EXERCISES ON CASH

Problem 1
LockUp Corporation has the following items in the Petty Cash and Cash Collections combined as of as of
January 5, 2020 during the checking of Cash for December 31, 2019 balance sheet.

a. Bills and Coins

Denomination Bundle of 100 pcs Rolls of 50 coins Loose

P 500 1 9

100 2 27

50 3 5

20 5 4

10 10

5 6 4

1 10 20

.25 40 16

b. Checks

Maker Payee Date Amount

Baran - Customer LockUp 12/30/2019 P 11,920

Catapang-Customer LockUp 12/26/2019 12,505

Torres- Customer LockUp 01/02/2020 5,707

Sherwin-Customer LockUp 12/21/2019 13,350

Alusen-Officer Cash 01/15/2020 310

LockUp Corp. LoveIT Corp. 12/27/2019 14,500

Laurel- Return of Advances Cash 12/29/2019 260

 c. Vouchers and IOUs

Transportation Expenses 01/02/2020 P35

Postage Stamps 12/20/2019 150

Christmas Party Expenses 12/23/2019 6,290

IOU - Villegas 12/27/2019 300

d. Cash Sales Invoices (all currencies No. 15903 to 16112), P 100,500.

e. Official Receipts (Representing Collections)

Official Receipts Amount Form of Collection

31250 P 560 Cash

31251 12,505 Check

31252 1,202 Cash

31253 11,920 Check

31254 13,350 Check

f. Stamps of Various Denominations amounted to P 80.

g. A notation on a sheet of paper as follows: Proceeds from employee contribution for Christmas
Party, P 9,500.

h. Petty Cash Per Ledger, P 15,000.

REQUIRED:
1. Compute the Petty Cash Shortage as of January 1, 2020. _____________________

2. Compute the correct amount of Petty Cash Fund to be reflected in the December 31, 2019
balance sheet ____________________________

3. Compute the total Cash that does not belong to Petty Cash Fund ___________________
Problem 2
The Cash account of The New Normal Corporation for the fiscal year ending July 31, 2019 has the
following information.

General Ledger Bank Statement

Beginning Balance P 140,330 P 172,590

Deposits 751,680

Cash Receipts Journal 763,680

Checks Cleared in the Bank (708,450)

Cash Disbursements Journal (654,330)

July Bank service Charge (2,610)

Note Paid by the Bank (183,000)

NSF Check (9,330)

Ending Balance P 249,680 P 20,880

a. Bank Reconciliation in June included the following Information: Bank Statement Balance,

P 172,590; Deposit in Transit, P 18,000; Outstanding Checks, P 52,260; and balance per general
ledger, P 140,330.

b. Checks Clearing in the bank in July included the following:

Checks Outstanding by the end of June P 50,760

Checks recorded in July Cash Disbursements book 614,010

Check unrecorded and drawn by the company as payment of liability 31,800

A check drawn by New Rural Corporation 11,880

c. Deposits included P 18,000 from June and P 733,680 from July.

d. The bank charged New Normal Corp.’s account for NSF totaling P 9,330. The check was turned
over to a collecting agency.

e. A note of P 174,000, plus interest, was paid directly by bank under an agreement signed four
months ago. The note was recorded in the books of New Normal at P 174,000.
REQUIRED:
4. Compute the total Outstanding Checks as of July 31..

5. Compute the total Deposit in transit as of July 31.

6. Compute the correct Cash in Bank balance as of July 31.

7. Compute the Cash in Bank Shortage, if any, as of June 30.

Problem 3
Cash balance

The books of Caring Co. show the following balances at December 31, 2019:

Cash on hand ₱ 400,000

Cash in Bank – current account 1,200,000

Cash in Bank – peso savings deposit 5,000,000

Cash in Bank – dollar deposit (unrestricted) $ 100,000

Cash in Bank – dollar deposit (restricted) 250,000

Cash in 3-month money-market account ₱ 500,000

3-month unrestricted time deposit $ 20,000

Treasury bill, purchased 11/1/2019, maturing 2/14/2020 ₱1,600,000

Treasury bond, purchased 3/1/2019, maturing 2/28/2020 1,000,000

Treasury note, purchased 12/1/2019, maturing 2/28/2020 400,000

Unused Credit Line 4,000,000

Redeemable preference shares, purchased 12/1/2019, 740,000

due on 3/1/2020

Treasury shares, purchased 12/1/2019, to be reissued on 200,000

1/5/2020

Sinking fund 400,000

Additional information:

• Cash on hand includes a ₱40,000 check payable to Caring Co. dated December 29, 2019.
 • During December 2018, check amounting to ₱30,000 was drawn against the Cash in bank -
current account in payment of accounts payable. The check remains outstanding as of December
31, 2019.
• The Cash in Bank – peso savings deposit includes ₱800,000 security bond on a pending labor
litigation, in favor of a previous employee. The establishment of the bond is mandated by a
court of law.
• The Cash in Bank – peso savings deposit also includes a compensating balance amounting to
₱500,000 which is not legally restricted.
• The Cash in Bank – dollar deposit (unrestricted) account includes interest of $4,000, net of tax,
directly credited to Caring Co.’s account. The exchange rate at year-end is $1 is to ₱45.

REQUIRED:
8. The total amount of Cash to be reported in the 2019 financial statements?

9. The total amount of Cash Equivalent to be reported in the 2019 financial statements?

10. The total amount of Current Assets aside from Cash and Cash Equivalent to be reported in the 2019
financial statements?

NOTHING FOLLOWS

ANSWER SHEET

NAME: ______________________________________

1. ______________________

2. ______________________

3. ______________________

4. ______________________

5. ______________________

6. ______________________
7. ______________________

8. ______________________

9. ______________________

10. ______________________