Prob 1-2

Dec-31 Accounts receivable 150,000

Cash on hand 150,000

Petty cash fund 50,000

unrepenished petty cash voucher 10,000
employee check 5,000
Total petty cash fund 65,000

Cash on hand 1,000,000

Customer postdated check - 150,000
Total cash on hand 850,000
Petty cash fund 65,000
Security bank current account 2,000,000
PNB current account 1,500,000
Bond sinking fund 2,500,000
Total cash and cash equivalent 6,915,000

NCA
BSP treasury bill - 120 days 3,000,000
BPI time deposit - 90 days 2,000,000

Liab
BDO current account (overdraft) 200,000

Prob 1-3
Dec-31 Accounts receivable 100,000
Cash on hand 100,000

Accounts receivable 150,000

Cash on hand 150,000

PCF
Currency and coins 2,000
Check drawn by armenia payable to petty cashier 33,000
Total PCF 35,000

Cash in bank 200,000

Accounts payable 200,000

Cash in bank 300,000

Accounts payable 300,000

Cash on hand 1,000,000

insufficient customer check - 100,000
postdated check - 150,000
Total cash on hand 750,000
Cash in Bank 4,000,000
undelivered check 200,000
postdated check 300,000
Savings deposit 2,000,000
Total cash in bank 6,500,000
Petty cash fund 35,000
Total Cash 7,285,000
Prob 1-4
Dec-31 Accounts Receivable 35,000
Cash on hand 35,000

Accounts receivable 15,000

Cash on hand 15,000

Petty cash fund 20,000

iou's from officers - 2,000
unreplenished petty cash vouchers - 12,000
total 6,000

Cash in bank 25,000

Accounts Payable 25,000

Cash in bank 45,000

Accounts payable 45,000

Cash on hand 200,000

insufficient customer check - 35,000
postdated check - 15,000
Total cash on hand 150,000
Cash in bank
undelivered check 25,000
postdated check 45,000
Total cash in bank 70,000
Petty cash fund 6,000
Ph bank current account 5,000,000
city bank current account no 1 4,000,000
city bank current account no 2 (overdraft) - 100,000
asia saving account 250,000
asia bank time deposit - 90 days 2,000,000
Total cash and cash equivalents 11,376,000

Prob 1-5
Fluctuating
Jan-02 Petty cash fund 10,000
Cash in bank 10,000

02 to 31 Postage 1,500
Supplies 5,500
transportation 1,200
miscellaneous expense 800
Petty cash fund 9,000

Feb-01 petty cash fund 9,000

Cash in bank 9,000

petty cash fund 5,000

cash in bank 5,000

imprest
Jan-02 Petty cash fund 10,000
 Cash in bank 10,000

Feb-01 petty cash fund 5,000

Postage 1,500
Supplies 5,500
transportation 1,200
miscellaneous expense 800
Cash in bank 14,000

Prob 1-6
Fluctuating
Petty cash fund 10,000
Cash in bank 10,000

Postage 1,500
supplies 3,000
petty cash fund 4,500

Transportation 1,000
accoounts payable 3,500
petty cash fund 4,500

Petty cash fund 9,000

cash in bank 9,000

Petty cash fund 10,000

cash in bank 10,000

imprest
Petty cash fund 10,000
Cash in bank 10,000

petty cash fund 10,000

Postage 1,500
supplies 3,000
Transportation 1,000
accoounts payable 3,500
Cash in bank 19,000

Prob 1-7
Fluctuating
May-02 Petty cash fund 10,000
Cash in bank 10,000

29 Postage 1,000
supplies 3,000
transportation 2,500
miscellaneous exp 1,500
petty cash fund 8,000

Petty cash fund 8,000

Cash in bank 8,000

Jun-30 supplies 2,000

postage 1,000
transportation 1,000
 petty cash fund 4,000

Jul-15 supplies 3,500

postage 1,500
transportation 1,500
miscellaneous exp 500
petty cash fund 7,000

Petty cash fund 12,000

Cash in bank 12,000

imprest
May-02 Petty cash fund 10,000
Cash in bank 10,000

29 Postage 1,000
supplies 3,000
transportation 2,500
miscellaneous exp 1,500
Cash in bank 8,000

Jun-30 supplies 2,000

postage 1,000
transportation 1,000
Petty cash fund 4,000

Jan-01 Petty cash fund 4,000.00

supplies 2,000
postage 1,000
transportation 1,000

Jul-15 Petty cash fund 5,000

supplies 3,500
postage 1,500
transportation 1,500
miscellaneous exp 500
Cash in bank 12,000

Prob 1-8
Nov-02 Petty cash fund 10,000
cash in bank 10,000

30 petty cash fund 10,000

postage 2,000
supplies 5,000
cash in bank 17,000

Dec-31 postage 3,000

supplies 4,000
deposit for 20 cases of softdrinks 2,000
petty cash fund 9,000

Jan-01 petty cash fund 9,000

postage 3,000
supplies 4,000
deposit for 20 cases of softdrinks 2,000
 Jan-02 petty cash fund 2,000
deposit for 20 cases of softdrinks 2,000

31 postage stamp 500

postage 5,000
supplies 6,000
payment of account 7,000
cash in bank 18,500

Prob 1-9
Dec-01 petty cash fund 10,000
cash in bank 10,000

20 vouchers for selling exp 5,000

vouchers for miscellaneous exp 2,000
vouchers for equip 2,000
cash in bank 9,000

31 postdated employee's check 2,000

vouchers for selling exp 1,500
vouchers for transportation 500
petty cash fund 4,000

Jan-01 petty cash fund 4,000

postdated employee's check 2,000
vouchers for selling exp 1,500
vouchers for transportation 500

15 petty cash fund 2,000

postdated employee's check 2,000

31 distribution cost 500

administrative exp 2,000
transportation 1,000
payment for supplier's invoice 1,200
cash in bank 4,700

petty cash fund on jan 31, 2020 8,000

Prob 3-9
Book Balance, Unadjusted June 30 2,100,000 Bank Balance, Unadjusted June 30 2,400,000
Add: Credit Memo 500,000 Add: DIT 500,000
Interest Income 50,000 Total 2,900,000
Total 2,650,000 Less: OC 400,000
Less: SC 50,000 total 2,500,000
NSF check 100,000
Book bal 2,500,000

Prob 3-10
Bank Balance, Nov 30 3,600,000
Add: Bank Credit 5,500,000
Total 9,100,000
Less: Bank debit 4,400,000
Balance per bank, Dec 31 4,700,000
Add: DIT 700,000
Less: OC 500,000
Bank Balance, Adjusted Dec 31 4,900,000

Nov-30 Cash Receipts Cash Disbursement Dec-31

Bank Balance 3,600,000 5,500,000 4,400,000 4,700,000
DIT Nov 800,000 - 800,000
Dec 700,000 700,000
OC Nov - 1,200,000 - 1,200,000
Dec 500,000 - 500,000
N/R Dec - 1,000,000 - 1,000,000
NSF Dec - 350,000 350,000
SC Dec - 50,000 50,000
Bank Error Dec - 200,000
3,200,000 4,400,000 3,100,000 4,300,000

Prob 3-11
Bank Balance, Jun 30 3,000,000
Add: Bank Credit 9,000,000
Total 12,000,000
Less: Bank debit 7,000,000
Balance per bank, Unadjusted Jul 31 5,000,000
Add: DIT 1,000,000
Less: OC 600,000
Bank Balance, Adjusted Jul 31 5,400,000

Jun-30 Cash Receipts Cash Disbursement Jul-31

Bank Balance 3,000,000 9,000,000 7,000,000 5,000,000
DIT Jun 400,000 - 400,000
Jul 1,000,000 1,000,000
OC Jun - 900,000 - 900,000
Jul 600,000 - 600,000
N/R Jul - 200,000 - 200,000
NSF Jul - 140,000 140,000
SC Jul - 10,000 10,000
2,500,000 9,400,000 6,550,000 5,350,000

Prob 3-12
Bank Balance, Jun 30 9,800,000
Add: Bank Credit 6,500,000
Total 16,300,000
Less: Bank debit 9,000,000
Balance per bank, Unadjusted Jul 31 7,300,000
Add: DIT 600,000
Less: OC 1,000,000
Bank Balance, Adjusted Jul 31 6,900,000

Jun-30 Cash Receipts Cash Disbursement Jul-31

Bank Balance 9,800,000 6,500,000 9,000,000 7,300,000
DIT Jun 400,000 - 400,000
Jul 600,000 600,000
OC Jun - 1,400,000 - 1,400,000
Jul 1,000,000 - 1,000,000
8,800,000 6,700,000 8,600,000 6,900,000

Prob 3-13
Bank Balance, Mar 31 4,650,000
Add: Bank Credit 6,000,000
Total 10,650,000
Less: Bank debit 5,000,000
Balance per bank, Unadjusted Apr 30 5,650,000
Add: DIT 1,500,000
Less: OC 750,000
Bank Balance, Adjusted Apr 30 6,400,000

Mar-31 Cash Receipts Cash Disbursement Apr-30

Bank Balance 4,650,000 6,000,000 5,000,000 5,650,000
DIT Mar 1,000,000 - 1,000,000
Apr 1,500,000 1,500,000
OC Mar - 1,250,000 - 1,250,000
Apr 750,000 - 750,000
4,400,000 6,500,000 4,500,000 6,400,000

Letters: 1 2 3 4
Prob 3-9 B D A
Prob 3-10 B D B C
Prob 3-11 D B A A
Prob 3-12 C A A A
Prob 3-13 D A B C
Prob 4-3
1. FOB Destination and Freight Collect
Accounts Receivable 500,000
Freight Out 10,000
Sales 500,000
Allowance for Freight Charge 10,000

Cash 475,000
Sales Discount 15,000
Allowance for Freight Charge 10,000
Accounts Receivable 500,000

2. FOB Destination and Freight Prepaid

Accounts Receivable 500,000
Freight Out 10,000
Sales 500,000
Cash 10,000

Cash 485,000
Sales Discount 15,000
Accounts Receivable 500,000

3. FOB Shipping Point and Freight Collect

Accounts Receivable 500,000
Sales 500,000

Cash 485,000
Sales Discount 15,000
Accounts Receivable 500,000

4. FOB Shipping point and Freight Prepaid

Accounts Receivable 510,000
Sales 500,000
Cash 10,000

Cash 495,000
Sales Discount 15,000
Accounts Receivable 510,000

Prob 4-4
1 Accounts Receivable, 2/10, n/30 4,000,000
Sales 4,000,000

2 Cash 1,470,000
Sales Discount 30,000
Accounts Receivable 1,500,000

3 Cash 1,000,000
Accounts Receivable 1,000,000

4 Allowances for Sales Return 100,000

Accounts receivable 100,000

5 Sales Return 20,000

Allowance for Sales Return 20,000
Prob 4-5
Jun-15 Accounts Receivable, 2/10, n/30 4,500,000
Sales 4,500,000

Jun-25 Cash 4,410,000

Sales Discount 90,000
Accounts Receivable 4,500,000

Jul-10 Cash 4,500,000

Accounts Receivable 4,500,000

Prob 4-6
Feb-14 Accounts Receivable, 2/10, n/30 2,450,000
Sales 2,450,000

Feb-24 Cash 2,450,000

Accounts Receivable 2,450,000

Mar-10 Cash 2,500,000

Accounts Receivable 2,450,000
Sales discount forfeited 50,000

Prob 4-7
Accounts Receivable 5,600,000
Sales 5,600,000

Sales returns 560,000

Allowance for sales returns 560,000

Allowance for sales returns 300,000

Accounts Receivable 300,000

Prob 4-8
Trade Accounts Receivable 2,000,000
Allowance for dounbtful accounts - 100,000
Claims Receivables 300,000
Total current trade and other receivables 2,200,000

Prob 4-9
Accounts Receivable, Jan 1 1,300,000
Add: Credit Sales 5,500,000
Total 6,800,000
Less: Collection from customers 5,000,000
Accounts written off 100,000
Sales return 150,000 5,250,000
Accounts Receivable, Dec 31 1,550,000

Accounts Receivable 1,550,000

Less: Allowance for doubtful accounts 250,000
 Allowance for sales returns 50,000 300,000
Net Realizable Value 1,250,000

Prob 4-10
Accounts Receivable, Jan 1 1,300,000
Add: Credit Sales 5,400,000
Total 6,700,000
Less: Collection from customers 4,750,000
Accounts written off 125,000 4,875,000
Accounts Receivable, Dec 31 1,825,000

Prob 4-11
Trade Accounts Receivable 3,500,000
Trade Installment Receivable (850,000 - 50,000) 800,000
Trade Accounts Receivable from officers 150,000
Trade Accounts on postdated checks 200,000
Total Trade Accounts receivable 4,650,000
Prob 5-4
A.
Accounts Receivable 3,070,000
Sales 3,070,000

Cash 2,455,000
Accounts Receivable 2,455,000

Cash 1,455,000
Sales Discount 45,000
Accounts Receivable 1,500,000

Bad Debts 20,000

Accounts Receivable 20,000

Cash 470,000
Sales 470,000

Sales Returns 55,000

Accounts Receivable 55,000

Cash Refunds 10,000

Cash 10,000

Accounts Receivable 5,000

Allowance for Doubtful Accounts 5,000

B.
Net Sales 3,485,000
0.02
69,700

Doubtful Accounts 69,700

Allowance for Doubtful Accounts 69,700

C.
Accounts Receivable 600,000
Allowance for doubtful accounts - 30,000
Net Realizable Value 570,000

Prob 5-5
A.
Accounts Receivable, 2/10, 1/15, n/30 7,935,000
Sales 7,935,000

Cash 4,410,000
Sales Discount 90,000
Accounts Receivable 4,500,000

Cash 2,475,000
Sales Discount 25,000
Accounts Receivable 2,500,000
Accounts Receivable 15,000
Allowance for Doubtful accounts 15,000

Cash 15,000
Accounts Receivable 15,000

Cash 1,100,000
Accounts Receivable 1,100,000

Allowance for Doubtful Accounts 55,000

Accounts Receivable 55,000

Sales Returns 30,000

Accounts Receivable 30,000

B.
Required Allowance 50,000
Credit Balance in Allowance - 20,000
Doubtful Account Expense 30,000

Doubtful Accounts 30,000

Allowance for Doubtful Accounts 30,000

C.
Accounts Receivable 1,250,000
Allowance for Doubtful Accounts - 30,000
Net Realizable Value 1,220,000

Prob 5-6
1
% uncollectible Required Allowance
Not yet due 1,700,000 NIL -
1-30 days past due 1,200,000 5 60,000
31-60 days past due 100,000 25 25,000
61-90 days past due 150,000 50 75,000
over 90 days past due 120,000 100 120,000
Additional accounts to be written off 30,000
3,270,000 280,000

2
Required Allowance 280,000
Allowance Balance before adjustments 65,000
345,000

3
Doubtful Accounts 345,000
Allowance for Doubtful Accounts 345,000

4
Accounts Receivable 3,005,000
Allowance for Doubtful Accounts - 345,000
Net Realizable Value 2,660,000
Prob 6-7
Interest Receivable, Dec 31 190,000
Accrued Interest 3M note, Dec 31 - 180,000
Accrued Interest 1M note, Dec 31 10,000 Nov and Dec, 5,000/month

5,000 x 12= 60,000

60,000/1,000,000= 0.06

3,000,000 x 8% x 3/12= 60,000

1,000,000 x 6% x 10/12= 50,000
Interest Income 110,000

Accounts Receivable, Dec 31 4,360,000

Credit Sales 21,200,000
Cash Collections - 19,800,000
Write Off - 410,000
Accounts Receivable 5,350,000

Allowance 520,000
Doubtful Account 425,000 Squeeze
Total 945,000
Write Off - 410,000
Allowance 535,000

Prob 6-8
Payment, Jan 1 600,000
Present Value of rem. 6 payments 2,616,000
3,216,000

Prob 6-9
Payment, Dec 31 500,000
Present Value of rem. 9 payments 3,125,000
3,625,000

Prob 6-10
Principal 1,000,000

Principal 1,000,000
Interest for 5 yrs 150,000
Maturity Value 1,150,000
Present Value 0.68
782,000

Prob 6-11
500,000 3.99 1,995,000

1,995,000 0.08 159,600

Notes Receivable 2,000,000

Unearned Interest Income 354,400 (505000-159600)
1,645,600

Face Value 2,500,000

Present Value 1,995,000
Unearned, 2019 505,000
Carrying Amount, 2020 1,645,600
Interest Rate 0.08
Interest Income, 2021 131,648

Prob 6-12
500,000 5.65 2,825,000

Sale Price 2,825,000

Carrying Amount 2,000,000
Gain on Sale 825,000

2,825,000 0.12 339,000

Notes Receivable 4,500,000

Unearned Interest Income 1,836,000 (2175000-339000)
2,664,000

Face Value 5,000,000

Present Value 2,825,000
Unearned 2,175,000

Prob 6-13
Present Value, Jan 2019 3,000,000
Interest Income, 2019 300,000
Present value, Jan 2020 3,300,000
Interest Income, 2020 330,000
3,630,000

Prob 6-14
Present Value 4,500,000
Interest Income 0.10
450,000

Present Value 4,500,000

Carrying Amount 4,800,000
Loss on Sale - 300,000

Prob 6-15
Present Value 712,000
Carrying Amount 800,000
Loss on Sale - 88,000

712,000 0.12 85,440

Present Value 712,000

Interest Income, 2019 85,440
Carrying Amount, 2019 797,440

Present Value 712,000

Interest Income, 2019 85,440
Maturity Value 797,440
Interest Rate 0.12
Interest Income, 2020 95,693