CONCEPTUAL FRAMEWORK

Janesene N. Sol
MWF 1:00-2:00 pm
 ACTIVITY SECTION

ACTIVITY 1:
Cash equivalents or Investment?
Cash equivalents 1. Treasury bills dated November 1, 2019, maturing January 15, 2020
Investment 2. One-year commercial papers dated January 1, 2019, purchased
October 15, 2019
Investment 3. Three-year money market placement purchased June 1, 2019, maturing
December 31,2019
Cash equivalents 4. Three-month treasury bills
Investment 5. Four-year commercial papers purchased 4 months before maturity.

ACTIVITY 2: PROBLEM SOLVING

Problem1:
Missy Company’s petty cash custodian has the following in its cash box:
Bills and Coins: P 520
Petty Cash Vouchers: P 1,700

Postdated Checks from Company Officers: P 1,000

IOUs from employees (vale): P 500
An empty envelope which has a “Happy Birthday” on it. It has a “P 350” writing at the back
The Petty Cash is established at P3,500. The custodian will replenish the Petty Cash. Give
the appropriate entries:

Date Account Titles Debit Credit

Dec 1 Petty cash fund 3 5 0 0

Cash in bank 3 5 0 0
To establish petty cash fund

Dec 31 Expenses 3 5 0 0
Cash in bank 3 5 0 0
To replenish the fund
Problem 2

1. The petty cash fund should be replenished whenever it runs low. There is a need to
replenish the fund at year end due to cash on hand because petty cash is not used in the
replenishment journal entry.

Date Account Titles Debit Credit

Dec 31 Freight in 1 9 .40

Postage 4 0 .00
Balloons for a special occasion 1 8 .00
Meals 2 5 .00
Cash short or over 2 .00
Petty cash fund 1 0 4 .40
To adjust petty cash fund for
unreplenished vouchers and shortage

31 Receivable from custodian 2 .00

Cash short or over 2 .00
To close short or over account
31 Petty cash fund 1 0 0 .00
Cash in bank 1 0 0 .00
To increase the petty cash fund

EVALUATION

Which part of the discussion did you Which part of the discussion did you
find most enjoyable to learn? find most difficult?

The discussion I find most The part where petty cash short or
enjoyable to learn is about the two over were discussed.
ways to account petty cash
transactions.

Do you have question(s) in mind? Write it here.

I have no questions so far.