Intermediate Accounting 1

1. Tony Company had the following balances on December 31, 2019

Cash in checking account 350,000

Cash in money market account 750,000
Treasury bill, purchased 3,500,000
Novermber1, 2018 maturing January
31, 2020
Time deposit purchased December 1, 4,000,000
2018 maturing March 31, 2020
What amount should be reported as cash and cash equivalents on
December 31, 2018?

2. Banner Company had the following balances on December 31,

2018:

Cash in bank – current account 5,000,000

Cash in bank – payroll account 1,000,000
Cash on hand 500,000
Cash in bank – restricted account for 3,000,000
building construction expected to be
disbursed in 2019
Time deposit, purchased December 2,000,000
15, 2018 and due March 15, 2019

The Cash on hand included a 200,000 check payable to Bruce dated

January 15, 2019. What total amount should be reported as cash and cash
equivalents on December 31, 2018?

3. Pepper Pots Company provided the following data on December

31, 2018:

Checkbook Balance 4,000,000

Bank Statement Balance 5,000,000
Check drawn on Pepper Pots’ 500,000
payable to supplier dated and
recorder on December 31, 2018 but
not mailed until January 15, 2019
Cash in sinking fund 2,000,000
On December 31, 2018, what amount should be reported as cash under
current assets?

4. At year-end, Scarlet company reported cash and cash equivalents

which comprised the followings:
Cash on hand 500,000
Demand deposit 4,000,000
Certificate of Deposit 2,000,000
Postdated customer check 300,000
Petty cash fund 50,000
Traveler’s check 200,000
Manager’s check 100,000
Money Order 150,000
What Total amount should be reported as cash at year-end?

The next two items are based on the following:

Black Widow Company reported the following information at yearn-end:

 Share investments of 1,000,000 that are very actively traded in the

stock market.
 Government treasury bills of 2,000,000 with a 10-year term but
purchased on December 31 at which time they had two months to
go until maturity
 Cash of 3,400,000 in the form of coin, currency, saving account and
checking account.
 Commercial papers of 1,500,000 with term of nine months but
purchased on December 31, at which time they had three months to
go until maturity.
5. What amount should be reported as cash?

6. What total amount should be reported as cash equivalent?

7. Loki company had the following account balances at year-end:

Cash in bank 2,250,000

Cash on hand 125,000
Cash restricted for addition to plant 1,600,000
and expected to be disbursed next
year
Cash in bank included 600,000 of compensating balance against short-term
borrowing arrangement.

The compensating balance is not legally restricted as to withdrawal.

What amount of cash should be reported under current assets at year-end?

8. On December 31, 2018, Hulk Company had the following cash

balances:

Cash in bank – current account 1,800,000

Petty cash fund – all funds were 50,000
reimbursed at year-end
Time Deposit due February 1, 2019 250,000
Time deposit in bank closed by BSP 1,000,000
Cash in bank included 600,000 of compensating balance against short-term
borrowing arrangement on December 31, 2018. The compensating balance
is legally restricted as to withdrawal.

On December 31, 2018, what total amount should be reported as cash and
cash equivalents?

9. Ironman company reported the checkbook balance on December

31, 2018 at 5,000,000 and the following items on same date:

Check payable to ironman, dated 2,000,000

January 2, 2019 in payment of a
sale made in December 2018, not
included in December 31
checkbook balance
Check payable to ironman, 500,000
deposited December 15 and
included in December checkbook
balance, but returned by bank on
December 31, 2018 but not mailed
until January 10, 2019
Check drawn on ironman’s 300,000
account, payable to a vendor,
dated and recorded in Ironman’s
books on December 31, 2018 but
not mailed until January 10, 2019
Certificate of time deposit 1,000,000
What amount should be reported as cash on December 31, 2018?

10. Captain America company reported petty cash fund which

comprised the following:

Coins and currency 3,300

Paid vouchers:
Transportation 600
Gasoline 400
Office supplies 500
Postage stamps 300
Due from employees 1,200 3,000
Manager’s check returned by bank 1,000
marked NSF
Check drawn by the entity to the order 2,700
of petty cash custodian
 What is the correct amount of petty cash fund for statement
presentation purposes?

11. Steve rogers company reported an Imprest petty cash fund of

50,000 with the following details:

Currencies 20,000
Coins 2,000
Petty Cash Vouchers:
Gasoline Payments for delivery equipment 3,000
Medical supplies for employees 1,000
Repairs of office equipment 1,500
Loans to employees 3,500
A check drawn by the entity payable to the order of 15,000
Natasha, petty cash custodian, representing her
salary
An employee check returned by the bank for 3,000
insufficiency of fund
A sheet of paper with names of several employees 5,000
together with contribution for a birthday gift of a co-
employee. Attached to the sheet of paper is a
currency of
What amount of petty cash fund should be reported in the
statement of financial position?

The next three items are based on the following:

The petty cash custodian of Miles Morales Inc. presented the
following on July 31, 2018, the end of the company’s natural
business year:

Currency 1,650
Petty Cash Vouchers:
Postage 420
Office Supplies Expense 900
Transportation expense 340
Computer repairs 800
Advance to office staff 1,500
A check drawn by Miles Inc. payable to the petty 7,200
cash custodian
Postage stamps 300
An employee’s check, returned by bank, marked as 1,000
NSF
An envelope containing currency of 1,890 for a gift 1,890
for a retiring employee
16,000
 The general ledger shows an imprest petty cash fund balance of
16,000.

12. How much is the petty cash shortage or overage?

13. What is the adjusted balance of the petty cash fund at July 31,
2018?

14. The adjusting entry at July 31, 2018 would include a

15. Hawkeye company had the following account balances on

December 31, 2018:

Petty cash fund 50,000

Cash in bank – current account 4,000,000
Cash in bank – payroll account 1,200,000
Cash in bank – sinking fund 2,000,000
Cash on hand 500,000
Cash in bank – restricted account for plant addition 1,500,000
and expected to be disbursed in 2019
Treasury Bills 1,000.000

 The petty cash fund included unreplenished December 2018 petty

cash expense vouchers 5,000 and employee IOU 5,000
 The cash on hand included a 100,000 customer check payable to
Hawkeye dated January 15, 2019. In exchange for a guaranteed
line of credit, the entity has agreed to maintain a minimum balance
of 200,000 in the unrestricted current bank account
 The sinking fund is set aside to settle a bond payable that is due on
June 30, 2019

What amount should be reported as cash and cash equivalents on

December 31, 2018?

16. Black Panther Company provided the following information on

December 31, 2018:

Petty cash fund 50,000

Current account – first bank 4,000,000
Current account – second bank overdraft (250,000)
Money market placement – third bank 1,000,000
Time deposit – fourth bank 2,000,000
 A check for 100,000 was drawn against first bank current account
dated and recorded December 29, 2018 but delivered to payee on
January 15, 2019
 The fourth bank time deposit is set aside for land acquisition in early
January 2019
 What total amount should be reported as cash and cash
equivalents on December 31, 2018?

17. Quick Silver company provided the following information on

December 31, 2018:

Cash on hand 500,000

Security band current account 1,000,000
PNB Current Account No. 1 400,000
PNB Current Account No. 2 (50,000)
BSP Treasury Bill – 60 days 3,000,000
 The cash on hand included a customer postdated check of 100,000
and postal money order of 400,000.
 A check for 200,000 in payment account was drawn against
Security Bank account, dated January 15, 2019, delivered and
recorded and December 31, 2018

What total amount of Cash and cash equivalents should be

recorded in December 31, 2018?

18. On December 31, 2018, Spider Company reported cash account

balance per ledger of 9,500 which included the following:

Cash in bank – demand deposit 3,000,000

Time deposit – 30 days 500,000
NSF Check of customer 200,000
Money Market placement due on June 30, 2019 2,000,000
Saving deposit 1,000,000
IOU from an employee 300,000
Pension fund 1,500,000
Customer check dated January 31, 2019 600,000
Customer check outstanding for 18 months 400,000
 Check of 100,000 in payment accounts payable was dated and
recorded on December 31, 2018 but mailed to creditors on January
15, 2019
 Check of 300,000 dated January 31, 2019 in payment of accounts
payable was recorded and mailed December 31, 2018
 The cash receipts journal was held open until January 15, 2019,
during which time 200,000 was collected and recorded on
December 31, 2018

What total amount should be reported as cash and cash equivalents

December 31, 2018?

19. On December 31, 2018, Peter Quill Company reported cash of

9,950,000 with the following details:

Undeposited collections 600,000

Cash in bank – BDO checking account 4,000,000
 Undeposited NSF check received from customer, 150,000
dated December 1, 2018
Undeposited check from customer, dated January 250,000
15, 2019
Cash in Bank – BDO Fund for payroll 1,000,000
Cash in Bank – BDO money market instrument, 90 2,000,000
days
Cash in foreign banks restricted 1,500,000
Cash in Bank – BDO value added tax account 450,000
Total 9,950,000
On December 31, 2018 what total amount should be reported as
cash and cash equivalents?

The next two questions are based on the following:

Peter Company reported the following information in relation to
cash on December 31, 2018:
 Checkbook balance, 4,000,000
 Undeposited collections, 400,000
 A customer check amounting to 200,000 dated January 2, 2019
was included in December 31, 2018
 Another customer check for 500,000 deposited on December 22,
2018 was included in the checkbook balance but returned by the
bank for insufficiency of fund. This check was deposited on
December 26, 2018 and cleared two days later.
 A 400,000 check payable to supplier dated and recorded on
December 30, 2018 was mailed on January 16, 2019
 A petty cash fund of 50,000 comprised the following on December
31, 2018:

Coins and currencies 5,000

Petty cash vouchers 40,000
Refundable deposits for returnable containers 5,000
50,000
A check of 40,000 was drawn on December 31, 2018 payable to
petty Cash.

20. What is the adjusted cash in bank on December 31, 2018

a. 4,600,000
b. 4,200,000
c. 4,400,000
d. 3,700,000
21. What total amount should be reported as Cash on December 31,
2018?
a. 4,645,000
b. 4,845,000
c. 4,600,000
d. 4,650,000
 22. In preparing the bank reconciliation for the month of August,
Gamora Company provided the following information:

Balance per bank statement 1,805,000

Deposit in Transit 325,000
Return on customer check for insufficient fund 60,000
Outstanding checks 275,000
Bank service charge for august 10,000
What is the adjusted cash in bank?
a. 1,855,000
b. 1,795,000
c. 1,785,000
d. 1,755,000

The next two questions are based on the following:

In preparing the bank reconciliation of the month of December, Drax

Company provided the following data:

Balance per bank statement 3,800,000

Deposit in transit 520,000
Amount erroneously credited by bank to Drax’s account 40,000
Bank service charge for December 5,000
NSF Check 50,000
Outstanding checks 675,000

23. What is the adjusted cash in bank?

a. 3,685,000
b. 3,645,000
c. 3,600,000
d. 3,605,000

24. What is the adjusted cash in bank balance per book?

a. 3,550,000
b. 3,660,000
c. 3,610,000
d. 3,655,000

25. Rocket Racoon Company provided the following data for the
purpose of reconciling the cash balance per book with the balance
per bank statement on December 31:

Balance per book 850,000

Balance per bank statement 2,000,000
Outstanding checks, including certified check of 500,000
 100,000
Deposit in transit 200,000
December NSF checks (of which 50,000 had
been redeposited and cleared on December 27)
Erroneuos credit to the Rocket Racoon’s account, 300,000
representing proceeds of loan granted to another
company
Proceeds of note collected by bank for rocket 750,000
raccoon, net of service charge of 20,000

What amount should be reported as cash in bank at year-end?

a. 1,500,000
b. 1,400,000
c. 1,800,000
d. 1,450,000

26. Mantis Company received the bank statement for the month of
March. However, the closing balance of the account was
unreadable. Attempts to contact the bank after hours did not secure
the desired information

February 28 book balance 1,460,000

Noted collected by bank 100,000
Interest earned on note 10,000
NSF Check of customer 130,000
Bank service charge on NSF Check 2,000
Other bank service charge 3,000
Outstanding checks 200,000
Deposit of February 28 placed in night depository 85,000
Check issued by Muntis Company charged to 20,000
Mantis’ account

What is the Cash balance per bank statement?

a. 1,435,000
b. 1,530,000
c. 1,340,000
d. 1,550,000