Chapter 7" - Cash and Cash EoulualgntF

MC44 D Petty cash fund P1,500

Customer's certilied check s.000
Unrestricted demand deposits 486,000
Undeiivered checks written and recorded 12,000
Total cash E504,500

MC45 D Cash account balance P96,000

Post-dated customer's check included in the cash receipts (4,000)
Undelivered check included in the cash disbursements 7.000
Correct cash balance Pgg-OOO

MC46 C Balance, end, per bank (650,000 + 1,300,000 - 1,100,000) P850,000

Deposit in transit, June 30 150,000
Outstanding checks, June 30 (84,000)
Check deposit omitted by bank 7,500
Correct cash balance P923.500
OR
Baiance per books, June 30 P794,800
Note collected by bank 180,000
Service charge (6,000)
NSF check returned (48,000)
Customer's check for P37,400 recorded as P34,700 2Jeg
Corect cash balance P923,500

MC47 D June receipts reported per books P 1, 154,800

Note collected by bank 180,000
Customer's check for P37,400 recorded as P34,700 2.700
Corrected June receipts Pl'33-2*500
MC48 June disbursements reported per books P1,123,500
May service charge (4,s00)
June service charge 6,000
May NSF check returned (s6,000)
June NSF check returned 48.000
Corrected June disbursements ELLIZpOO
MC49 Outstanding checks, end P25,000
Checks cleared 224,200
Outstanding checks, beginning (7B,2OO\
Checks issued/Disbursements per books PLZLpOO

MCSO December deposits per bank P261 ,000

Deposit in transit", beginning (4I ,500)
Erroneous bank charge in November cleared (credited) in December (1s,000)
Cash receipts per books E2O!I5O0

MC51 D Balance per bank, December 31 P217,20Q

Outstanding checks (2s,000)
Cash balance per books, December 31 9p2,299
MC52 C Correct cash balance (45,000 + 10,000 + 8,000) P63,000
Balance per bank before outstanding checks
(34,000 - 300 - 3,200 - 3,600 + 2,740) 29,600
Outstanding checks P33,40-o

15
Chapter 7 - Casl] and. Cash.Eoulaalents

1-16. (Amethyst Corporation)

Balance per bank statement P169,263
Deposit in transit, April 30 18,200
Outstanding checks, April 30 ( s9,435)
Erroneous charge by bank 2,200
NSF checks not yet redeposited (3,435 * 1,835) 1,600
Proceeds of note collected by bank ( 7,548)
Bank service charge 180
Unadjusted book balance for cash, April 30, 2019 ilzLlhB

L-L7. (Silver Company)

Balance per bank statement P380,750

Deposits in transit s2,000
Outstanding checks (67,500 - 9,000) (58, s00)
Erroneous credit by bank ( 4,000)
Check of Silver Lining charged by bank to Silver Co,,s account 1.2,000
Correct cash balance P382.2sO

1-19. Cash balance per books, March 1 P1 15,963.70

Cash receipts during March 246,475.OO
Cash disbursements during March (334,709.10)
Bank service charge for March t92.00)
Cash balance per books at March 31 P 27.637.60
Cash balance per bank statement P15,341 .40
Deposit in transit 9,000.00
Outstanding checks (2.703.80)
Cash balance reflected per bank 2l,637 .60
Suspected cash shortage (undeposited collections) P _6-000-00

1-19. (Pearl Corporationl

Balance per bank statement P400,000

Add receipts of 12/3t / t9 not yet deposited 100.000
Balance per bank statement before outstanding checks P500,000
Balance per books P387,000
Bank service charge for December (1,000)
Paid check for P40,000 recorded as p4,000 (36,000)
Customer's check returned by bank marked DAIF (22.000) 328,000
Outstanding checks at December 31 , 2019 P172.OOO

Prool
Per bank Per books
Reported balances P400,000 P387,000
Receipts not yet deposited 100,000
December bank service charge (1,000)
Paid check for P40,000 recorded as p4,000 (36,000)
Customer's check returned by bank (22,000)
Outstanding checks at December 31 (172,000)
Correct cash balance P328-OO0 P328pOO
 Chapter 7 - Cash and C?slt Equtualents

L-2O. (ABC Services, tnc.)

",
o . ffr.,jxl".?,1 I i i,,,
November "
3O-December 31 , "20I9
December December
Nov. 30 Receiprs Disbursements
Balances per bank statement Dec. 3 i
P294,771.O0 P1,065,620.00 Pl,211,405.00 P148,986.00
Receipts not yet deposited
November 30 21,270.OQ (21,27O.0O)
December 31 32,925,OO
Outstanding checks 32,925.OO
November 3O (40,s2s.00) (40,s2s.00)
December 31
Erroneous charge by bank 35,191.s0 (3s, 19 i.s0)
(625.00) 62s.OO
Correct balances PZ75tl5_00 P1_011215*Oe 81205.44A50 P141-344_59
Baiances per books P270,311.00 P1,072,850.00 Pi,195,536.50 Pt47 ,624,50
Bank service charges
November 30 (2es.00) (2es.00)
December 31
Interest credit by bank 158.00 (1s8.00)
November 3O s,500.00 (s, s00.00)
December 31 4,92s.00
Uncollectibie customer,s check 4,925.00
NSF returned and redeposited
5,947.OO (s,947.00)
in Deeember 5,000.00
Check #l3Z4l2 for p2,300 5,000.00
recorded as p3,200 in error
Correct balances L2Z5 I,6AO PwZJILAU
t900.00) 900.00
Pr-205-44050 Pl41-344-58

L-2L. (Brulns Company)

Bruins Company
Proof of Cash
March 3i - Aprii 30, 2019
April
Balances per bank statement
March 3t oH'J," Disbursements April 30
P2,203,500 P5,251 ,500 P4,3s7,750 P3,097,2s0
Outstanding checks:
March 31 (27s,000) (27s,0oo)
April30
Deposits in transit s80,000 (sso,000)
March 31 L2s,Q00 (12s,000)
April30 670,000
Erroneous bank credit 670,000
(20,000) (20,000)
Undeposited receipts
Erroneous bank debit memo
Adjusted balances

Balances per books P2,0s5,300 Ps,567,000

Note collected by bank in April P4,619,800 P3,002,500
17,000 17,000
Bank service charges
March (i,800) (1,800)
April
Company's note discounted with 2,450 (2,4s0)
the bank 200,000 -
(200,000 x72o/ox6/l2l
188,000 188,000
Overstatement in book
disbursements
Understatement of April receipts (2,7OO) t,700
4.500 4,500
Adjusted balances
P2'Q53*5OO P5.776.s00 PA_6UJSA rc2r2:2s9
9
 Chaoter 7 - Casb and Cash Equlualents

L-22. (Lily Company)

(a) August deposits per bank statement
P275,000
Deposit in transit at August 31
3s,000
Deposit in transit at July 3l
(40,000)
Note collected by bank in behalf of Lily Company
150.000i
Cash receipts per books during August
P220,OAO
(b) August disbursements per bank statement
P220,OOO
Outstanding checks at August 31
2s,000
Outstanding checks at July 31 (60,000)
Erroneous bank credit in July corrected in August
(10,000)
NSF check
(3s,000)
Service charge by bank (1.s00)
Cash disbursements per books during August
P138500
(c) Balance per books at July 31
P150,000
Cash receipts per books (see a)
220,O00
Cash disbursements per books (see b) (138,s00)
Unadjusted cash balance per books at August 3l P2-3_rcAO
or
Unadjusted bank statement balance at August 31
(180,000 + 275,000 - 22O,oool
P235,000
Outstanding checks, August 31
(2s,000)
Deposits in transit, August 31
35,000
NSF check
3s,000
Bank service charges
1 ,500
Noto coilected by bank (s0,000)
Unadjusted cash balance per ledger at Augusr 3l Prc]-sOA
(d) Unadjusted bank statement balance
P235,000
Outstanding checks
(2s,000)
Deposits in transit
35.000
Correct cash balance at August 31
or P245JOO

Unadjusted cash balance per books

P231,500
NSF check
(3s,000)
Bank service charges
(1,s00)
Note collected by bank
Correct cash balance at August 31 50,000
P245-000

L-23. (Leo Company)

a. Outstanding checks, July 31,2019

Disbursements per books during August
P 6,400
349,000
Checks cleared during August ( 344,000)
Outstanding checks, August 3 1, 2019
P_ 11.400
b. Deposits in transit, August 3l,2Ol9
P 40,000
Deposits per bank records during August
320,000
Cash receipts per books during august ( s50,000)
Deposits in transit, July 3I,2olg
P_1!_00a

10
Chapter 7 - Cosh and Cash Equ@kntE

L-24. (VAB, Inc.)

Outstanding checks at April 30 P 30,000
Add cash disbursements per books:
Total credits in all journals during May P90,000
Less Service charge in April recorded in May ( 1,000) 89,000
Total P119,000
Less checks cleared during May:
Checks and charges by bank in May P80,000
Less: May service charge (500)
NSF check returned as a bank
charge in May (10,000) 69.500
Outstanding checks at May 31 P- ii,sQO

l-25. (DiamondCompany)

Deposits in transit at July 31 P 4,500

Receipts per books (40,000 - 5, i20) 34,880
Deposits per bank (45,600 - 6,300 - 10,000)) t29.300)
Deposits in transit at August 31 P 10*080

Proof: August Receipts

Per bank Per books
Reported receipts/credits P45,600 P40,000
Deposits in transit, July 31 (4,s00)
Note collected by bank in August 6,300
Note collected by bank in July recorded
by the company in August (s,120)
Erroneous charge by bank in July
corrected in August (10,000)
Deposits in transit at August 31 (see above) 10,080
Correct totals P4 1.180 P4 I .1 80

L-26. (Real Gem Company|

Outstanding checks, l2l31l 19 P37,855,00
Add checks cieared by bank during December
Bank disbursements during December P62,277.OO
Outstanding checks, \1130119 (24,75O.OO)
Erroneous bank credit in November
cleared in December (9,218,001 28.309.00
Cash disbursements per books during December P66*f64-OO

L-27. (Lira Company)

Deposits in transit, Arrgust 31 P 9,500
Add cash receipts per general ledger 30,500
Less deposits per bank (30,200)
Deposits in transit, September 3O P 9*800
Outstanding checks, September 30 P 2,000
Add checks cleared by bank during September 23,600
Less cash disbursements per general ledger (24,OOO\
Outstanding checks, August 31 P--]-6OO

11
Chapter 1 - Cash and Co,sh Equlaalents

L-2a. (Euro Company)

(a)
Petty Cash Fund
Currency and coins P 1,490
Replenishment check 1,830 P 3,320
Cash on hand
Reported amount P 19,700
Less: Customer's NSF check returned (s,000)
Customer's post dated check [1.s00) 13,200
Cash in Metrobank
Reported amount P110,200
Add: Undelivered check #1214 2,s00
Post dated check #7219 4,300 1 17,000
Cash in Allied Bank
General account P162,000
Less credit balance in payroll account (4,000) 1s8.000
Correct cash balance P291.520
(b)
Current assets:
Cash and cash equivalents (see Note #, #) P29t,520
Receivable from employees 880
Non-current assets:
Cash Fund lor Equipment (see Note#) 65,000
Note A right of offset exist in the agreement between Allied Bank and its depositors.

Note Cash and cash equivalents consist of the foilowing:

Petty Cash Fund P 3,320
Cash on Hand 13,200
Cash in Metrobank - Current 1 17,000
Cash in Allied Bank - Generai (net of an overdraft in
Payroll account of p4,000) 158,000
Total cash and cash equivalents P294*529
Note # The cash fund for equipment is kept in a savings account in Security Bank. Said amount
is expected to be disbursed in March 2020.

t2
Chapter 7 - Cas4o,nd Cash Equlaalents

MULTTPLE CHOTCE QUESTTONS

Theory

MC1 A MC6 D MC1 1 D MC 6 C MC2 1 A

MC2 A MC7 A MC12 D MC 7 C MC22 B
MC3 C MC8 A MC13 C MC 8 C MC23 D
MC4 D MC9 A MC14 D MC I R MC24 B
MC5 D MCiO D MC15 A MC2O B MC25 D
MC26 D

Problems

MC27 C Cash in banks P2,250,000

Cash on hand 125.000
Total cash P2.375.OOO
MC28 D Checkbook balance P50,000
Check payable to Bataan properly dated but not included in
checkbook balance 20.000
Correct cash balance Pzo.OOO

MC29 C Correct cash balance in Equitable-pCIBank P320,000

Currency and coins in petty cash fund sB0
Cash balance, April 30 P320$580
MC3O B Cash balance per ledger P682,250
Notes receivable in the possession of a collecting agency (2s,000)
Post-dated check included in the undeposited receiprs (10,s00)
Bond sinking fund cash ( 1 27, s00)
IOUs signed by employees (4,9s0)
Paid vouchers not yet recorded
[6,4s0)
Correct cash on hand and in banks P507.8sO
OR
Petty cash fund P 3,600
Checking account in Metrobank 336,7s0
Undeposited receipts (178,000 - 10,500) 167.,500
Correct cash on hand and in banks P5-0z.85-o
MC31 D Replenishment entry is
Expenses 9s0
Cash short or over 50
Cash in bank l,OOO

MC32 Currencies P3,800

Coins 1,200
Company check payable representing salary (accommodation check
to petty cash custodian 12,500
Correct amount of petty cash fund P17.500

MC33 c Cash in the fund P 440

Miscellaneous expenses 3,640
Total P4,080
Amount of fund established 4.000
Cash overage P80

13
Chapter 7 - CaFh and Cash Equlaalents

MC34 B Total biils and coins P1,825

Certified check of general manager 1,500
Replenishment check 5,150
Correct amount of petty cash fund P8.475
MC35 A Amount of petty cash fund established P 10,000
Total amount in the drawer
Correct petty cash fund P8,475
Petty cash vouchers not yet replenished 1.430 9.905
Amount of cash shortage P __95
The unused postage stamps of P120 is part of the p28o postage stamps purchased
This means that Pl20 will be reported as part of prepaid expenses, whereas p160
will be reported as an operaring expense.
MC36 D Corrected bank statement balance (50,000 + 20,000 - 1 5,000) P55,000
Correct balance per books before consrdering interest on note
(43,000 - 6,000 + 15,000) s2,000
Interest on the note collected by the bank P_3-OOO

MC37 B Balance per bank statement P 1 80,500

Deposit in transit 32,500
Outstanding checks (27.sOO)
Correct cash balance P185,500
MC3B B Balance per books P677,600
Bank service charges (sB0)
Check for P8,900 paid by bank but erroneously recorded
in the books as P9,800 900
Correct cash in bank balance P677p29
OR
Balance per bank statement P6s3,230
Outstanding checks (98,760)
Deposit in transit 123,450
Correct cash in bank balance Pila,g2a
MC39 B Petty cash fund (10,000 - 4,500) P 5,500
Currency and coins counted (undeposited collections) 9s,000
Correct cash on hand balance Ploo,500
MC4O Deposit in transit, beginning P17,000
Receipts reflected in the books 490,000
Deposits reflected per bank (476.0001
Deposit in transit, ending P31.OOO

MC41 A Outstanding checks, beginning P39,000

Checks issued (per books) 490,000
Checks cleared by bank (617,000 - 15,000) 1602,000)
Outstanding checks, ending P47.OOO

MC42 C Pre-adjustment cash balance per books P768,370

Net credit adjustment per books (t32,274)
Outstanding checks 20.750
Bank statement balance P656-8!+6
MC43 B Unadjusted cash balance per books P450,000
Collection by bank 9,400
Customer's NSF check returned by bank (3,200)
Customer's check for P4,500 erroneously recorded as p5,400 (e00)
Check written for P79O erroneously recorded as p970 180
Correct cash balance P4553eO
L4
 CHAFTER 1
CASH AND CASH EQUIVALENTS

PROBLEMS

1-1. Classification of accounts

1.A 6.A 11. A 16 A
2.A 7, B 12. B 17. B
3.A 8.B 13. A 18. B
4,8 9.8 14. A t9. A
5.A 10. A 15. A 20. B

l-2. (Money Company)

Cheeking account in Metrobank P105,200

Savings account at Far East Bank 30,800
Petty cash fund (1,500 - 250) 1,250
Cash on hand (undeposited sales receipts) 4,200
Cash in foreign bank (in equivalent pesos) 65,000
Customers' check on hand:
Traveler's check 14,000
Manager's check 23,120
Unreleased check payable to supplier but recorded as disbursement 62,000
Total amount of cash P385*5ZO

Ahernative computa rion :

Reporred tota I
P330,820
Adjustments: Sinking fund cash 3s,000)
Short term treasury bi1ls 52,000)
Unreplenished petty cash expenses 2s0)
Unreleased check payable to supplier but recorded as disbursement 62.00!
Correct cash balance P30s-570
The outstanding checks of P15,200 was ignored since the given balance of cash is a cash balance
per books' Short-term treasury bills of P52,000 is reported as parr of trading securiries unless
there is an indication of a maturity of three months or less in which case, they are included as
part of cash and cash equivalents. The unreleased check payable to supplier and recorded in the
cash disbursements journal should be restored back to cash. Meanwhile, sinking funcl cash of
P35,000 is reported as a noncurrent financial asset,

1-3. (Cotton Company)

(a)
Reported checkbook balance Pl BO,OOO
Adjustments:
Customer's post dated check included in the balance ( 6s,000)
Customer's check returned by bank marked DAiF ( 20,000)
Company check recorded but not yet mailed 15,000
Cash reported on December 31 , 2019 statement of linancial position P] taJAO
(b) Accounts Receivable 65,000
Cash in Bank 6s,000
Accounts Receivable 20,000
Cash in Bank 20,000
Cash in Bank 15,000
Accounts Payabie 15,000
thapter 7 - Cash and Cash 4qulaalents

L-4. (Grain Company)

(a)
Balance per general ledger P2,205,600
Non-cash items:
Customer's DAIF checks returned by bank P 20,000
Cash in BDO earmarked for purchase
of equipment 750,000
IOUs from employees s,200
Cash in sinking fund s00,000
Customers' post dated checks 25,400
Travei advances 8,000 1,308,600
Correct cash balance P 897,000
Customers' DAIF checks, IOUs and customers' post dated checks are reported as receivables;
travel advances are prepaid expenses; while savings account in BDO earmarked for ollice
equipment and cash in sinking lund are reported as noncurrent linancial assets. No adjustment
was made on undeposited checks from customers and traveler's checks since they are proper
inclusions in the cash balance.

(b)
Accounts Receivable (20,000 + 25,400) 45,400
Receivable from Employees 5,204
Prepaid Travel Expense 8,000
Cash Sinking Fund 500,000
Cash Fund for Equipment 750,000
Cash 1,308,600

1-5. (Rod Company)

Petty cash (10,000 - 1,250) P 8,750

Cash on hand (625,000 - 17;5001 607,500
Cash in bank- General (525,000 + 12,500) 537,500
Cash in bank, Payroll (320,000 + 10,000) 330,000
Total P]-4B3*75O

IOU from an employee and customers'post dated check are receivable items; the bank overdraft
in another bank is reported as a current liability (offset can be made only if the accounts are with
the same bank); the savings deposit is a non-current item since it is intended lor a non-current
purpose (for plant acquisition).

Alternative computation :

Reported total P1.980,000

Adjustments:
IOUs from employees (1,250)
Customer's post-dated check (17,500)
Overdraft in another bank 12,500
Unreleased check deducted in payroll account 10,000
Savings deposit intended for equipment acquisition (500,000)
Correct amount of cash P1.483.750

2
Chapter 7 - Cash and Cash Equiaalents

1-6. (Latte Company)

Cash and cash equivalents:

Savings account with Allied Bank
Per books P 900,000
Customer's postdated check (320,000) P580,000
Checking account with Allied Bank
Per books Pi,400,000
Issued postdated check s00.000 1,700,000
Bills and coins in the petty cash lund 9,850
Money market fund with BDO that allows check writing 2,000,000
Certificate of deposit with term of 90 days 1,000,000
Payroll fund with BDO
Per books p6,000,000
Unissued but recorded check 50.000 6,050,000
Cash balance with BPI 5,0001000
Correct cash and cash equivalents P 16,339,850
The items not included in cash and cash equivalents shall be presented as follows:

Bxpenses in the statement of comprehensive income (p150 cash

shortage in petty cash lund + expense receipts of p5,000) P 5,1 50
Current assets:
Certificates of deposit (with term of 120 days) 2,000,000
Accounts receivable (customer's postdated check) 320,000
Non-current assets:
Cash fund for retirement of bonds payable 1,500,000
Current liabilities
Accounts payable (PDC issued to supplier) 300,000
Salaries payable (unissued check to employee) 50,000

L-7. (Jessie Company)

Nov. 20 Petty Cash Fund 5,000

Cash in Bank 5,000
Nov. 20 to No entrv
Dec.15
Dec. 16 Tran sportation Expense 1,500
Representation Expense 1,200
Freight-in 1,300
Repairs Expense 920
Cash in Bank 4,920
Dec. 16 -31 No entry

Dec.31 Transportation Expense 340

Supplies Expense 1,400
Petty Cash Fund 1,7 40
Jan. 1 Petty Cash Fund t,740
Transportation Expense 340
Supplies Expense 1,400
Jan. 1-8 No entry
thqpter I - Cqsh and Cgsh Equlaslents

Jan, 9 Transportation Expense (340 + 120) 460

Supplies Expense (1,400 + i,3OO) 2,700
Representation Expense 1,800
Cash in Bank 4,960
9 Petty Cash Fund 3,000
Cash in Bank 3,000

1-8. {Coral Companyl

(a) Petty cash fund P5,000,00
Amount of cash on hand P 670.40
Total petty cash vouchers:
Office supplies P 341,60
Postage 780.00
Representation 1,000.00
Transportation t,32r.40
Miscellaneous 837.60 4.280.60 4.9s1,00
Shortage in the petty cash fund P_i19-00
(b) Office Supplies Expense 341.60
Postage Expense 780.00
Representation Expense 1,000.00
Transportation Expense I,s21.40
Miscellaneous Expense 837.60
Cash Short and Over 49.00
Petty Cash Fund 4,329.60

1-9. (Prada Company)

1. May 2 Petty Cash Fund 8,000

Cash in Bank 8,000

2. May 2-2O No entry

3, No entry

4. May 20 Freight-in 2,s00

Freight-out 3,000
Supplies Expense 800
Cash in Bank 6,300
5. No entry
6. May 31 Freight in t,200
Transportation Expense 1s0
Employee Benefit Expense ?rn
Receivable from Employees* 630
. Petry Cash Fund (8,000 - 5,700) 2,300
.(lOU oi 500 + short of 130)

Per count
Bills and coins P5,700
Paid petty cash vouchers
(1,200+15O+320+500) 2.t7Q
Total P7,870
Petty cash fund, imprest balance 8,000
Cash shortage P 130
Chapter 7 - 9ash and .Co,sh Equlaalents

1-10. (Canon Company)

(a) Bills and coins P1,450

PCVs dated July 1-4, 2019 (undisbursed as of June 30) 800
Adjusted balance of petty cash fund 2,250
Unreleased payroll {I,s00)
Correct petty cash balance P,_250
(b) Per count
Bills and coins P 1,450
PCVs dated June 3,300
PCVs dated Jul5r 800
IOU from an employee 1,400
Empioyee's post dated check 2.000
Total per count P 8,950
Cashier's accountability
Petty cash fund P10,000
Unreleased payroll 1,s00
Total accountabiiity 1 1,soQ
Cash shortage P2*550
(c) Miscellaneous Expenses 3,300
Receivable from Employees (1,400 + 2,000) 3,400
Cash Short/Over 2,550
Petty Cash Fund 9,2sO

t-11.
(a)

Bills and coins P4,560

Petty cash vouchers dated January 2O2O 1,130
IOUs dated January 2O2O 1.000
Total P6,690
Unreieased payroil (2,000)
Correct petty cash lund baiance, December 3l,20lg P4*690
(b) Per count
Bills and coins P4,560
Paid PCV's
dated Dec. 2019 3,140
dated Jan. 2020 1, 130
IOUs
dated Dec. 2019 1,800
dated Jan. 2020 1.000
Total per count P1 1.630

Cashier's accountability
Petty c'a.sh fund P10,000
Unreieased payroil 2.000
Total accountabiiity P12,000
Cash shortage P _3ZO

(c) Expenses 3,140

Receivables from Employees 1,800
Cash Short/Over 370
Petty Cash Fund 5,310
Chapter 7 - Casb aruf, 9aslt.Equlvalents

L-L2. (Giordano Corporationf

(a)
Giordano Corporation
Bank Reconciliation Statement
December 3l , 2019

Balance per bank statement Pt99,925

Add: Cash on hand for undeposited receipts P 13,02s
Deposit in transit 35.000 48.025
Total P252,950
Deduct: Outstanding checks 204,055
Adjusted cash balance P_43.895

Balance per books P(32,s60)

Add: Note receivable collected by bank; incl interest of P2,500 2s2,s00
Total P219.940
Deduct: Customer's NSF check returned by bank P42,040
Customer's check for P29,O4O erroneously
recorded as P94,020 64,980
Cash sales missing 64,O25
Petty cash fund 5,000 t76.O45
Adjusted cash balance P 43-895

(b) Adjusting entries:

Cash in bank 252,500

Notes Receivable 250,000
Interest Revenue 2,s00

Accounts Receivable (42,O4O + 64,980) 1O7,020

Loss from Theft 64,025
Pett5r Cash Fund 5,000
Cash in bank t76,O45

Miscellaneous Expenses 1,800

Petty Cash Fund 1,800

Total Cash on the statement ol linancial posirion:

Petty cash fund of P3,200 + Cash in bank of P43,895 P47.O95

1-13 David Corporation

(a) Deposit in transit (amount debited in the books on

November 30, 2019 but not yet credited in the bank records P35.000

(b) Check #2L26I'3 P 5,000

Check #212614 4,000
Check #2L2616 16,000
Total outstanding checks, November 30,2otg P25-0AO
Chapter 7 - Co,slt and Cash Equlaalents

(c)
David Corporation
Bank Reconciliation Statement
November 30. 2019
Balance per bank statement P235,000
Add Deposit in transir 35,000
Total P270,000
Deduct Outstanding checks 2s,000
Adjusted cash balance P245-000
Balance per books P229,700
Add: Note collected by bank P50,000
Check #212612 for P13,500 erroneously recorded as p1S 300 _ 1,800 51.800
Total P28 1 ,500
Deduct: Not suflicient fund check returned bv bank P35,000
Bank service charge 1,500 36,500
Adjusted cash balance P245-OOO

L-L4. (Pound Company)

(a) Per Baqk Per ,Books
Balances before adjustments P31,B4B Pt7,194
Bank service charge ( 10e)
Debit memo for printed checks ( 225)
Outstanding checks (6,7281
Deposit ofJuly 31 not yet recorded by bank 4, BBO
Proceeds of a bank loan, net of P300 interest 5,700
Proceeds from customer's note, including P100 interest 8,1 00
Check #1210 for P2,100 erroneously deducted by bank as p1,2OO (e00)
Stolen check lacking authorized signature deducted by bank in error 800
Customer's NSF check returned by bank (760\
Correct cash balance P2e-900 P2epQo
(b)Adjusting entry at July 31, 2019 (compound form)

Miscellaneous Expenses (109 + 1251 234

Accounts Receivable 760
Interest Expense 300
Cash in Bank L2,8A6
Bank Loan 6,000
Notes Receivable 8,000
Interest Revenue 100

1-15. (Bench Companyl

Per Bank Per Books
Balances before adjustments P892,346.30 P590,884.60
Outstanding checks (333,788.20)
Receipts of 12 / 31 / 19 deposited on 1 I 2 I 20 53,t72.0O
Service charges for D6cember ( 22s.00)
Proceeds of bank loan omitted lrom co. records 97,000.00
Deposit of 12 123 I l9 omitted from bank records 28,924.10
Check of Rome Products charged lor lack of counter signature (8,737.401
Bank error for a deposit ofp31,824 recorded as p31,g14 i 0.00
Check of Birch Company erroneously charged by bank 26,900.00
Proceeds of note collected by bank 20,350.00
Erroneous debit by bank for bank loan paid by the co, 50,000.00
Bank error for a deposit ofp48,071 recorded as p4g,171 ( 100.00
Deposit of Birch Co. erroneousiy credited by bank (18.1e2.00)
Adjusted cash balance P699.272.20 P699.27 2.20