PROBLEM 1

 Balances in the Elizalde Company’s account at the Land Bank:

 Current account P90,000
 Savings account P135,100
 Undeposited cutomer checks of P25,000
 Currency and coin on hand P3,450
 Petty Cash of P5,550 (currency of P1,500 and unreplenished vouchers of P2,500)
 Savings account at the Metropolitan Bank with a total cash balance of P2,350,000. This
account is for the purpose of using it in accumulating future plant expansion (2023)
 Treasury Bills:
 Three-month maturity bills P85,000
 Two-month maturity bills P75,000
 Eight-month maturity bills P120,000
 Time Deposit P120,000
Since the accountant of the Elizalde Company is in the process of preparing the company’s
financial statement. What is the correct balance of cash and cash equivalents to be reported in the
current assets section in Financial Position?
A. P726,800 C. P535,050
B. P584,640 D. P655,050
PROBLEM 2
Montefalco Corp. presents its Financial Statements for the month ended, December 31, 2020. Here
are the following items:
 Current Account at Union Bank P145,000
 Payroll Account P350,000
 Treasury Bills (maturity date is August 24,2021) P950,000
 Treasury Bills (acquired 3months before maturity) P250,000
 Postage Stamps P1,300
 Employee’s Post Dated Checks P4,450
 IOU from the Vice President P8,100
 Credit Memo from a supplier P8,300
 Traveler’s Check P25,000
 Money Order P11,800
 Petty Cash Fund (currency of P2,500 and P10,000 P12,500
In expense receipts)
In the Statement of Financial Position, what would be the amount be reported as “cash and cash
equivalents”?
A. P784,300 C. 805,100
B. P792,400 D. 817,650

PROBLEM 3
The petty cash fund custodian presents the following during the count:
 Currency P1,700
 Petty Cash Vouchers:
 Postage P450
 Transportation Expense P360
 Office Supplies Expense P900
  Advances to office staff 1,650
Checks drawn by Hidalgo Inc., payable to
the petty cash custodian P7,500
Postage Stamps P850
An employee’s check returned by the bank, NSF P1,100
The General Ledger shown an imprest petty cash fund balance of P15,000
Answer the following:
1. How much is the petty cash shortage or overage?
A. P840 shortage C. P2,250 overage
B. P950 overage D. P2,340 shortage
2. What is the Adjusted Balance of petty cash fund at July 31, 2020?
A. P10,000 C. P9,200
B. P10,200 D. P9,100

PROBLEM 4
The information below is items relate to GALVEZ Company’s cash in bank:
 Balance per bank statement, December 31, 2020 P30,000
 Collections recorded but not yet deposited in the bank P2,450
 NSF Check P1,500
 Bank charges not recorded P90
 Note collected by bank but not recorded on books P2,750
 Outstanding Checks P3,500
The cash balance in the books of GALVEZ Company on December 31,2020 is?
A. P27,790 C. P31,250
B. P24,790 D. P28,790

PROBLEM 5
The bank reconciliation for December for RIEGO CO. included the following information:
 Checks and Debit memos recorded by the bank in December,
including a December service charge of P1,000 P24,320
 November bank service charge recorded on the books in Dec. P2,000
 Cash disbursement per books during December P34,658
 Customer’s NSF Checks returned by bank in December
(no entry on company books) P16,000
 Customer’s NSF Checks returned by bank in December
(no entry on company books either Nov or Dec.) P7,600
 Deposit in Transit , December 31 P5,421
 Outstanding Checks, December 31 P37,450
The Outstanding Checks totaled at November 30 is?
A. P27,112 C. 12,112
B. P10,112 D. 14,112