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Summary

The petty cash fund consisted of the following items as of December 31, 2018:  Currency and coins, P8,  Employees advances, P1,  Unreplenished petty cash vouchers, 2,  Replenishment check drawn by company payable to the pettycashier, P2,  Imprest Balance P15,000. What is the correct petty cash ...

Description

The petty cash fund consisted of the following items as of December 31, 2018:  Currency and coins, P8,500  Employees advances, P1,800  Unreplenished petty cash vouchers, 2,240  Replenishment check drawn by company payable to the pettycashier, P2,320  Imprest Balance P15,000. 1. What is the correct petty cash balance reported in December 31, 2018 statement of financial position? a. P8,500 b. P10,820 c. P12,820 d. P15,000 The petty cash fund consisted of the following items as of December 31, 2018:  Currency and coins, P8,500  Employees advances, P1,800  Currency in an envelope marked “collections for charity” with employees name attached, P2,000. But nothing was found inside.  Unreplenished petty cash vouchers, 2,240  Replenishment check drawn by company payable to the petty cashier, P2,320  Imprest Balance P15,000. 2. What is the correct petty cash balance reported in December 31, 2018 statement of financial position? a. P12,820 b. P10,820 c. P 8,820 d. P15,000 A surprise count of petty cash fund of Jing Trading on July 4, 2018 showed the following: Currencies P5,600 Coins 450 Paid vouchers for: Office Supplies (dated July 2, 2018) 1,750 Newspaper subscription for two weeks (dated June 29, 2019) 300 Loans to employees 3,000 Company check representing replenishment of the petty cash fund 3,850 The company’s fiscal year ends of June 30. The petty cash fund was established for an amount of P15,000. 3. What is the correct amount of petty cash fund at June 30, 2018? a. P6,050 b. P9,900 c. P11,650 d. P15,000 4. How much is the shortage or overage in the petty cash fund at June 30, 2018? a. P50 shortage b. P50 overage c. P1,800 shortage d. P1,800 overage Anong Pizza Na Company established a petty cash fund of P10,000 on July 1, 2018. At the end of the month, the count of cash on hand indicated that P3,557.4 remained in the fund. A review of the petty cash vouchers disclosed the following expenses had been incurred during the month: Office supplies P841.60 Postage 780.00 Representation 1,000.00 Transportation 1,321.40 Miscellaneous 837.60 Other items found in the petty cash drawer were as follows: A sympathy envelope containing P3,500, representing employees’ contributions for the death of the mother of the company’s messenger. An employee’s check for P1,100 dated August 15, 2018. 5. The given information indicates that there is a a. Cash shortage of P562 b. Cash overage of P562

C. Cash shortage of P1662

The trial balance of Pening Garcia at December 31, 2018 includes the following accounts:

D. Cash Overage of P1662

Cash on hand – P190,700; Metrobank current account- P310,200; Allied Bank current account #1 – P320,000; Allied Bank Current Account #2 – P40,000 credit; Security Bank savings- P150,000. Additional Information: 1. Cash on hand includes the following items:  Customer’s check for P30,000 returned by bank on December 26, 2018 due to insufficient funds, but subsequently redeposited and cleared by the bank on January 10, 2019.  Postal money orders received from customers, P18,000.  Customer’s check for P15,000 dated January 10, 2019 received on December 23, 2018. 2. Included among the checks drawn by Pening Garcia Company against the Metrobank current account had recorded in December 2018 are the following:  Check no. 1214 written and dated December 22, 2018 and delivered to payee on January 3, 2019, P25,000.  Check no. 1219 written December 26, 2018 dated January 30, 2019 and delivered to payee on December 28, 2018, P43,000. 3. The credit balance in Allied Bank current account #2 represents check drawn in excess of the deposit balance that are still outstanding at December 31, 2018. A right of offset exists in the agreement between Allied Bank and its depositor. 4. The savings account deposit in Security Bank was set aside by the Board of Directors for the acquisition of new equipment. This amount is expected to be disbursed in the next three months from December 31, 2018. 6. What is the total amount reported in Pening Garcia December 31, 2018 statement of financial positions as cash on hand and in banks? a. P817,400 b. P803,900 c. P814,720 d. P978,220 Mary Company had the following account balances at December 31, 2018: Cash in Metrobank Cash in BPI Cash on hand (includes a customer’s Check for P15,000 Dated January 5, 2019) Cash restricted for acquisition of machinery (expected to be disbursed In 2019)

P1,875,000 200,000 125,000 1,600,000

Cash in Metrobank include P300,000 of compensating balance against short term borrowing agreements. The compensating balance is not legally restricted as to withdrawal by Mary. 7. In the current asset section of Mary’s December 31, 2018 statement of financial position, total cash should be recorded at a. P2,185,000 b. P1,885,000 c. P3,785,000 d. P3,485,000 Bank Reconciliation

1. Deposit in Transit 2. Erroneous charge by bank 3. NSF check returned by the bank 4. Bank service charges 5. Understated payments recorded in the books 6. Overstated receipts recorded in the books 7. Outstanding checks 8. Erroneous credits by bank 9. Note collected by bank 10. Interest credit by bank 11. Overstated disbursements recorded in the books 12. Understated receipts recorded in the books

Reconciling items/adjustment of? BOOK BANK / / / / / / / / / / / /

The books of NeverToShift Company disclosed a cash balance of P691,720 on June 30. The bank statement as of June 30 showed a balance of P556,800. Additional information that might be useful in reconciling the two balances follows:

Check No. 128 for P13,000 was erroneously recorded in the check register as P30,000. (exp add 17000) ang dineduct is 30000 instead of 13000 lang so understated  A customer’s note dated March 31 was discounted on April 12. The note was dishonored on June 29 (maturity date). The bank charged NeverToShift’s account for P142,650, which includes a protest fee of P420.  The deposit of June 24 was recorded on the books as P28,950 but it was actually a deposit of P29,850.  Outstanding checks totaled P98,850 as of June 30.  There were bank service charges for June of P2,100 not yet recorded on the books.  NeverToShift’s account had been charged on June 26 for a customer’s NSF check for P12,960.  NeverToShift properly deposited P6,000 on June 30 that was not recorded by the bank.  Receipts of June 30 for P134,250 were recorded by the bank on July 2.  A bank memo stated that a customer’s note for P45,000 and interest of P1,650 had been collected on June 27 and the bank charged a P360 collection fee. 8. How much is the correct cash balance at June 30? a. P564,200 b. P597,780 c. P598,200 / d.P596,400 

9. How much is the net adjustments to the cash account a. P41,400 credit b. P41,400 debit c. P93,520 credit

d. P93,520 debit

The following information is available for the Dodoy Company on March 31 of the current year: Bank statement balance, March 31 – P146,570 Cash book balance – ? Note collected by bank, including interest of P2,500, not yet taken up on the books- P62,500 NSF check returned with the bank statement – P21,260 Outstanding checks as of March 31 – P68,470 Bank service charges for March – P1,285 Credit memo for interest credited by bank for the month of March – P105 10. What is the correct cash balance at March 31? a. P38,145 b. P78,100

c. P78,205

d. P76,815

11. What is the unadjusted cash book balance? a. P40,040 b. P38,040

c. P21,400

d.P 41,010

At the end of the month, the bank statement of Scottie Company showed a balance of P102,000, service charges of P6,000, a customer’s no-sufficient fund check of P20,000, and the proceeds of note collected by the bank for Scottie Company. The note had a face value of P15,000. Scottie company reported a balance of P128,000 in its cash account at the end of the month. At this time, there were P28,300 deposits in transit and P12,000 of outstanding checks. 12. How much is the interest on the note collected by the bank? a. P13,000 b. P8,700 c. P3,000 d. P1,300 Thompson Company banks with ABC bank and prepares reconciliation of the bank and book balances on a regular monthly basis. The December 31, 2018 reconciliation shows a balance per bank of P581,050, balance per books of P627,000, outstanding checks of P84,300, deposits in transit of P120,000, interest earned on the bank balance of P1,250, and a service charges of P400. Included in the bank statement was a canceled checks which the company had failed to record. The check was in payment of accounts payable. 13. What is the amount of unrecorded check issued by the company in payment of accounts payable? a. P8,600 b. P11,000 c. P11,100 d. P11,900

Proof of Cash Below is the bank reconciliation for July 2018:

Balance per bank, July 31, 2018 Add: Deposit in transit TOTAL Deduct: Outstanding checks Erroneous bank credit Cash balance per books, July 31, 2018

P750,000 120,000 P870,000 P140,000 50,000

190,000 P680,000

The bank statement for August 2018 contains the following data: Total deposits- P550,000; Total charges (including a no sufficient fund check of P40,000 and service charge of P2.000)- P480,000. All outstanding checks on July 31, 2018 including the bank credit were cleared in the bank in August 2018. There were outstanding checks of P150,000 and deposits in transit of P190,000 on August 31, 2018. 14. How much is the unadjusted cash balance per books on August 31, 2018? a. P902,000 b. P860,000 c. P820,000 d. P738,000 15. How much were the cash receipts per books during August 2018? a. P860,000 b. P680,000 c. P620,000

d. P240,000

16. How much were the cash disbursements per books during August 2018? a. P490,000 b. P400,000 c. P398,000

d. P378,000

17. What is the correct cash balance at August 31, 2018? a. P902,000 b. P860,000 c. P820,000

d. P802,000...