ERROR CORRECTIONMANNY Co. reported pretax incomes of P 4,545,000 and P 3,483,000 for the years 2010 and 2011, respectively. Your audit however revealed the following errors:a. Sales for 2010 included a P 1,719,000 collection pertaining to a delivery made in January of 2011 under FOB Seller freight terms.b. Inventory on December 31, 2010 was understated by P 388,800 while inventory on December 31, 2011 was overstated by P 255,000.c. Interest expenses on bonds for both years were recorded as payments were made every December 31. The bonds have a face value of P 11,250,000 and pay a nominal interest rate of 6%. They were issued at a discount of P675,000 on January 1, 2009 to yield an effective interest rate of 7%.d. Ordinary repairs to equipment had been charged to the Equipment account during 2010 to 2011. Repairs of P 382,500 and P 423,000 had been incurred in 2010 and 2011, respectively. In determining depreciation charges, MANNY Co. uses the double declining balance method over a ten year useful life. The rate is being applied to the balance of the asset account at the end of each year.What is the adjusted pretax income for 2010 and 2011?PETTY CASH FUND

UHAWSAIYO COMPANYGENERAL AND PETTY CASH COUNTAUDIT YEAR: 2014DATE OF COUNT: January 5, 2015, 9:10 am

Bills and Coins

DenominationBundles of 100 pcs.Rolls of 50 coinsLoose

P 50019

100227

5035

2054

1010

564

11020

.254016

Checks

MakerPayeeDateAmount

T. Otis customerUhawsaiyo12/30/14P 11,920

R. Eyes customer Uhawsaiyo12/26/1412,505

O. Liever customerUhawsaiyo1/2/155,707

F. Rancisco customerUhawsaiyo12/21/1413,350

UhawsaiyoABC. Co12/27/1414,500

M. Doza officer Cash1/5/15310

O.Campo officer *Cash12/29/15260

*Amount is for a return of travel advance mad to the employee in an earlier period.

Vouchers and IOU

Paid toDateAmount

PNR transportation expense1/2/15P 35

Post ofiice- Postage Stamps12/20/14150

Italian Village Christmas Party12/23/146,290

I.Dio - IOU12/27/14300

Others:1. Cash sales invoices ( all currencies No. 17903 to 18112), P 100,5002. Official ReceiptsNumberAmountForm of Collection

31250P 560Cash

3125112,505Check

312521,202Cash

3125311,920Check

3125413,350Check

3. Stamps of various denomination amounted to P 80.4. A notation on a sheet of paper as follows:Proceeds from employee contribution for Christmas Party, P 9,5005. Petty Cash Ledger, P 15,000.

Required:1. How much is the petty cash shortage as of January 5, 2015?2. What is the net adjustment to the Petty Cash Fund?3. What is the adjusted Petty Cash fund Balance as of December 31, 2014?