1 Using the information below, what amount of cash and cash equivalents should report in its year-end statement of cash flows?
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Coins and currencies
Checks received from customers
Certificate of deposit, term: 12 months
Petty cash fund
Postage stamps
Bank A, checking account balance
Post-dated check from customer
Money order from customer
Cash in savings account
Bank draft from customer
Utility deposit to gas company, refundable
Cash advance received from customer
NSF check, BSA Company
→ Cash advance to company executive, collectible upon demand
→ BPI, checking account, overdraft
→ IOUs from employees
50,000.69
660,000.96
800,000.00
4,369.96
600.00
2,101,001.00
10,001.01
15,000.00
100,000.00
50,000.00
5,000.00
6,000.00
20,000.00
Cash and CE
Others
50,000.69
660,000.96
800,000.00 Short term invesment
4,369.96
600.00 Supplies
2,101,001.00
10,001.01 AR
15,000.00
100,000.00
50,000.00
5,000.00 Other assets
6,000.00 AP
20,000.00 AR
200,000.00
200,000.00 AR
20,000.00
20,000.00
20,000.00 AP
20,000.00 AR
2,980,372.61
2 The following information is shown in the accounting records of BSA Company. What is the cash balance on December 31, 2019?
1/1/2019
Cash
Accounts receivable
Merchandise inventory
Accounts payable
Sales
Gross profit
Operating expenses
3
12/31/2019
50,000
82,000
101,000
68,000
116,000
93,000
64,000
2,900,000
16% based on cost
300,000
QCU Corporation's checkbook balance on December 31, 2019 was P160,000. On the same date, QCU held the following items below. In its
December 31, 2019 statement of financial position, how much should QCU report as cash?
→ A P5,000 check payable to QCU, dated January 2020, was not included in the December 31 checkbook balance
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A P3,500 check payable to QCU which was deposited December 19 and included in the December 31 checkbook balance,was returned
by the bank on December 30 marked NSF. The check was re-deposited on January 2, 2020 and cleared on January.
→ A P25,000 check payable to a supplier and drawn on QCU's account, was dated and recorded on December 31, but was not mailed until
January 19, 2020
4 QCU Company had the following transactions all through out the year 2019 which is its first year of operations, what is the cash balance at
December 31, 2019?
Sales (90% collected in first year)
1,500,000.00
Bad debt written-off
60,000.00
Disbursements for cost and expenses
1,200,000.00
Disbursements for income taxes
90,000.00
Purchases of fixed assets
400,000.00
Depreciation on fixed assets
80,000.00
Proceeds from issuance of ordinary share
500,000.00
Proceeds from short-term borrowings
100,000.00
Payments on short-term borrowings
50,000.00
5 The cash account in the current asset section of the December 31, 2019 balance sheet of King Company consists of the information below.
Considering the pertinent information, what is the correct cash fund balance of King Company at December 31, 2019 of Statement of
Financial Position?
Cash in banks
2,250,000.00
Cash restricted for additions to plant (expected to be disbursed in 2020)
3,000,000.00
30,000.00
Petty cash funds (all funds were replenished on December 31, 2019)
Included in the cash in banks is a compensating balance of P750,000.00 against short-term borrowing arrangements at December 31,
2019. The compensating balance is not legally limited as to withdrawal by King Company.
6 BSA Company reported a total cash P6,325,000 on December 31, 2019, which includes the information below. Considering that
information, How much is the correct amount of cash equivalents that BSA Company should report in its December 31, 2019 statement of
financial position?
→ Two certificates of deposits, each totaling P500,000. These certificates of deposit have a maturity of 120 days
→ A check that is dated January 12, 2020 in the amount of P125,000
→ A commercial paper of P2,100,000 which is due in 120 days
→ Currency and coins on hand amounted to P7,700
→ BSA Company has agreed to maintain a cash balance of P500,000 in one of its banks at all times and it is not available for withdrawal
and to ensure future credit availability
7 While checking the cash accounts of ABS Company on December 31, 2019, you find the following information below. What is the correct
cash in bank balance for ABS Company on December 31, 2019?
Balance per books
67,760.00
Balance in checking account (outstanding checks per books of P9,876)
65,323.00
Deposit in bank closed by BSP
16,000.00
Deposit in transit
12,345.00
Currency and coins counted
9,500.00
Petty cash fund (of which P450 is in the form of paid vouchers)
1,000.00
Bank charges not yet taken up in the books
58.00
Bond sinking fund-cash
10,000.00
Receivables from employees
700.00
Book error in recording a check, the correct amount as paid by the bank is P890 instead of P980.
Cash and CE
50,000
2,866,000
2,796,000
120,000
Accounts Payable
68,000
300,000
2,796,000 2,492,000
64,000
Cost of sales
Inventory, End
CGAS
Inventory, Beg
Purchases
160,000
(3,500.00)
25,000
181,500
Cash and CE
1,350,000.00 1,200,000.00
500,000.00
90,000.00
100,000.00
400,000.00
50,000.00
210,000.00
30,000
0
67,760.00
55,447
12,345
(58.00)
90.00
67,792.00
67,792.00
2,500,000
93,000
2,593,000
101,000
2,492,000
Accounts Receivable
82,000
2,900,000
2,866,000
116,000
8 On December 31, 2019, QCU Co. had the following cash balances:
1,800,000.00
→ Cash in banks
50,000.00
→ Petty cash funds (all funds were reimbursed on December 31, 2019)
→ Cash in banks included P600,000 in separate bank where-in the company is required to maintain a minimum average of P800,000 of 10
workings on a rolling basis.
In the current assets section of QCU's December 31, 2019 statement of financial position, what total amount should be shown as cash?
9 Show below is the bank reconciliation for BSA Company for May 2019. What is the cash balance per books on June 30, 2019?
Balance per bank, May 31, 2019
80,008.80
Add: Deposits in transit
12,020.20
Total
92,029.00
Less: Outstanding checks
14,410.41
Bank credit recorded in error
5,050.50
19,460.91
Cash balance per book, May 31, 2019
72,568.09
1,800,000
50,000
600,000
2,450,000
80,008.80
55,055.05
(48,089.98)
86,973.87
86,973.87
1,900.19
(15,000.50)
73,873.56
The bank statement for June 2019 contains the following data:
Total deposits
55,055.05
Total charges, including an NSF check of P4,000 and a service charge of P200
48,089.98
All outstanding checks on May 31, 2019, including the bank credit, were cleared in bank in June 2019. There were outstanding checks of
P15,000.50 and deposits in transit of P19,000.19 on June 2019.
10 QCU Company had a bank reconciliation at March 31, 2019:
Balance per bank statement, March 31, 2019
Add: Deposits in transit
Total
Less: Outstanding checks
Balance per books, March 31, 2019
Data per bank statement for the month of April 2019 follows:
Deposits
Disbursements
46,508.96
10,301.31
56,810.27
12,608.68
44,201.59
49,700.00
(12,608.68)
7,500.50
44,591.82
58,400.00
49,700.00
All reconciliation items at March 31, 2019 cleared through the bank in April. Outstanding checks at April 30, 2019 totaled P7,500.50
What is the amount of cash disbursement per book in April?
11 BATASAN Company is preparing its March 31 bank reconciliation. The following data are available:
From the February 28 bank reconciliation
Deposit in transit, P1,771.17
Outstanding checks, P3,909.90
March data:
Balance, February 28
March deposits reflected
March checks reflected (erroneously includes a check drawn by Butasan Company for
P1,500)
Note collected (including P200 interest)
Service charge
Balance, March 31
How much is the deposits in transit at March 31?
12
Per Bank
74,140.40
47,606.66
Per Book
71,940.04
49,000.36
-61,700.00
-61,000.00
20,000.00
(120.00)
79,927.06
49,000.36
47,606.66
(1,771)
45,835.49
3,164.87
59,940.40
The cashier of ABS Company misplaced all the bank statements for the past years, you reviewed the accounting records and discovered that
the following journal entries were made to reconcile the June 30, 2019 bank records and accounting records.
Accounts Receivable
Miscellaneous Expense
Notes Receivable
Interest Revenue
Cash
76,612.60
625.30
10,823.10
108.23
66,306.57
371,123.50
-66,306.57
304,816.93
10,375.57
315,192.50
Pre-adjustment cash balance in the accounting records was P371,123.50, outstanding checks were P10,375.57 and no other adjustments
were required.
What is the balance of the cash account per bank statement as of June 30, 2019?
13 In reconciling the cash in bank of QCU Company with the bank statement balance for the month of November 2019, the following
information are summarized:
Book debits for November, including October CM for noted collected, P60,000
808,008.80
Book credits for November, including NSF of P20,000 and sservice charge of P800 for October
620,000.62
Bank credits for November including CM for November for bank loan of P100,000 and October deposit in
700,001.71
transit for P80,000
Bank debits for November including October outstanding checks of P170,800 and November service charge
600,006.60
of P200
What is the deposit in transit for the month of November?
14 The following information was included in the bank reconciliation for BSA Company for June:
Checks and charges recorded by bank in June (including a June service charge of P331.13), P172,101.20; service charge made by bank in
May and recorded on the books in June, P202.20; total of credits to cash in all journals during June, P198,020.02: Customer's NSF check
returned as a bank charge in June (no entry made on books), P1,001.10; Customer's NSF check returned in May and redeposited in June (no
entry made on books in either May or June), P2,505.05; outstanding checks at June, P80,606.60 and deposit in transit in June, P6,006.60.
Books
808,008.80
-60,000.00
100,000.00
848,008.80
Books
198,020.02
331.13
-202.20
1,001.10
199,150.05
=
Bank
700,001.71
-80,000.00
228,007.09
848,008.80
Bank
172,101.20
80,606.60
-53,557.75
=
199,150.05
=
Books
43,132.23
15,050.05
-6,060.00
7,877.90
60,000.18
What were the total outstanding checks at the beginning of June?
15 ABS, Inc. reported a balance of P43,132.23 in its cash account at the end of the month. There were P20,020.20 deposits in transit and
P15,173.37 outstanding checks. The bank statement showed a balance of P55,153.35, including a note with face value of P15,050.05, and a
P6,060.00 service charge.
How much is the interest on the note collected by the bank?
Bank
55,153.35
20,020.20
-15,173.37
60,000.18