

The Accounting Office will then update the Accounts Payable general and subsidiary ledger.

Revenue / Receipts Cycle

Credit will never be granted to walk-in customers. For regular customers and the City Government of Cebu and

Mandaue, the approval of the Sales Manager must be obtained before credit sales will be granted. Copies of

the approved sales order will be sent to the warehouse (c/o the Inventory Clerk) and to the Accounting Office.

The Inventory Clerk will move out the inventory to be shipped from the warehouse and will update the

perpetual inventory records. The goods will be sent to the carrier and shall be evidenced by a bill of lading. The

Accounting Office will compare the bill of lading with the sales order and will prepare the invoice to be sent to

the customer. All collections shall be made by means of check. One accounting staff shall receive the check

and will immediately send such to the President for the necessary endorsement. The cashier will prepare the

deposit slip of the collections for the day. Another accounting staff will update the general and subsidiary

ledger of Accounts Receivable. The President will be the approving officer for any write-off of receivables.

On the first week of December 2014, you went back to the Global Home Depot, Inc. after documenting

your understanding of the design of the internal control and assessing the control risk. For two weeks,

you performed a test on the following controls:

A. Disbursement Cycle

a. Purchase orders were properly authorized.

b. Goods were received and reconciled to the purchase order.

c. The amounts appearing on the checks made are the same with the supplier’s invoice.

d. Checks were signed by authorized persons.

e. Supporting documents are cancelled.

B. Receipts Cycle

a. Sales were properly authorized.

b. Sales invoice amounts are the same with the approved sales order.

c. Collection receipt amounts are the same with the billings per sales invoice.

d. Collections for the day were deposited to the bank on the same day.

You randomly selected 5 purchase transactions for nine-month period ending September 30, 2014 and

performed a walkthrough on these transactions. You asked the client to provide you all the source documents

for these transactions and any cancelled checks made as payments to the suppliers (see attachments).

You also randomly selected 5 sales transactions for nine-month period ending September 30, 2014 and asked

the client to provide you the source documents to substantiate the sales (see attachments).

You obtained a sample of a deposit slip to ascertain that collections are deposited on the same day they are

received.

DISBURSEMENTS TEST OF CONTROLS

Purchase Order No. :

From:

Freight Charge:

TOTALS:

RECEIVED

By: Date Received:

Abrasive blades

165.00

85.00

49,500.00

17,000.00

GLOBAL HOME DEPOT, INC.

RECEIVING REPORT

00-2-134

UNIVERSAL HOME BUILDERS

Angle Iron

GERRY S. VELORA 02/18/14

QUANTITY DESCRIPTION PRICE AMOUNT

300

200

66,500.00

VENDOR ` SHIP TO

Item No. Amount

49,500.00

17,000.00

66,500.00

SPECIAL INSTRUCTIONS


Date

MANOLO F. CHUA 02/15/14

Approved by Date

HJR Builders Global Home Depot

GLOBAL HOME DEPOT, INC.Ground Floor, The Columbia Tower, PURCHASE REQUISITION

A.S. Fortuna Street, Mandaue City, Cebu No. 000-2-45986

Requisition Date Required by Date Instructions Budget Code

02/15/14

Quantity Description G.L. Account No. Unit Price

300 Angle Iron 165.00

Requested by

TOTAL AMOUNT

85.00200 Abrasive blades

VENDOR ` SHIP TO

Terms

Item No. Amount

49,500.00

17,000.00

66,500.00

OTHER INSTRUCTIONS

MANOLO F. CHUA

Purchasing Officer

Date:

Budget Code

02/16/14

Requisition Date F.O.B.Date of Order Required by Date

02/15/14

02/16/14

HJR Builders

TOTAL AMOUNT

Global Home Depot

Angle Iron

Abrasive blades

Quantity Description Unit Price


Ground Floor, The Columbia Tower, PURCHASE ORDERA.S. Fortuna Street, Mandaue City, Cebu NO. 00-2-134

300

200

165.00

85.00

Ship To: Bill To:

GLOBAL HOME DEPOT, INC. GLOBAL HOME DEPOT, INC.

Ground Floor, The Columbia Tower, Ground Floor, The Columbia Tower,

A.S. Fortuna Street, Mandaue City, Cebu A.S. Fortuna Street, Mandaue City, Cebu

P.O. NUMBER

00-2-134

Amount

49,500.00

17,000.00

SUB TOTAL 59,375.00

TAX 7,125.00

TOTAL DUE 66,500.00

HJR BUILDERSINVOICE

Osmena Blvd., Cebu City

(032) 567-7890 INVOICE NO. 454589-54445


DATE:02/18/2014

SALESPERSON DATE SHIPPED SHIPPED VIA F.O.B. POINT TERMS


200 Abrasive blades 85.00

VENDOR ` SHIP TO

Item No. Amount

3,000.00

7,500.00

30,000.00

40,500.00



Date


Approved by Date

25.00

1,500.00

300

20

Rebar Clutter

Plastic high chair

Requested by

TOTAL AMOUNT


100 Float Pans 30.00


04/26/14

SOUTH HOME DEPOT Global Home Depot



VENDOR ` SHIP TO

Terms

Item No. Amount

3,000.00

7,500.00

30,000.00

40,500.00

OTHER INSTRUCTIONS

MANOLO F. CHUA

Purchasing Officer

Date:

100

300

20

30.00

25.00

1500.00Plastic high chair



04/27/14

SOUTH HOME DEPOT

TOTAL AMOUNT

Global Home Depot

Float Pans

Rebar Clutter


Budget Code

04/27/14


04/26/14


From:

Freight Charge:

TOTALS:

RECEIVED

By: Date Received:GERRY S. VELORA 04/28/14


100

300

20

40,500.00


RECEIVING REPORT

00-4-134


Float Pans

Plastic high chair 30,000.00

Rebar Clutter

30.00

25.00

1500.00

3,000.00

7,500.00

Ship To: Bill To:




P.O. NUMBER

00-4-134

Amount

3,000.00

7,500.00

30,000.00

SUB TOTAL 36,160.71

TAX 4,339.29

TOTAL DUE 40,500.00

300

20

Rebar Clutter

Plastic high chair

25.00


1,500.00


DATE:04/30/2014


SOUTH HOME DEPOTINVOICE

Poblacion, Talisay, Cebu

(032) 431-5609 INVOICE NO. 3457-441952

VENDOR ` SHIP TO

Item No. Amount

12,000.00

12,000.00

2,500.00

26,500.00



Date


Approved by Date

UNIVERSAL HOME BUILDERS Global Home Depot




05/10/14


200 Felker Diamond Blades 60.00

Requested by

TOTAL AMOUNT

40.00

50.00

300

50

Abrasive Blades

Cup Stones

VENDOR ` SHIP TO

Terms

Item No. Amount

12,000.00

12,000.00

2,500.00

26,500.00

OTHER INSTRUCTIONS

MANOLO F. CHUA

Purchasing Officer

Date:

Budget Code

05/11/14


05/10/14

05/11/14


TOTAL AMOUNT

Global Home Depot

Felker Diamond Blades

Abrasive Blades




200

300

50

60.00

40.00

50.00Cup Stones


From:

Freight Charge:

TOTALS:

RECEIVED

By: Date Received:

Cup Stones 2,500.00

Abrasive Blades

60.00

40.00

50.00

12,000.00

12,000.00


RECEIVING REPORT

00-5-131


Felker Diamond Blades



200

300

50

26,500.00

Ship To: Bill To:




P.O. NUMBER

00-5-131

Amount

12,000.00

12,000.00

2,500.00

SUB TOTAL 23,660.71

TAX 2,839.29

TOTAL DUE 26,500.00

UNIVERSAL HOME BUILDERSINVOICE

Borromeo St., Cebu City

(032) 555-5555 INVOICE NO. 852122-12455


DATE:05/15/2014


200 Felker Diamond Blades 60.00

50.00

300

50

Abrasive Blades

Cup Stones

40.00

VENDOR ` SHIP TO

Item No. Amount

4,500.00

6,250.00

67,500.00

78,250.00



Date


Approved by Date

SOUTH HOME DEPOT Global Home Depot




08/03/14



Requested by

TOTAL AMOUNT

25.00

1,500.00

250

45

Rebar Clutter

Plastic high chair

VENDOR ` SHIP TO

Terms

Item No. Amount

4,500.00

6,250.00

67,500.00

78,250.00

OTHER INSTRUCTIONS

MANOLO F. CHUA

Purchasing Officer

Date:

Budget Code

08/04/14


08/03/14

08/04/14

SOUTH HOME DEPOT

TOTAL AMOUNT

Global Home Depot

Float Pans

Rebar Clutter




150

250

45

30.00

25.00

1500.00Plastic high chair


From:

Freight Charge:

TOTALS:

RECEIVED

By: Date Received:

Plastic high chair 67,500.00

Rebar Clutter

30.00

25.00

1500.00

4,500.00

6,250.00


RECEIVING REPORT

00-8-831


Float Pans



150

250

45

78,250.00

Ship To: Bill To:




P.O. NUMBER

00-8-831

Amount

4,500.00

6,250.00

67,500.00

SUB TOTAL 69,866.07

TAX 8,383.93

TOTAL DUE 78,250.00

SOUTH HOME DEPOTINVOICE

Poblacion, Talisay, Cebu

(032) 431-5609 INVOICE NO. 852122-12411


DATE:09/09/2014



1,500.00

250

45

Rebar Clutter

Plastic high chair

25.00

VENDOR ` SHIP TO

Item No. Amount

16,500.00

17,000.00

33,500.00



Date


Approved by Date

HJR BUILDERS Global Home Depot




09/24/14



Requested by

TOTAL AMOUNT

85.00 200 Abrasive blades

VENDOR ` SHIP TO

Terms

Item No. Amount

16,500.00

17,000.00

33,500.00

OTHER INSTRUCTIONS

MANOLO F. CHUA

Purchasing Officer

Date:

Budget Code

09/25/14


09/24/14

09/25/14

HJR BUILDERS

TOTAL AMOUNT

Global Home Depot

Angle Iron

Abrasive blades




100

200

165.00

85.00


From:

Freight Charge:

TOTALS:

RECEIVED

By: Date Received:

Abrasive blades

165.00

85.00

16,500.00

17,000.00


RECEIVING REPORT

00-9-241


Angle Iron



100

200

33,500.00

Ship To: Bill To:




P.O. NUMBER

00-9-241

Amount

16,500.00

17,000.00

SUB TOTAL 29,910.71

TAX 3,589.29

TOTAL DUE 33,500.00

HJR BUILDERSINVOICE


(032) 567-7890 INVOICE NO. 454589-54434


DATE:09/09/2014



200 Abrasive blades 85.00

RECEIPTS TEST OF CONTROLS

Customer Name Date Phone

Address

City State ZIP

Ship to Address

City State ZIP

Special Instructions

Item Number

Order Taken by

Labor

Total Due 15,000.00

Gross Total 13,392.86

Tax 1,607.14

Shipping

Bathroom Sink 215 27.91 6,000.00

Description Quantity Unit Price Extended Price

Tissue Holder 200 45.00 9,000.00

Sales OrderCebu City Government 05/26/14

Ground Floor, The Columbia Tower,

A.S. Fortuna Street, Mandaue City, Cebu

No. 00005284

Name Name

Company

Street

Date 05/28/14 City, State

Dept Acct Zip Code

Number Weight

of (Subject

Packages to Change)

Kind of Package

Serial NumbersDescription of Articles

Special Marks, and Exceptions

Tissue Holder

Bathroom Sink

GLOBAL HOME DEPOT, INC. Bill of Lading

FROM TO

GLOBAL HOME DEPOT, INC. Cebu City Government

Sold To: Bill To:

Quantity Amount

200 9,000.00

215 6,000.00

SUB TOTAL 13,392.86

TAX 1,607.14

TOTAL DUE 15,000.00

03/21/14

Description Unit Price

Tissue Holder

Bathroom Sink

45.00

27.91

Customer Cebu City Government

Date Terms P.O. Number

GLOBAL HOME DEPOT, INC. INVOICEGround Floor, The Columbia Tower, No. 10005284


In payment of Invoice(s)

No.

10005284 P 15,000.00

OFFICIAL RECEIPT NO. 042-114

Date 04/21/14

Received from

TOTAL P 15,000.00 Address

CASH 15,000.00 the sum of

BANK/CHECK NO (P 15,000.00 )

SUB-TOTAL P 13,392.86

TAX 1,607.14

TOTAL DUE P 15,000.00

Permit No. RD2-02-093 NV 2-3-99

Printed by: Lacosta Printing Press

Tagudin, Cebu City

Christine D. Lapinid

Amount

Signature

Fifteen thousand pesos only

in full/partial of

merchandise ordered.

GLOBAL HOME DEPOT, INC.50 Bklts. 001.2,500

Cebu City Government

GLOBAL HOME DEPOT, INC.Ground Floor, The Columbia Tower,


TIN - 020-156-885-736 NV


Address

City State ZIP

Ship to Address

City State ZIP


Item Number

Order Taken by

Sales OrderMandaue City 01/15/14


Angle Iron (Rolled Angles) 300 20.00 6,000.00

Angle Iron (Flat Angles) 250 16.00 4,000.00


Tax 1,071.43

Shipping

Labor

Total Due 10,000.00



No. 00001291

Name Name

Company

Street


Dept Acct Zip Code

Number Weight

of (Subject

Packages to Change)


FROM TO

GLOBAL HOME DEPOT, INC. Mandaue City

Kind of Package



Angle Iron (Rolled Angles)

Angle Iron (Flat Angles)

Sold To: Bill To:

Quantity Amount

300 6,000.00

250 4,000.00

SUB TOTAL 8,928.57

TAX 1,071.43

TOTAL DUE 10,000.00

Customer Mandaue City



Angle Iron (Rolled Angles)

Angle Iron (Flat Angles)

20.00

16.00

01/19/14


No.

10001291 P 10,000.00


Date 02/19/14

Received from





TAX 1,071.43


Permit No. RD2-02-093 NV 2-3-99

Printed by: Lacosta Printing Press Christine D. Lapinid

Tagudin, Cebu City Signature

Ten thousand pesos only

in full/partial of


50 Bklts. 001.2,500 GLOBAL HOME DEPOT, INC.

GLOBAL HOME DEPOT, INC.Amount Ground Floor, The Columbia Tower,


TIN - 020-156-885-736 NV

Mandaue City


Address

City State ZIP

Ship to Address

City State ZIP


Item Number

Order Taken by

Sales OrderGlobal Holidays 06/03/14


Backer Rod - Poli Void 193 77.72 15,000.00

Backer Rod - Denver Foam 209 47.85 10,000.00


Tax 2,678.57

Shipping

Labor

Total Due 25,000.00



No. 00006054

Name Name

Company

Street


Dept Acct Zip Code

Number Weight

of (Subject

Packages to Change)


FROM TO

GLOBAL HOME DEPOT, INC. Global Holidays

Kind of Package



Backer Rod - Poli Void

Backer Rod - Denver Foam

Sold To: Bill To:

Quantity Amount

193 15,000.00

209 10,000.00

SUB TOTAL 22,321.43

TAX 2,678.57

TOTAL DUE 25,000.00



Customer Global Holidays



Backer Rod - Poli Void

Backer Rod - Denver Foam

77.72

47.85

06/07/14


No.

10006054 P 25,000.00


Date 07/07/14

Received from





TAX 2,678.57


Permit No. RD2-02-093 NV 2-3-99



Twenty thousand pesos only

in full/partial of





TIN - 020-156-885-736 NV

Global Holidays


Address

City State ZIP

Ship to Address

City State ZIP


Item Number

Order Taken by

Labor

Total Due 20,000.00


Tax 2,142.86

Shipping

Penn Sand (White) 321 24.92 8,000.00


Cup Stones 213 56.34 12,000.00

Sales OrderEdana Costruction 08/13/14



No. 00008154

Name Name

Company

Street


Dept Acct Zip Code

Number Weight

of (Subject

Packages to Change)

Kind of Package



Cup Stones

Penn Sand (White)


FROM TO

GLOBAL HOME DEPOT, INC. Edana Costruction

Sold To: Bill To:

Quantity Amount

213 12,000.00

321 8,000.00

SUB TOTAL 17,857.14

TAX 2,142.86

TOTAL DUE 20,000.00

08/17/14


Cup Stones

Penn Sand (White)

56.34

24.92

Customer Edana Costruction





No.

10008154 P 20,000.00


Date 09/17/14

Received from





TAX 2,142.86


Permit No. RD2-02-093 NV 2-3-99



Twenty thousand pesos only

in full/partial of





TIN - 020-156-885-736 NV

Edana Costruction


Address

City State ZIP

Ship to Address

City State ZIP


Item Number

Order Taken by

Sales OrderAST Builders 03/17/14


Stainless Hinge (Ruby) 225 80.00 18,000.00

Stainless Hinge (Gold) 200 60.00 12,000.00


Tax 3,214.29

Shipping

Labor

Total Due 30,000.00



No. 00003194

Name Name

Company

Street


Dept Acct Zip Code

Number Weight

of (Subject

Packages to Change)


FROM TO

GLOBAL HOME DEPOT, INC. AST Builders

Kind of Package



Stainless Hinge (Ruby)

Stainless Hinge (Gold)

Sold To: Bill To:

Quantity Amount

225 18,000.00

200 12,000.00

SUB TOTAL 26,785.71

TAX 3,214.29

TOTAL DUE 30,000.00



Customer AST Builders



Stainless Hinge (Ruby)

Stainless Hinge (Gold)

80.00

60.00

03/21/14


No.

10006054 P 30,000.00


Date 04/21/14

Received from





TAX 3,214.29


Permit No. RD2-02-093 NV 2-3-99



Thirty thousand pesos only

in full/partial of





TIN - 020-156-885-736 NV

AST Builders

DEPOSIT SLIP

PLEASE CHECK THE APPROPRIATE BOXES DATE:

____X__ DEPOSIT ______ PAYMENT CURRENCY

_______ SAVINGS _______ CURRENT __X_ PESO ___ US DOLLAR ___ OTHERS

ACCOUNT NUMBER 1 5 7 2 1 8 9 6 1 4

DEPOSITOR'S NAME GLOBAL HOME DEPOT, INC.

1 5 0 0 0 0 0

1 5 0 0 0 0 0

VALIDATED: Angie C. Bucos

TELLER 1

BPIDEPOSIT SLIP

(Bank's Copy)

TYPE OF DEPOSIT

CASH

April 21, 2014

CHECK (S)

TOTAL DEPOSITS

AMOUNTS

TELLER'S VALIDATION

PLEASE CHECK THE APPROPRIATE BOXES DATE:

___X___ DEPOSIT ______ PAYMENT CURRENCY

_______ SAVINGS _______ CURRENT _X__ PESO ___ US DOLLAR ___ OTHERS

ACCOUNT NUMBER 1 5 7 2 1 8 9 6 1 4

DEPOSITOR'S NAME GLOBAL HOME DEPOT, INC.

3 0 0 0 0 0 0

3 0 0 0 0 0 0

VALIDATED: Angel M. Gio

Teller 3

BPIDEPOSIT SLIP

(Bank's Copy)

TYPE OF DEPOSIT

CASH

March 21, 1014

CHECK (S)

TOTAL DEPOSITS

AMOUNTS

TELLER'S VALIDATION

The clients provided you with s unadjusted trial balance for the year ended December 31, 2014.

Global Home Depot, Inc.

Trial Balance

December 31, 2014

Debit Credit

Cash in Bank 885,670.75

Petty Cash Fund 20,000.00

Change Fund 10,000.00

BSP Treasury Bills 50,000.00

BDO Time Deposit 65,000.00

Trading Securities 10,000.00

Accounts Receivable 650,723.75

Allowance for Doubtful Accounts

25,504.00

Advances to Suppliers 43,458.50

Advances to Employees 6,200.00

Inventory 544,279.75

Prepaid Taxes 1,248.50

Office Furnitures and Fixtures 145,752.00

Accumulated Depreciation - Office Furnitures and Fixtures

35,426.50

Office Equipment 231,489.75

Accumulated Depreciation - Office Equipment

56,478.25

Delivery Truck 350,248.00

Accumulated Depreciation - Delivery Truck

89,652.25

Leasehold Improvements 15,426.00

Accumulated Depreciation - Leasehold Improvements

5,764.00

Bond Sinking Fund 120,000.00

Building Construction Fund 150,000.00

Accounts Payable - South Home Depot

132,625.75

Accounts Payable - HJR Builders

102,745.50

Accounts Payable - Universal Home Builders

161,431.75

Accrued Expenses

105,482.50

SSS Contributions Payable

9,963.25

Pag-IBIG Contributions Payable

5,000.00

Income Tax Payable

12,548.00

PHIC Contributions Payable

10,489.50

Loans Payable

85,465.50

Bonds Payable

150,000.00

Paid-up Capital

2,500,000.00

Accumulated Earnings

125,438.50

Sales

6,428,655.25

Sales Return 15,623.50

Purchases 5,654,328.25

Purchase Returns

12,548.50

Interest Income

8,245.50

Miscellaneous Income

23,615.00

SSS Contributions 119,559.00

Pag-IBIG Contributions Payable 60,000.00

PHIC Contributions 125,874.00

Rent Expense 120,000.00

Interest Expense 30,200.75

Salaries and Wages 260,525.50

Advertising 13,652.50

Depreciation 15,863.50

13th Month Pay 30,043.75

Doubtful Accounts Expense 3,856.25

Taxes and Licenses 11,105.50

Supplies Expense 15,569.00

Christmas Party 32,402.00

Representations 5,500.00

Meetings/Seminars 75,642.50

Utilities 26,580.75

Transportation 18,245.25

Repairs and Maintenance 25,258.50

Insurance 24,548.75

Communications 16,569.25

Income Tax Expense 36,598.75

Audit Fees 24,245.50

Miscellaneous Expenses 25,789.75

10,087,079.50 10,087,079.50

You started your substantive testing with the following accounts:

CASH AND CASH EQUIVALENTS

The following are composition of cash and cash equivalent:

Cash in bank – Metrobank Account #1508-9456-15 256,389.50

Cash in bank – BPI Account # 1647-9845-12 489,622.00

Cash in Bank – BPI Account # 1572-1896-14 14,659.25

Savings Account – BDO Account # 1896-7589-24 125,000

Petty Cash Fund 20,000

Change Fund 10,000

Total 915,670.75

As your part of your audit procedure, you sent confirmation letters requesting the banks for the

balances of the cash account of the client. Attached below are the replies of the bank. You have obtained the

following information upon performing necessary procedure.

1. Metrobank per confirmation reply discloses the following balances:

Account No. 1508-9456-15 P 272,169.50

Account No. 1508-9456-16 100,000.00

Per audit, account # 1508-9456-16 pertains to a note collected by the bank, proceeds of which per company

instruction is deposited under 90-day time deposit.

2. Bank of the Philippine Islands did not reply to the confirmation letter. As a part of your alternative audit

procedure you have obtained the bank statement.

3. BDO, per confirmation, disclosed the balance of the savings account amounting to P 125,000.00. However,

you have inquired with the client regarding the Savings Account in BDO and you found out that this account

was set aside for the future acquisition of land for building construction.

Metrobank

Account # 1508-9456-15 (Global Home Depot, Inc.)

Bank Statement

December 31, 2014

Date Charges Deposits Balances

Nov. 30 162,839.50

Dec. 1 20,000 182,839.50

2 10,240

520 (BSC) 172,079.50

11 1,550 (BE) 65,000 235,529.50

15 150 (DM) 235,379.50

18 16,000 19,300 238,679.50

24 21,560 60,000 277,119.50

25 2,870 10,000 284,249.50

28 8,450 275,799.50

31 3,630 (DM) 272,169.50

NSF checks:

BE- Bank Error

#634- P 1,000 BSC-Bank Service Charge

#636- P 1,500 DM- Debit Memo

A deposit of P 20,000 on December 1, 2014 is a collection from other Company credited in the

Company’s account.

A charge of P 1,550 on December 11, 2014 is a payment of account for other company charged in the

company’s account.

The only reconciling item for November 2014 is the note collected in November amounting to P1,630.

BPI

Account # 1647-9845-12 (Global Home Depot, Inc.)

Bank Statement

December 31, 2014

Date Deposit Withdrawal Amount

Dec. 1 218,000 218,000.00

2 2,000 216,000.00

3 1,378 217,378.00

5 32,250 249,628.00

7 253.75 BSC 249,374.25

10 21,000 270,374.25

13 9,000 279,347.25

15 5,246.25 NSF 274,128.00

18 100,000 374,128.00

20 2,500 371,628.00

25 50,000 421,628.00

28 50,000 471,628.00

BPI

Account #1572-1896-24 (Global Home Depot, Inc.)

Bank Statement

December 31, 2014

Date Deposits Charges Balances

Nov. 30 15,259.25

Dec. 2 1,340.75 16,600.00

6 8,231.00 8,369.00

15 3,500.00 543.50 BSC 11,325.50

24 1,500.00 12,825.50

26 2,456.50 DM 10,369.00

29 600.00 BSC 9,769.00

31 3,000.00 12,769.00

The following are receipts and disbursement recorded by the client during for the month of December 2014.

Metrobank Account #1508-9456-15

Cash Receipts Book

Date Amount

November 31 164,469.50

December 11 65,000.00

18 19,300.00

24 60,000.00

25 10,000.00

Cash Disbursements Book

Date Check No. Amount

Dec 2 634 1,000.00

4 635 10,240.00

14 636 1,500.00

18 637 16,000.00

18 638 21,560.00

28 639 8,450.00

31 640 3,630.00

BPI Account #1647-9845-12

CASH RECEIPTS AND DISBURSEMENTS JOURNAL

Date Receipts Disbursement Balances

Dec. 1 218,000.00 218,000

2 2,000.00 216,000

4 5,156.00 221,156

5 32,250.00 253,406

8 25,000.00 278,406

10 21,000.00 299,406

11 8,500.00 290,906

18 100,000.00 390,906

50,000.00 440,906

50,000.00 490,906

1,284.00 489,622

BPI Account # 1572-1896-14

BOOK RECEIPTS AND DISBURSEMENT

Date Receipts Disbursement Balances

Nov. 30 15,259.25

Dec. 2 3,000.00 12,259.25

9 5,000.00 7,259.25

15 3,500.00 10,759.25

24 1,500.00 12,259.25

29 600.00 BSC 11,659.25

31 3,000.00 14,659.25

CASH EQUIVALENT

Date Acquired Maturity Date Amount

BSP Treasury Bill 1 12/10/14 01/10/15 25,000



Total 50,000

BDO Time Deposit 12/31/14 03/31/15 65,000

You also conducted a surprise count on the cash on hand of the client. The client was represented by its

custodian, Angelica Tampos. The custodian made available to you the bills, coins, checks, advances and

unreplenished petty cash vouchers. The following were found in the petty cash box upon conducting a cash

count of the petty cash fund at 10:00am on January 17, 2015.

BILLS:

15 hundreds, 20 fifties

COINS:

P 0.25 - 50 rolls and 16 loose (12 pieces to a roll) 154

0.50 - 20 rolls and 10 loose (10 pieces to a roll) 105

1 - 15 rolls and 16 loose (10 pieces to a roll) 166



CHECKS:

Maker Date Amount

AST Builders 12-24-14 1,970.00

Cebu Bionic Builders 12-22-14 5,000.00

John F. Go, Manager 12-21-14 3,500.00

Global Holidays 12-20-14 1,350.00

UNUSED STAMPS:

50 three-peso stamps

UNREPLENISHED PETTY CASH VOUCHER

December 11 #110 Freight bill on merchandise purchased 1,500.00

29 #111 Miscellaneous expense 500.00

31 #112 Advances to employees 2,000.00

Further investigation also disclosed that the cash sales of January 2, 2015 amounted to 1,180 as shown by the

sales records while the Cash Receipts Books and the Bank Deposit Slip showed only 980 was deposited in the

bank of January 3, 2015. The petty cash fund has an imprest balance of 20,000. You also found that the pay

envelopes of the following were marked “Unclaimed”, opened and empty.

A. Del Rosario - 500.00

B. Lozano - 1,500.00

The company has also established a change fund amounting to P 10,000.00.

BANK CONFIRMATION LETTER AND BANK REPLY

January 21, 2015

Reply:

Account Number Type of Account Account Balance Remarks

1896-7589-24 Savings Account P 125,000.00

To the best of our knowledge and belief the information set out above is complete and must be treated as

strictly private and confidential and is furnished without responsibility on the part of the Bank or its officers.

_________________

The Manager

Banco de Oro

Jakosalem St., Cebu City

January 22, 2015

Reply:

Account Number Type of Account Account Balance Remarks

1508-9456-15 Checking Account P 272,169.50

1508-9456-16 Checking Account P 100,000.00

To the best of our knowledge and belief the information set out above is complete and must be treated as

strictly private and confidential and is furnished without responsibility on the part of the Bank or its officers.

_________________

The Manager

Metrobank

Magallanes St., Cebu City

ACCOUNTS RECEIVABLE

The Accounts Receivable subsidiary ledger of Global Home Depot, Inc. shows the beginning balances with the

total debits and credits for the year ended December 31, 2014.

You sent confirmation letters to the following customers: Mandaue City Government, AST Builders, Cebu

Bionic Builders and Global Holidays.

Audit Findings:

1. Merchandise ordered by Mandaue City Government amounting to P 8,000.00 was shipped on December 27,

2014 and received on January 6, 2015. The term is FOB Shipping Point.

2. AST Builders did not reply on the confirmation letter sent.

3. Global Holidays returned merchandise amounted to P 5,500.00 on December 31, 2014 because it was not

the item ordered. The client failed to record the returned merchandise.

In order to ascertain the existence of the receivable from AST Builders, you vouched the subsequent payments

made by AST Builders early in 2015. You have gathered the official receipt and the source documents for

these transactions (shown on the next page).

A provision of 5% of the adjusted Accounts Receivable balance is to be made at year-end.

Mandaue City

Debit Credit Balance

Beginning Balance 112,022.00

Credit Sales 235,227.50 347,249.50

Payments 140,000.00 207,249.50

Cebu City Government


Credit Sales 35,750.00 101,418.00

Payments 65,000.00 36,418.00

AST Builders


Credit Sales 122,474.50 206,694.50

Payments 100,000.00 106,694.50

Cebu Bionic Builders


Credit Sales 246,943.25 278,539.25

Payments 110,000.00 168,539.25

Edana Construction


Credit Sales 112,223.50 156,261.50

Payments 100,000.00 56,261.50

Global Holidays


Credit Sales 67,512.00 105,561.00

Payments 30,000.00 75,561.00


No.

001-500-06 P 6,035.85

OFFICIAL RECEIPT NO. 5673

Date 8/14/2014

Address

the sum of

TOTAL P 6,035.85 (P 6,035.85 )

CASH P 6,035.85

BANK/CHECK NO

50 Bklts. 001.2,500

Permit No. RD2-02-093 NV 2-3-99



TAX 724.30

TOTAL DUE P 6,760.15 Tagudin, Cebu City

the merchandise ordered


Signature

Received from AST Builders


Six thousand thirty-five and 85/100 pesos

in full/partial of



TIN - 020-156-885-736 NV

Amount

In payment of Invoice(s) GLOBAL HOME DEPOT, INC.No. Amount Ground Floor, The Columbia Tower,

001-500-15 P 21,547.50 A.S. Fortuna Street, Mandaue City, Cebu

TIN - 020-156-885-736 NV


Date 10/25/2014


AddressMagallanes St., Cebu City

the sum ofTwenty-four one hundred thirty-three

TOTAL P 21,547.50 and 20/100 pesos (P 24,133.20 ) in full/partial of

CASH P 21,547.50 merchandise ordered.

BANK/CHECK NO


Permit No. RD2-02-093 NV 2-3-99



TAX 2,585.70

TOTAL DUE P 24,133.20 Tagudin, Cebu City Signature


No.

001-500-25 P 17,575.62


Date 11/1/2014

Address

the sum of

TOTAL P 17,575.62 (P 19,684.69 )

CASH

BANK/CHECK NO

BPI 000568 P 17,575.62 50 Bklts. 001.2,500

Permit No. RD2-02-093 NV 2-3-99



TAX 2,109.07

TOTAL DUE P 19,684.69 Tagudin, Cebu City



Signature

and 69/100



Nineteen thousand six hundred eighty-four

in full/partial of



TIN - 020-156-885-736 NV

Amount


Address

City State ZIP

Ship to Address

City State ZIP


Item Number

Order Taken by

Labor

Total Due 6,760.15


Tax 724.30

Shipping


100010 Hinges 15 402.39 6,035.85

Magallanes St.

Cebu City 6000

Sales Order FormAST Builders 6/14/2014 (032)253-7902

Magallanes St.

Cebu City 6000


Address

City State ZIP

Ship to Address

City State ZIP


Item Number

Order Taken by

Labor

Total Due 34,006.22


Tax 3,643.52

Shipping

146.92 8,815.20 100001 Plastic High Chair 60


100015 Rebar Cutter 125 172.38 21,547.50

Magallanes St.

Cebu City 6000


Magallanes St.

Cebu City 6000


Address

City State ZIP

Ship to Address

City State ZIP


Item Number

Order Taken by

Labor

Total Due 28,433.44


Tax 3,046.44

Shipping

5858.54 17,575.62 100021 Backer Rod-Poli Void 3


100009 Angle Iron 1 7,811.38 7,811.38

Magallanes St.

Cebu City 6000


Magallanes St.

Cebu City 6000



No. 70001

Name Company

Street


Dept Acct Zip Code

Number Weight

of (Subject

Packages to Change)

15

Kind of Package

Serial Numbers

Description of Articles


Hinges

Magallanes St.

Cebu City

6000


FROM TO

Global Home Depot, Inc. AST Builders



No. 90001

Name Company

Street


Dept Acct Zip Code

Number Weight

of (Subject

Packages to Change)

125

60

Kind of Package

Serial Numbers



Rebar Cutter

Plastic High Chair

Magallanes St.

Cebu City

6000


FROM TO




No. 90025

Name Company

Street


Dept Acct Zip Code

Number Weight

of (Subject

Packages to Change)

1

3

Kind of Package

Serial Numbers



Angle Iron

Backer Rod-Poli Void

Magallanes St.

Cebu City

6000


FROM TO


Sold To: Bill To:

Quantity Amount

15 6,035.85

SUB TOTAL 6,035.85

TAX 724.30

TOTAL DUE 6,760.15

Hinges 402.39


AST Builders AST Builders


7/14/2014 SP

GLOBAL HOME DEPOT, INC.INVOICE

Ground Floor, The Columbia Tower, No. 001-500-06


Sold To: Bill To:

Quantity Amount

125 21,547.50

60 8,815.20

SUB TOTAL 30,362.70

TAX 3,643.52

TOTAL DUE 34,006.22

Rebar Cutter 172.38

Plastic High Chair 146.92




9/25/2014 SP




Sold To: Bill To:

Quantity Amount

1 7,811.38

3 17,575.62

SUB TOTAL 25,387.00

TAX 3,046.44

TOTAL DUE 28,433.44

Angle Iron 7,811.38

Backer Rod - Poli Void 5,858.54




9/25/2014 SP




CONFIRMATION LETTER REPLY

January 15, 2015

To : Pili, CPA

SRV & Co. CPAs

The amount payable to Global Home Depot, Inc. per our records as of December 31, 2014 amounted

to P 199,249.50.

Name: Lindcy Erasan

Position: Treasurer

Company: Mandaue City Government

January 17, 2015

To : Pili, CPA

SRV & Co. CPAs

The amount due to Global Home Depot, Inc. shown above, P 168,539.25, as of December 31, 2014 is

correct.

Name: Victor Rama

Position: A/P Supervisor

Company: Cebu Bionic Builders

January 18, 2015

To : Pili, CPA

SRV & Co. CPAs

Global Home Depot, Inc.’s amount receivable from us per our records as of December 31, 2014 is P

70,061.00.

Name: Marcelo Ramirez

Position: A/P Supervisor

Company: Global Holdings

INVENTORIES

INVENTORY COUNT PROCEDURES OBSERVATIONS

Ascertain that receiving and shipping

departments are informed about appropriate

cutoff procedures.

It was ascertained that the receiving and

shipping department are informed with the

appropriate cutoff procedures.

Observe and note the client’s practices and

procedures regarding segregation and

identification of slow-moving, damaged, or

obsolete inventory.

Obsolete inventories found at the warehouse

department are properly set aside from the

count and was properly valued.

Observe count teams and determine whether

the client’s instructions and procedures are

being properly followed.

The inventory count was strictly observed and

it was also ascertained that the client’s

instructions and procedures are being properly

followed.

Tour the shipping and receiving areas and

obtain information about inventory items

therein. Determine whether they should be

counted in or excluded from the inventory.

The inventories that are still at the shipping

department on hold upon the request of the

customer are properly excluded as inventory

for the period.

As part of your audit procedure, in search for possible unrecorded and misstated amounts for any accounts

affected by transactions involving inventories, you conducted a cut-off test. In the course of your audit, you

noted the following unresolved issues as they may lead to additional adjustments to any possible accounts that

they may affect.

DECEMBER FOB COST DATE SHIPPED DATE RECEIVED VENDOR

Purchases D 1,000.00 12/23/2014 12/19/14 (11:02 AM) South Home Depot, Inc.

D 8,209.00 12/29/2014 01/02/15 (1:25 PM) HJR Builders

S 9,000.00 12/25/2014 01/01/15 (7:20 AM) Universal Home Builders

S 30,070.75 01/01/2015 01/05/15 (5:00 PM) HJR Builders

DECEMBER FOB AMOUNT DATE SHIPPED DATE RECEIVED CUSTOMER

Sales D 25,769.00 12/22/2014 12/30/14 (10:35 AM) Edana Construction

D 4,000.00 12/31/2014 01/03/15 (2:30 PM) Global Holidays

S 7,100 12/25/2014 01/02/15 (9:45 AM) AST Builders

S 40,000 01/01/2015 01/03/2015(4:00 PM) Global Holidays

Note: Gross profit is 20% based on sale

A surprise and thorough inspection was conducted and revealed the following information. These were not yet

taken into account.

Inventories costing P 102, 980.25 were found outside the warehouse of Global Home Depot. These

were included in the physical count, but excluded in the books. These inventories were subjected to

weather changes, making them unfit for sale.

Five boxes containing 50 pieces of inventories per box were found in the locker of an employee. These

were not counted during the previous physical count. A unit of inventory costs P 80.00.

Inventories costing P 480,007.00 where on its way to Edana Construction. They were shipped on

December 30, 2014 on FOB Shipping Point Terms. The sale was recorded and inventories were

excluded per books.

The audit team observed the inventory count on January 5, 2015, the result of the test count is as follows:

ITEM NAME UNITS PER COUNT UNIT COST UNIT PER INVENTORY

LIST 12/31/14

Float Plans 72 270.00 93

Plastic High Chair 74 455.00 82

Rebar Clutter 95 200.00 95

Angle Iron (Cut to Size) 55 1,550.00 47

Angle Iron (Rolled Angles) 73 520.00 61

You have gathered these source documents to reconcile the difference:

Ship To: Bill To:




P.O. NUMBER

Amount

12,400.00

6,240.00

SUB TOTAL 16,642.86

TAX 1,997.14

TOTAL DUE 18,640.00

Angle Iron (Cut to Size) 1,550.00

Angle Iron (Rolled Angles) 520.00

8

12

Description Unit PriceQuantity

F.O.B. POINT TERMS

HJR BUILDERSINVOICE


(032) 567-7890 INVOICE NO. 11-24961-3

DATE: 02/14/14

SHIPPED VIASALESPERSON DATE SHIPPED

Damaged glass bricks that are considered obsolete are valued at P 2,355.00 per December 31, 2014 were

discovered during the physical count. These items are still included in the inventory list but were omitted from

the physical count pending their write off.

Furthermore, the client prepared the summary presented below and gave it for verification.

ITEM NAME QUANTITY COST PER UNIT NRV

Rebar Clutter 160 55 7,890.00

Plastic High Chair 70 59 3,950.00

Angle Iron 90 40 2,550.00

ACCRUALS

You examined the disbursements journal for any payments made by the company in early 2015 for possible

unrecorded liabilities for the year ended December 31, 2014. You have gathered the following vouchers paid

(shown on the next page).

Sold To: Bill To:

Quantity Amount

21 5,670.00

8 3,640.00

SUB TOTAL 8,312.50

TAX 997.50

TOTAL DUE 9,310.00



INVOICENo.


270.00

455.00

North Home Depot, Inc.North Home Depot, Inc.

Float Plans

Plastic High Chair

Description

Date Terms

Unit Price

P.O. Number

No. : 001-0009

Payee : VECO, INC.

Date : January 05, 2015

Amount : 12,876.75

Description :

Journal entry :

Utilities expense 12,876.75

Cash in bank 12,876.75

CHECK VOUCHER

Payment of electric bill for the month of December 2014.

No. : 001-0008

Payee : GHJ Custodial Services


Amount : 850.00

Description :

Journal entry :

Accrued expenses 850.00

Cash in bank 850.00

CHECK VOUCHER

Payment for one-time custodial service in Novermber 2014.

No. : 001-0012

Payee : South Pharmacy


Amount : 1,200.00

Description :

Journal entry :

Miscellaneous expense 1,200.00


CHECK VOUCHER

Payment for purchases of medicines on January 3, 2015.

No. : 001-0014

Payee : Ocampo and Cabrera Properties


Amount : 10,000.00

Description :

Journal entry :

Christmas party 10,000.00


Payment for rental of chairs used in the Christmas party for 2014.

CHECK VOUCHER

No. : 001-0016

Payee : June J. Agusto Enterprises


Amount : 125.00

.

Description :

Journal entry :

Miscellaneous expense 125.00

Cash in bank 125.00

CHECK VOUCHER

Payment for stubs.

No. : 001-0010

Payee : Largo and Co. Lawyers

Date : January 6,2015

Amount : 5,478.00

Description :

Journal entry :

Legal expenses 5,478.00


CHECK VOUCHER

Payment for legal services in 2014.

No. : 001-0011

Payee : CVB Travel and Tours


Amount : 2,310.50

Description :

Journal entry :

Travel Expenses 2,310.50


CHECK VOUCHER

Payment for travel expenses on January 5, 2015.

No. : 001-0013

Payee : 7-Eleven


Amount : 2,150.00

Description :

Journal entry :

Miscellaneous expense 2,150.00


CHECK VOUCHER

Payment for snacks.

No. : 001-0015

Payee : Condrado Valiks


Amount : 250.25

Description :

Journal entry :

Utilities expense 250.25

Cash in bank 250.25

CHECK VOUCHER

Payment for purchases of cleaning materials in December 2014.

No. : 001-0022

Payee : Victory Supplies


Amount : 50.00

.

Description :

Journal entry :

Miscellaneous expense 50.00

Cash in bank 50.00

CHECK VOUCHER

Payment for pencils purchased.

ap1 comprehensive problem

Documents

company location

retail forecasting

registered business

regular customers

goods customers

walkin customers

merchandising industry

manufacturers burden