2019 Vol 1 CH 1 Answers

lOMoARcPSD|7686229
2019 Vol 1 Ch 1 Answers
Financial Accounting and Reporting (Pontifical and Royal University of Santo Tomas,
The Catholic University of the Philippines)
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CHAPTER 1
CASH AND CASH EQUIVALENTS
PROBLEMS
1.1. Classification of accounts

1. A 6. A 11. A 16. A
2. A 7. B 12. B 17. B
3. A 8. B 13. A 18. B
4. B 9. B 14. A 19. A
5. A 10. A 15. A 20. B
1-2. (Money Company)
Checking account in Metrobank P105,200

Savings account at Far East Bank 30,800
Petty cash fund (1,500 – 250) 1,250
Cash on hand (undeposited sales receipts) 4,200
Cash in foreign bank (in equivalent pesos) 65,000
Customers’ check on hand:
Traveler’s check 14,000
Manager’s check 23,120
Unreleased check payable to supplier but recorded as disbursement 62,000
Total amount of cash P305,570
Alternative computation:
Reported total P330,820

Adjustments: Sinking fund cash ( 35,000)
Short term treasury bills ( 52,000)
Unreplenished petty cash expenses ( 250)
Unreleased check payable to supplier but recorded as disbursement 62,000
Correct cash balance P305,570
The outstanding checks of P15,200 was ignored since the given balance of cash is a cash
balance per books. Short-term treasury bills of P52,000 is reported as part of trading
securities unless there is an indication of a maturity of three months or less in which case, they
are included as part of cash and cash equivalents. The unreleased check payable to supplier
and recorded in the cash disbursements journal should be restored back to cash. Meanwhile,
sinking fund cash of P35,000 is reported as a noncurrent financial asset.
1-3. (Cotton Company)
(a)
Reported checkbook balance P180,000
Adjustments:
Customer’s post dated check included in the balance ( 65,000)
Customer’s check returned by bank marked DAIF ( 20,000)
Company check recorded but not yet mailed 15,000
Cash reported on December 31, 2019 statement of financial position P110,000
(b) Accounts Receivable 65,000

Cash in Bank 65,000
Accounts Receivable 20,000

Cash in Bank 20,000
Cash in Bank 15,000

Accounts Payable 15,000

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Chapter 1 – Cash and Cash Equivalents
1-4. (Grain Company)
(a)
Balance per general ledger P2,205,600
Non-cash items:
Customer’s DAIF checks returned by bank P 20,000
Cash in BDO earmarked for purchase
of equipment 750,000
IOUs from employees 5,200
Cash in sinking fund 500,000
Customers’ post dated checks 25,400
Travel advances 8,000 1,308,600
Correct cash balance P 897,000
Customers’ DAIF checks, IOUs and customers’ post dated checks are reported as receivables;
travel advances are prepaid expenses; while savings account in BDO earmarked for office
equipment and cash in sinking fund are reported as noncurrent financial assets. No adjustment
was made on undeposited checks from customers and traveler’s checks since they are proper
inclusions in the cash balance.
(b)
Accounts Receivable (20,000 + 25,400) 45,400
Receivable from Employees 5,200
Prepaid Travel Expense 8,000
Cash Sinking Fund 500,000
Cash Fund for Equipment 750,000
Cash 1,308,600
1-5. (Rod Company)
Petty cash (10,000 – 1,250) P 8,750

Cash on hand (625,000 – 17,500) 607,500
Cash in bank- General (525,000 + 12,500) 537,500
Cash in bank, Payroll (320,000 + 10,000) 330,000
Total P1,483,750
IOU from an employee and customers’ post dated check are receivable items; the bank
overdraft in another bank is reported as a current liability (offset can be made only if the
accounts are with the same bank); the savings deposit is a non-current item since it is
intended for a non-current purpose (for plant acquisition).
Alternative computation:
Reported total P1.980,000

Adjustments:
IOUs from employees (1,250)
Customer’s post-dated check (17,500)
Overdraft in another bank 12,500
Unreleased check deducted in payroll account 10,000
Savings deposit intended for equipment acquisition (500,000)
Correct amount of cash P1,483,750

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1-6. (Latte Company)
Cash and cash equivalents:

Savings account with Allied Bank
Per books P 900,000
Customer’s postdated check (320,000) P580,000
Checking account with Allied Bank
Per books P1,400,000
Issued postdated check 300,000 1,700,000
Bills and coins in the petty cash fund 9,850
Money market fund with BDO that allows check writing 2,000,000
Certificate of deposit with term of 90 days 1,000,000
Payroll fund with BDO
Per books P6,000,000
Unissued but recorded check 50,000 6,050,000
Cash balance with BPI 5,000,000
Correct cash and cash equivalents P16,339,850
The items not included in cash and cash equivalents shall be presented as follows:
Expenses in the statement of comprehensive income (P150 cash

shortage in petty cash fund + expense receipts of P5,000) P 5,150
Current assets:
Certificates of deposit (with term of 120 days) 2,000,000
Accounts receivable (customer’s postdated check) 320,000
Non-current assets:
Cash fund for retirement of bonds payable 1,500,000
Current liabilities
Accounts payable (PDC issued to supplier) 300,000
Salaries payable (unissued check to employee) 50,000
1-7. (Jessie Company)
Nov. 20 Petty Cash Fund 5,000

Cash in Bank 5,000
Nov. 20 to No entry
Dec. 15
Dec. 16 Transportation Expense 1,500
Representation Expense 1,200
Freight-in 1,300
Repairs Expense 920
Cash in Bank 4,920
Dec. 16 –31 No entry
Dec. 31 Transportation Expense 340

Supplies Expense 1,400
Petty Cash Fund 1,740
Jan. 1 Petty Cash Fund 1,740

Transportation Expense 340
Supplies Expense 1,400
Jan. 1-8 No entry

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Jan. 9 Transportation Expense (340 + 120) 460

Supplies Expense (1,400 + 1,300) 2,700
Representation Expense 1,800
Cash in Bank 4,960
9 Petty Cash Fund 3,000

Cash in Bank 3,000
1-8. (Coral Company)
(a) Petty cash fund P5,000.00

Amount of cash on hand P 670.40
Total petty cash vouchers:
Office supplies P 341,60
Postage 780.00
Representation 1,000.00
Transportation 1,321.40
Miscellaneous 837.60 4,280.60 4,951.00
Shortage in the petty cash fund P 49.00
(b) Office Supplies Expense 341.60

Postage Expense 780.00
Representation Expense 1,000.00
Transportation Expense 1,321.40
Miscellaneous Expense 837.60
Cash Short and Over 49.00
Petty Cash Fund 4,329.60
1-9. (Prada Company)
1. May 2 Petty Cash Fund 8,000

Cash in Bank 8,000
2. May 2-20 No entry

3. No entry
4. May 20 Freight-in 2,500

Freight-out 3,000
Supplies Expense 800
Cash in Bank 6,300
5. No entry
6. May 31 Freight in 1,200
Transportation Expense 150
Employee Benefit Expense 320
Receivable from Employees* 630
Petty Cash Fund (8,000 – 5,700) 2,300
*(IOU of 500 + short of 130)
Per count
Bills and coins P5,700
Paid petty cash vouchers
(1,200 + 150 + 320 + 500) 2,170
Total P7,870
Petty cash fund, imprest balance 8,000
Cash shortage P 130

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1-10. (Canon Company)
(a) Bills and coins P1,450

PCVs dated July 1-4, 2019 (undisbursed as of June 30) 800
Adjusted balance of petty cash fund 2,250
Unreleased payroll (1,500)
Correct petty cash balance P 750
(b) Per count

Bills and coins P 1,450
PCVs dated June 3,300
PCVs dated July 800
IOU from an employee 1,400
Employee’s post dated check 2,000
Total per count P 8,950
Cashier’s accountability
Petty cash fund P10,000
Unreleased payroll 1,500
Total accountability 11,500
Cash shortage P 2,550
(c) Miscellaneous Expenses 3,300

Receivable from Employees (1,400 + 2,000) 3,400
Cash Short/Over 2,550
1-11.
(a)

Petty cash vouchers dated January 2020 1,130
IOUs dated January 2020 1,000
Total P6,690
Unreleased payroll ( 2,000)
Correct petty cash fund balance, December 31, 2019 P4,690
(b) Per count

Paid PCV’s
dated Dec. 2019 3,140
dated Jan. 2020 1,130
IOUs
dated Dec. 2019 1,800
dated Jan. 2020 1,000
Total per count P11,630
Cashier’s accountability
Petty cash fund P10,000
Unreleased payroll 2,000
Total accountability P12,000
Cash shortage P 370
(c) Expenses 3,140

Receivables from Employees 1,800
Cash Short/Over 370

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1-12. (Giordano Corporation)

(a)
Giordano Corporation
Bank Reconciliation Statement
December 31, 2019
Balance per bank statement P199,925

Add: Cash on hand for undeposited receipts P13,025
Deposit in transit 35,000 48,025
Total P252,950
Deduct: Outstanding checks 204,055
Adjusted cash balance P 43,895
Balance per books P(32,560)

Add: Note receivable collected by bank, incl interest of P2,500 252,500
Total P219,940
Deduct: Customer’s NSF check returned by bank P42,040
Customer’s check for P29,040 erroneously
recorded as P94,020 64,980
Cash sales missing 64,025
Petty cash fund 5,000 176,045
Adjusted cash balance P 43,895
(b) Adjusting entries:
Cash in bank 252,500

Notes Receivable 250,000
Interest Revenue 2,500
Accounts Receivable (42,040 + 64,980) 107,020

Loss from Theft 64,025
Cash in bank 176,045
Miscellaneous Expenses 1,800

Total Cash on the statement of financial position:
Petty cash fund of P3,200 + Cash in bank of P43,895 P47,095
1-13 David Corporation
(a) Deposit in transit (amount debited in the books on

November 30, 2019 but not yet credited in the bank records P35,000
(b) Check #212613 P

5,000
Check #212614
4,000
Check #212616
16,000
Total outstanding checks, November 30, 2019 P25,000

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(c)
David Corporation
Bank Reconciliation Statement
November 30, 2019
Add Deposit in transit 35,000
Total P270,000
Deduct Outstanding checks 25,000
Adjusted cash balance P245,000
Balance per books P229,700

Add: Note collected by bank P50,000
Check #212612 for P13,500 erroneously recorded as P15,300 1,800 51,800
Total P281,500
Deduct: Not sufficient fund check returned by bank P35,000
Bank service charge 1,500 36,500
Adjusted cash balance P245,000
1-14. (Pound Company)

(a) Per Bank Per Books
Balances before adjustments P31,848 P17,194
Bank service charge ( 109)
Debit memo for printed checks ( 225)
Outstanding checks (6,728)
Deposit of July 31 not yet recorded by bank 4,880
Proceeds of a bank loan, net of P300 interest 5,700
Proceeds from customer’s note, including P100 interest 8,100
Check #1210 for P2,100 erroneously deducted by bank as P1,200 (900)
Stolen check lacking authorized signature deducted by bank in error 800
Customer’s NSF check returned by bank _______ (760)
Correct cash balance P29,900 P29,900
(b) Adjusting entry at July 31, 2019 (compound form)
Miscellaneous Expenses (109 + 125) 234

Accounts Receivable 760
Interest Expense 300
Cash in Bank 12,806
Bank Loan 6,000
Notes Receivable 8,000
Interest Revenue 100
1-15. (Bench Company)

Per Bank Per Books

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Balances before adjustments P892,346.3 P590,884.60

0
Outstanding checks (333,788.20
)
Receipts of 12/31/19 deposited on 1/2/20 53,172.00
Service charges for December ( 225.00)
Proceeds of bank loan omitted from co. records 97,000.00
Deposit of 12/23/19 omitted from bank records 28,924.10
Check of Rome Products charged for lack of counter signature (8,737.40)
Bank error for a deposit of P31,824 recorded as P31,814 10.00
Check of Birch Company erroneously charged by bank 26,900.00
Proceeds of note collected by bank 20,350.00
Erroneous debit by bank for bank loan paid by the co. 50,000.00
Bank error for a deposit of P48,071 recorded as P48,171 ( 100.00
Deposit of Birch Co. erroneously credited by bank (18,192.00) __________
Adjusted cash balance P699,272.2 P699,272.20
0
1-16. (Amethyst Corporation)

Deposit in transit, April 30 18,200
Outstanding checks, April 30 ( 59,435)
Erroneous charge by bank 2,200
NSF checks not yet redeposited (3,435 – 1,835) 1,600
Proceeds of note collected by bank ( 7,548)
Bank service charge 180
Unadjusted book balance for cash, April 30, 2019 P124,460
1-17. (Silver Company)

Deposits in transit 52,000
Outstanding checks (67,500 – 9,000) (58,500)
Erroneous credit by bank ( 4,000)
Check of Silver Lining charged by bank to Silver Co.’s account 12,000
1-19. Cash balance per books, March 1 P115,963.70

Cash receipts during March 246,475.00
Cash disbursements during March (334,709.10)
Bank service charge for March (92.00)
Cash balance per books at March 31 P 27,637.60
Cash balance per bank statement P15,341.40
Deposit in transit 9,000.00
Outstanding checks (2,703.80)
Cash balance reflected per bank 21,637.60
Suspected cash shortage (undeposited collections) P 6,000.00
1-19. (Pearl Corporation)

Add receipts of 12/31/19 not yet deposited 100,000
Balance per bank statement before outstanding checks P500,000
Balance per books P387,000
Bank service charge for December (1,000)
Paid check for P40,000 recorded as P4,000 (36,000)

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Customer’s check returned by bank marked DAIF (22,000) 328,000

Outstanding checks at December 31, 2019 P172,000
Proof:
Per bank Per books
Reported balances P400,000 P387,000
Receipts not yet deposited 100,000
December bank service charge (1,000)
Paid check for P40,000 recorded as P4,000 (36,000)
Customer’s check returned by bank (22,000)
Outstanding checks at December 31 (172,000)
Correct cash balance P328,000 P328,000
1-20. (ABC Services, Inc.)

ABC Services, Inc.
Four-Column Reconciliation
November 30-December 31, 2019
December December
Nov. 30 Receipts Disbursements Dec. 31
Balances per bank statement P294,771.0 P1,065,620.00 P1,211,405.00 P148,986.00
0
Receipts not yet deposited
November 30 21,270.00 (21,270.00)
December 31 32,925.00 32,925.00
Outstanding checks
November 30 (40,525.00) (40,525.00)
December 31 35,191.50 (35,191.50)
Erroneous charge by bank __________ ____________ _____(625.00) _____625.00
Correct balances P275,516.0 P1,077,275.00 P1,205,446.50 P147,344.50
0
Balances per books P270,311.0 P1,072,850.00 P1,195,536.50 P147,624.50

0
Bank service charges
November 30 (295.00) (295.00)
December 31 158.00 (158.00)
Interest credit by bank
November 30 5,500.00 (5,500.00)
December 31 4,925.00 4,925.00
Uncollectible customer’s check 5,947.00 (5,947.00)
NSF returned and redeposited
in December 5,000.00 5,000.00
Check #137412 for P2,300
recorded as P3,200 in error __________ ____________ _____(900.00) _____900.00
Correct balances P275,516.0 P1,077,275.00 P1,205,446.50 P147,344.50
0
1-21. (Bruins Company)

Bruins Company
Proof of Cash
March 31 – April 30, 2019
April April
March 31 Receipts Disbursements April 30

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Balances per bank statement P2,203,500 P5,251,500 P4,357,750 P3,097,250

Outstanding checks:
March 31 (275,000) (275,000)
April 30 580,000 (580,000)
Deposits in transit
March 31 125,000 (125,000)
April 30 670,000 670,000
Erroneous bank credit (20,000) (20,000)
Undeposited receipts
Erroneous bank debit memo (45,000) 45,000
Adjusted balances P2,053,500 P5,776,500 P4,617,750 P3,212,250
Balances per books P2,055,300 P5,567,000 P4,619,800 P3,002,500

Note collected by bank in April 17,000 17,000
Bank service charges
March (1,800) (1,800)
April 2,450 (2,450)
Company’s note discounted with
the bank 200,000 –
(200,000 x 12% x 6/12) 188,000 188,000
Overstatement in book
disbursements (2,700) 2,700
Understatement of April receipts 4,500 4,500
Adjusted balances P2,053,500 P5,776,500 P4,617,750 P3,212,250
1-22. (Lily Company)
(a) August deposits per bank statement P275,000

Deposit in transit at August 31 35,000
Deposit in transit at July 31 (40,000)
Note collected by bank in behalf of Lily Company
(50,000)
Cash receipts per books during August P220,000
(b) August disbursements per bank statement P220,000

Outstanding checks at August 31 25,000
Outstanding checks at July 31 (60,000)
Erroneous bank credit in July corrected in August (10,000)
NSF check (35,000)
Service charge by bank (1,500)
Cash disbursements per books during August P138,500
(c) Balance per books at July 31 P150,000

Cash receipts per books (see a) 220,000
Cash disbursements per books (see b) (138,500)
Unadjusted cash balance per books at August 31 P231,500
or
Unadjusted bank statement balance at August 31
(180,000 + 275,000 – 220,000) P235,000
Outstanding checks, August 31 (25,000)
Deposits in transit, August 31 35,000
NSF check 35,000
Bank service charges 1,500
Note collected by bank (50,000)
Unadjusted cash balance per ledger at August 31 P231,500
(d) Unadjusted bank statement balance P235,000

Deposits in transit 35,000
Correct cash balance at August 31 P245,000
or
10

lOMoARcPSD|7686229
Unadjusted cash balance per books P231,500

NSF check (35,000)
Bank service charges (1,500)
Note collected by bank 50,000
Correct cash balance at August 31 P245,000
1-23. (Leo Company)
a. Outstanding checks, July 31, 2019 P 6,400

Disbursements per books during August 349,000
Checks cleared during August ( 344,000)
Outstanding checks, August 31, 2019 P 11,400
b. Deposits in transit, August 31, 2019 P 40,000

Deposits per bank records during August 320,000
Cash receipts per books during August ( 350,000)
Deposits in transit, July 31, 2019 P 10,000
1-24. (VAB, Inc.)
Outstanding checks at April 30 P 30,000

Add cash disbursements per books:
Total credits in all journals during May P90,000
Less Service charge in April recorded in May ( 1,000) 89,000
Total P119,000
Less checks cleared during May:
Checks and charges by bank in May P80,000
Less: May service charge (500)
NSF check returned as a bank
charge in May (10,000) 69,500
Outstanding checks at May 31 P 49,500
1-25. (Diamond Company)
Deposits in transit at July 31 P 4,500

Receipts per books (40,000 – 5,120) 34,880
Deposits per bank (45,600 – 6,300 – 10,000)) (29,300)
Deposits in transit at August 31 P 10,080
Proof: August Receipts

Per bank Per books
Reported receipts/credits P45,600 P40,000
Deposits in transit, July 31 (4,500)
Note collected by bank in August 6,300
Note collected by bank in July recorded
by the company in August (5,120)
Erroneous charge by bank in July
corrected in August (10,000)
Deposits in transit at August 31 (see above) 10,080 _________
Correct totals P41,180 P41,180
1-26. (Real Gem Company)
11

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Outstanding checks, 12/31/19 P37,855.00

Add checks cleared by bank during December
Bank disbursements during December P62,277.00
Outstanding checks, 11/30/19 (24,750.00)
Erroneous bank credit in November
cleared in December (9,218.00) 28,309.00
Cash disbursements per books during December P66,164.00
1-27. (Lira Company)
Deposits in transit, August 31 P 9,500

Add cash receipts per general ledger 30,500
Less deposits per bank (30,200)
Deposits in transit, September 30 P 9,800
Outstanding checks, September 30 P 2,000

Add checks cleared by bank during September 23,600
Less cash disbursements per general ledger (24,000)
Outstanding checks, August 31 P 1,600
1-28. (Euro Company)
(a)
Petty Cash Fund
Currency and coins P 1,490
Replenishment check 1,830 P 3,320
Cash on hand
Reported amount P 19,700
Less: Customer’s NSF check returned (5,000)
Customer’s post dated check (1,500) 13,200
Cash in Metrobank
Reported amount P110,200
Add: Undelivered check #1214 2,500
Post dated check #1219 4,300 117,000
Cash in Allied Bank
General account P162,000
Less credit balance in Payroll account (4,000) 158,000
(b)
Current assets:
Cash and cash equivalents (see Note #, #) P291,520
Receivable from employees 880
Non-current assets:
Cash Fund for Equipment (see Note#) 65,000
Note # A right of offset exist in the agreement between Allied Bank and its depositors.
Note # Cash and cash equivalents consist of the following:

Petty Cash Fund P 3,320
Cash on Hand 13,200
Cash in Metrobank – Current 117,000
Cash in Allied Bank - General (net of an overdraft in
Payroll account of P4,000) 158,000
Total cash and cash equivalents
P291,520
12

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Note # The cash fund for equipment is kept in a savings account in Security Bank. Said
amount is expected to be disbursed in March 2020.
MULTIPLE CHOICE QUESTIONS
Theory
MC1 A MC6 D MC11 D MC16 C MC21 A

MC2 A MC7 A MC12 D MC17 C MC22 B
MC3 C MC8 A MC13 C MC18 C MC23 D
MC4 D MC9 A MC14 D MC19 B MC24 B
MC5 D MC10 D MC15 A MC20 B MC25 D
MC26 D
Problems
MC27 C Cash in banks P2,250,000

Cash on hand 125,000
Total cash P2,375,000
MC28 D Checkbook balance P50,000

Check payable to Bataan properly dated but not included in
checkbook balance 20,000
MC29 C Correct cash balance in Equitable-PCIBank P320,000

Currency and coins in petty cash fund 580
Cash balance, April 30 P320,580
MC30 B Cash balance per ledger P682,250

Notes receivable in the possession of a collecting agency (25,000)
Post-dated check included in the undeposited receipts (10,500)
Bond sinking fund cash (127,500)
IOUs signed by employees (4,950)
Paid vouchers not yet recorded (6,450)
Correct cash on hand and in banks P507,850
OR
Petty cash fund P 3,600
13

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Checking account in Metrobank 336,750

Undeposited receipts (178,000 – 10,500) 167,500
Correct cash on hand and in banks P507,850
MC31 D Replenishment entry is

Expenses 950
Cash short or over 50
Cash in bank 1,000
MC32 B Currencies P3,800

Coins 1,200
Company check payable representing salary (accommodation
check to petty cash custodian 12,500
Correct amount of petty cash fund P17,500
MC33 C Cash in the fund P 440

Miscellaneous expenses 3,640
Total P4,080
Amount of fund established 4,000
Cash overage P 80
MC34 B Total bills and coins P1,825

Certified check of general manager 1,500
Replenishment check 5,150
Correct amount of petty cash fund P8,475
MC35 A Amount of petty cash fund established P10,000

Total amount in the drawer
Correct petty cash fund P8,475
Petty cash vouchers not yet replenished 1,430 9,905
Amount of cash shortage P 95
The unused postage stamps of P120 is part of the P280 postage stamps purchased.
This means that P120 will be reported as part of prepaid expenses, whereas P160
will be reported as an operating expense.
MC36 D Corrected bank statement balance (50,000 + 20,000 – 15,000) P55,000

Correct balance per books before considering interest on note
(43,000 – 6,000 + 15,000) 52,000
Interest on the note collected by the bank P 3,000
MC37 B Balance per bank statement P180,500

Deposit in transit 32,500
MC38 B Balance per books P677,600

Bank service charges (580)
Check for P8,900 paid by bank but erroneously recorded
in the books as P9,800 900
Correct cash in bank balance P677,920
OR
Deposit in transit 123,450
Correct cash in bank balance P677,920
MC39 B Petty cash fund (10,000 – 4,500) P 5,500
14

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Currency and coins counted (undeposited collections) 95,000

Correct cash on hand balance P100,500
MC40 B Deposit in transit, beginning P17,000

Receipts reflected in the books 490,000
Deposits reflected per bank (476,000)
Deposit in transit, ending P31,000
MC41 A Outstanding checks, beginning P39,000

Checks issued (per books) 490,000
Checks cleared by bank (617,000 – 15,000) (602,000)
Outstanding checks, ending P47,000
MC42 C Pre-adjustment cash balance per books P768,370

Net credit adjustment per books (132,274)
Outstanding checks 20,750
Bank statement balance P656,846
MC43 B Unadjusted cash balance per books P450,000

Collection by bank 9,400
Customer’s NSF check returned by bank (3,200)
Customer’s check for P4,500 erroneously recorded as P5,400 (900)
Check written for P790 erroneously recorded as P970 180
MC44 D Petty cash fund P1,500
Customer’s certified check 5,000
Unrestricted demand deposits 486,000
Undelivered checks written and recorded 12,000
Total cash P504,500
MC45 D Cash account balance P96,000

Post-dated customer’s check included in the cash receipts (4,000)
Undelivered check included in the cash disbursements 7,000
MC46 C Balance, end, per bank (650,000 + 1,300,000 – 1,100,000) P850,000

Deposit in transit, June 30 150,000
Outstanding checks, June 30 (84,000)
Check deposit omitted by bank 7,500
OR
Balance per books, June 30 P794,800
Service charge (6,000)
NSF check returned (48,000)
Customer’s check for P37,400 recorded as P34,700 2,700
MC47 D June receipts reported per books P1,154,800

Customer’s check for P37,400 recorded as P34,700 2,700
Corrected June receipts P1,337,500
MC48 B June disbursements reported per books P1,123,500

May service charge (4,500)
June service charge 6,000
May NSF check returned (56,000)
June NSF check returned 48,000
Corrected June disbursements P1,117,000
MC49 B Outstanding checks, end P25,000
15

lOMoARcPSD|7686229
Checks cleared 224,200

Outstanding checks, beginning (78,200)
Checks issued/Disbursements per books P171,000
MC50 A December deposits per bank P261,000

Deposit in transit, beginning (41,500)
Erroneous bank charge in November cleared (credited) in (15,000)
December
Cash receipts per books P204,500
MC51 D Balance per bank, December 31 P217,200

Cash balance per books, December 31 P192,200
MC52 C Correct cash balance (45,000 + 10,000 + 8,000) P63,000

Balance per bank before outstanding checks
(34,000 – 300 – 3,200 – 3,600 + 2,700) 29,600
Outstanding checks P33,400
16

2019 Vol 1 CH 1 Answers

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2019 Vol 1 CH 1 Answers

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2019 Vol 1 Ch 1 Answers

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1.1. Classification of accounts

1-2. (Money Company)

Checking account in Metrobank P105,200

Reported total P330,820

1-3. (Cotton Company)

(b) Accounts Receivable 65,000

Accounts Receivable 20,000

Cash in Bank 15,000

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Chapter 1 – Cash and Cash Equivalents

1-4. (Grain Company)

1-5. (Rod Company)

Petty cash (10,000 – 1,250) P 8,750

Reported total P1.980,000

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Chapter 1 – Cash and Cash Equivalents

1-6. (Latte Company)

Cash and cash equivalents:

Expenses in the statement of comprehensive income (P150 cash

1-7. (Jessie Company)

Nov. 20 Petty Cash Fund 5,000

Dec. 16 –31 No entry

Dec. 31 Transportation Expense 340

Jan. 1 Petty Cash Fund 1,740

Jan. 1-8 No entry

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Chapter 1 – Cash and Cash Equivalents

Jan. 9 Transportation Expense (340 + 120) 460

9 Petty Cash Fund 3,000

1-8. (Coral Company)

(a) Petty cash fund P5,000.00

(b) Office Supplies Expense 341.60

1-9. (Prada Company)

1. May 2 Petty Cash Fund 8,000

2. May 2-20 No entry

4. May 20 Freight-in 2,500

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Chapter 1 – Cash and Cash Equivalents

1-10. (Canon Company)

(a) Bills and coins P1,450

(b) Per count

(c) Miscellaneous Expenses 3,300

Bills and coins P4,560

(b) Per count

(c) Expenses 3,140

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Chapter 1 – Cash and Cash Equivalents

1-12. (Giordano Corporation)

Balance per bank statement P199,925

Balance per books P(32,560)

(b) Adjusting entries:

Cash in bank 252,500

Accounts Receivable (42,040 + 64,980) 107,020

Miscellaneous Expenses 1,800

Total Cash on the statement of financial position:

Petty cash fund of P3,200 + Cash in bank of P43,895 P47,095

1-13 David Corporation

(a) Deposit in transit (amount debited in the books on

(b) Check #212613 P

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