PROBLEM 1: Bea Company

Current account-Bank of PI P 900,000

Undeposited Collection 350,000
Supplier's check 60,000
Petty Cash fund 60,000
Bank of Manila (410,000 - 300, 000) 110,000
Cash balance P 1,430,000

PROBLEM 2: IAN Co.

1. What is the cash in bank balance per books on December 31, 2016?
Answer:
1. Balance per bank statement P585, 284
Outstanding checks (52,810)
Undeposited collections 23,000
Error in rent check (P9, 840 -- P8, 940) (900)
Automatic mortgage payment 18,000
Bank service charges 740
Bank error (35,000)
NSF check 3,400
Balance per books P541, 714

2. What is the adjusted cash in bank balance on December 31, 2016?

Answer:
BOOK BANK
Unadjusted Balance P 541,714 P 585,284
Outstanding checks (52,810)
Undeposited collection 23,000
Error in recording 900
Mortgage payment (18,000)
Bank service charge (740)
Bank error (35,000)
NSF Checks (3,400)
Adjusted Balance P 520, 474 P 520, 474

3. What amount would Ian Co. report as cash and cash equivalents in the current assets section on
December 31, 2016, statement of financial position?
Answer:
Current account balance P520, 474
Petty cash 8,000
Treasury bills (P40, 000 x 1/2) 20,000
Total cash and cash equivalents P548, 474