Problem 1.

Mac36ag Company has the following balances for the year 2018:
Postage stamps 3,000 Supplies
3 month-Time deposit 10,000 CE
Coins and Currencies 15,000 C
BDO Savings Account 50,000 C
Checks 25,000 C
Postdated customer checks 10,000 AR
Sinking Fund (if silent, NCA) 100,000 NCA
Treasury bill purchased 12/1/2018, maturing 2/28/2019 800,000 CE
Money market instruments (If silent, CE) 150,000 CE
Plant Expansion Fund 500,000 NCA
Money orders 50,000 C
Petty cash fund 10,000 C
Bank drafts 25,000 C
IOUs 5,000 AR
Treasury Bond, purchased 3/1/2018, maturing 2/28/2019 250,000 NCA
Preference share redemption fund 50,000 NCA
Tax Fund 50,000 C
Payroll Fund 300,000 C
Redeemable preference share, purchased 11/1/2018 due on 3/1/2019 350,000 NCA

1. How much should be reported as CASH for the year 2018? 525,000
2. How much should be reported as CASH EQUIVALENTS for the year 2018? 960,000

Cash Items:
Cash on hand
Demand Deposit and Savings Account
Bank Drafts
Money orders
Checks – cashiers checks, personal check, managers check, travelers checks, certified checks
Petty cash fund
Revolving Fund
Payroll Fund
Change fund
Dividend Fund
Tax fund
Travel Fund
Interest Fund
Cash Equivalents:
3-month treasury bill
90-day money market instrument or commercial paper
3-month time deposit
1-year Treasury bill acquired 3 months before maturity date
Redeemable Preference Share acquired 3 months or less before redemption date

Problem 2. At year end of 2015, Myra Company reported cash and cash equivalents which comprised the
following:
Cash on hand 500,000
Demand deposit 4,000,000
Certificate of deposit 2,000,000
Postdated customer check 300,000
Petty cash fund 50,000
Traveler’s check 200,000
Manager’s check 100,000
Money order 150,000
Time deposit, purchased December 15, 2015
and due March 15, 2016 2,000,000

The cash on hand included a P200,000 check payable to Myra, dated January 15, 2016.

3. What total amount should be reported as “cash” at year-end? 4,800,000

4. What total amount should be reported as “cash equivalents” at year end? 4,000,000

Problem 3. La Luna Company reported the following:

Bond sinking fund 1,500,000
Checking account in BPI (A P320,000 check is
still outstanding per bank statement) OC is Bank Recon I. 3,155,000 per book
Currency and coins awaiting deposit 1,135,000
Petty cash fund including paid vouchers of 15,000 50,000
 Receivables from officers and employees 175,000
Deposit in a bank closed by BSP 500,000
Treasury bill, purchased November 1, 2015
maturing January 31, 2016 3,500,000
Time deposit purchased December 1, 2015
maturing March 31,2016 4,000,000

5. What total amount of cash should be reported under current assets? 4,325,000

Problem 4. Lipton Company shows the following account balances in their financial records as of December
31, 2014:
Checking account at Morgan Bank (20,000)
Checking account at Land Bank 500,000
Payroll-account- National Bank 100,000
Foreign bank account-restricted 750,000
Postage stamps 22,000
Employees’ postdated checks 30,000
I.O.U. from president’s brother 75,000
Traveler’s check 50,000
No-sufficient fund check 18,000
Petty cash fund (16,000 in currency & Expenses receipts for 84,000) 100,000
Cashier’s checks 36,000

6. What is the correct cash balance to be reported in the statement of financial position of Lipton Company
on December 31, 2014 assuming the bank overdraft is repayable on demand and it’s integral to the entity’s
cash management? 682,000

Problem 5. On December 31, 2014, Agenda Company has the following information concerning its cash
and cash equivalents and some other items:
Coins and currency 50,000
Checks receive from customer 600,000
Certificate of deposit, term: 12 months 800,000
Petty cash fund 4,000
Postage stamps 600
Bank A acct.1, checking account balance 2,100,000
Post-dated check, customer 10,000
Money order from customer 15,000
Cash in savings account 100,000
Bank draft from customer 40,000
Utility deposit to gas company, refundable 5,000
Cash advance received from customer 8,000
NSF check, C. company 20,000
Cash advance to company executive, collectible upon demand 200,000
Bank A-acct 2, checking account, overdraft 20,000
IOUs from employees 12,000

7. What amount of cash and cash equivalents should Agenda Company report in its December 31, 2014
statement of financial position? 2,889,000

Problem 6.Dove Company reported checkbook balance on December 31, 2015 at P4,000,000.
* A customer check amounting to P200,000 dated January 2, 2016 was included in the December 31, 2015
checkbook balance
* Another customer check for P500,000 deposited on December 22, 2015 was included in the checkbook
balance but returned by the bank for insufficiency of fund. This check was redeposited on December 26,
2015 and cleared two days later.
* A P400,000 check payable to supplier dated and recorded on December 30, 2015 was mailed on January 16,
2016.
* A petty cash fund of P50,000 comprised the following on December 31, 2015:
Coins and currencies 5,000
Petty cash vouchers 43,000
Return value of 20 cases of soft drinks 2,000
* A check of P43,000 was drawn on December 31, 2015 payable to Petty Cash. (Petty cash fund replenishment)

8. What total amount should be reported as cash on December 31, 2015? 4,248,000

Problem 7. S Company prepared the following bank reconciliation on December 31, 2015:

Balance per bank statement 3,000,000

Add: Deposit in transit 195,000
Checkbook printing charge 5,000
Error made by bank 35,000
NSF Check 110,000 345,000__
Total 3,145,000

Less: Outstanding check 100,000

Note collected by bank including
15,000 interest 215,000 315,000

Balance per book 2,830,000

The entity had cash on hand P500,000 and petty cash fund P50,000 on December 31, 2015.

9. What amount should be reported as cash in bank on December 31, 2015? 3,130,000
a. 2,930,000 c. 3,130,000 e. Other amount (provide your answer)
b. 3,095,000 d. 2,895,000

10. What total amount of cash should be reported on December 31, 2015? 3,680,000

Problem 8. The information below is from the books of the Seminole Corporation on June 30:

Balance per bank statement P11,164

Receipts recorded but not yet deposited in the bank 1,340
Bank charges not recorded 16
Note collected by bank and not recorded on books 1,120
Outstanding checks 1,100
NSF checks - not recorded on books nor redeposited 160
11. Assuming no errors were made, compute the cash balance per books on June 30 before any reconciliation
adjustments. 10,460

Problem 9. . If a petty cash fund is established in the amount of P250, and contains P200 in cash and P45 in
receipts for disbursements when it is replenished,

12. The journal entry to record replenishment should include credit to the following accounts
a. Petty Cash, P45.
b. Petty Cash, P50.
c. Cash, P45; Cash Over and Short, P5.
d. Cash, P50.

Problem 10. A Company provide the following bank reconciliation on May 31:

Balance per bank statement 2,100,000

Deposits outstanding 300,000
Checks outstanding (80,000)____

Correct cash balance 2,320,000

Balance per book 2,322,000

Bank service charge (2,000)_____
Correct cash balance 2,320,000
Data for the month of June:

Bank Book
Checks recorded 2,360,000 2,400,000
Deposits recorded 1,800,000 1,900,000
Collection by Bank (400,000 note
Plus interest ) 420,000
NSF check returned with June 30 10,000
Balances 1,830,000 1,810,000

13. What is the amount of deposits in transit on June 30? 400,000

14. What is the amount of checks outstanding on June 30? 120,000/118,000

Problem 11. Z Company presented the following bank reconciliation for the month of November:
Balance book, November 30 3,000,000
Add: Outstanding checks 1,200,000
Bank credit recorded in error 200,000 1,400,000
Less: Deposit in transit 800,000
Balance per bank statement, November 30 3,600,000

Data per bank statement for the month of December follow:

December deposits, including note collected of 1,000,000 for Chris 5,500,000

December disbursements, including NSF customer check
P350,000 and service charge P50,000 4,400,000

All items that were outstanding on November 30, cleared through the bank in December, including the bank
credit. In addition, checks amounting to P500,000 were outstanding and deposits of P700,000 were in transit
on December 31.

15. What is the cash balance per ledger on December 31? 4,300,000
16. What is the amount of cash receipts per book in December? 4,400,000
17. What is the adjusted cash in bank on December 31? 4,900,000