CHAPTER 7 Problem 7-1 Requirement 1 a. Accounts receivable 200,000 Cash in bank 200,000 b. Cash in bank 250,000 Accounts payable 250,000 c. Cash in bank 100,000 Accounts payable 100,000 d. Accounts receivable 450,000 Cash 450,000 Requirement 2 Cash in bank per book 3,000,000 Customer check outstanding for 18 months ( 200,000) Undelivered check 250,000 Postdated check delivered 100,000 Collection on January 2017 recorded on December 31, 2016 cC 450,000) Adjusted cash in bank 2,700,000 Time deposit - 30 days 1,000,000 Petty cash fund —.20,000 Total cash and cash equivalent 3,220,000 Requirement 3 The money market placement of P2,000,000 due on June 30, 2017 should be separately shown as current asset. The sinking fund of P1,500,000 is presented as noncurrent asset. Problem 7-2 Requirement 1 a. Accounts receivable 150,000 Cash on hand 150,000b. Expenses Receivable from employee Petty cash fund 15,000 Requirement 2 Cash on hand Postdated check Adjusted cash on hand Petty cash fund Unreplenished petty cash expenses (10,000) Postdated employee check Adjusted petty cash Cash on hand Petty cash fund Security Bank current account PNB current account Bond sinking fund 2,500,000) Total cash and cash equivalents 6,885,000 Requirement 3 10,000 5,000 1,000,000 (150,000) 850,000 50,000 (3,000) 35,000 850,000 35,000 2,000,000 1,500,000 *The BSP 120-day treasury bill of P3,000,000 is separately shown as current asset. “The overdraft in BDO current account of P200,000 is shown as current liability. “The BPI Time deposit of P2,000,000 is shown as noncurrent investment because itis restricted for land acquisition. Problem 7-3 Requirement 1 a. Accounts receivable (100,000 + 150,000) Cash on hand b. Advances to employees Cash short or over Petty cash fund 15,000 . Cash in bank (200,000 + 300,000) Accounts payable Requirement 2 Cash on hand NSF customer check Postdated customer check 250,000 250,000 10,000 5,000 500,000 500,000 1,000,000 ( 100,000) (150,000)Adjusted on hand 750,000 Currency and coins Check drawn payable to petty cashier Adjusted petty cash Cash in bank Undelivered company check Postdated company check delivered 300,000 Adjusted cash in bank 4,500,000 Cash on hand Petty cash fund Cash in bank Saving deposit 2,000,000 Total cash Problem 7-4 Requirement 1 Cash on hand NSF customer check Postdated customer check Adjusted cash on hand Petty cash fund: Currency and coins Philippine Bank current account 5,000,000 Undelivered company check Postdated company check delivered 45,000 Adjusted balance Cash on hand Petty cash fund Philippine Bank current ity Bank current account No. | City Bank current account No. 2 Asia Bank saving deposit 250,000 Asia Bank time deposit Total cash and cash equivalent Requirement 2 1, Accounts receivable Cash on hand 50,000 ¢ 2,000 33,000 35,000 4,000,000 200,000 750,000 35,000 4,500,000 7,285,000 200,000 (35,000) (15,000) 150,000 5,000 25,000 5,070,000 150,000 5,000 5,070,000 4,000,000 100,000) -2,000,000 11,375,000 50,000