Data available at GUSTO Co.

Pa as of December 31, 2020:

Cash on hand P 500,000

Petty cash fund 10,000
MAYBANK current account 1,000,000
PS Bank current account No. 01 1,080,000
PS Bank current account No. 02 (80,000)
BDO savings account 1,200,000
BDO time deposit 500,000

Cash on hand includes the following items:

a. Customer’s check for P40,000 returned by bank on December 26, 2020 due to insufficient
fund but subsequently redeposited and cleared by the bank on January 8, 2021.
b. Customer’s check for P20,000 dated January 2, 2021, received on December 29, 2020.
c. Postal money orders received from customers, P30,000.

The petty cash fund consisted of the following items as of December 31, 2020.

Currency and coins P 2,000

Employees’ vales 1,600
Currency in an envelope marked “collections for charity” with names
attached 1,200
Unreplenished petty cash vouchers 1,300
Check drawn by Mandaluyong Corporation, payable to the petty
cashier 4,000
P10,100

Included among the checks drawn by Mandaluyong Corporation against the MAYBANK current
account and recorded in December 2020 are the following:
a. Check written and dated December 29, 2020 and delivered to payee on January 2, 2021,
P80,000.
b. Check written on December 27, 2020, dated January 2, 2021, delivered to payee on
December 29, 2020, P40,000.

The credit balance in the PS Bank current account No. 2 represents checks drawn in excess of the
deposit balance. These checks were still outstanding at December 31, 2020.

The savings account deposit in BDO has been set aside by the board of directors for acquisition of new
equipment. This account is expected to be disbursed in the next 3 months from the balance sheet date.

Determine:

1. Cash on Hand
2. Petty Cash
3. MAYBANK Current Account
4. CCE
The books of AYO Co. Na disclosed a cash balance of P687,570 on December 31, 2020. The bank statement as of December
31 showed a balance of P547,800. Additional information that might be useful in reconciling the two balances follows:

(a) Check number 748 for P30,000 was originally recorded on the books as P45,000.

(b) A customer's note dated September 25 was discounted on October 12. The note was dishonored on December 29
(maturity date). The bank charged Manila's account for P142,650, including a protest fee of P2,650.

(c) The deposit of December 24 was recorded on the books as P28,950, but it was actually a deposit of P27,000.

(d) Outstanding checks totaled P98,850 as of December 31.

(e) There were bank service charges for December of P2,100 not yet recorded on the books.

(f) Manila's account had been charged on December 26 for a customer's NSF check for P12,960.

(g) Manila properly deposited P6,000 on December 3 that was not recorded by the bank.

(h) Receipts of December 31 for P134,250 were recorded by the bank on January 2.

(i) A bank memo stated that a customer's note for P45,000 and interest of P1,650 had been collected on December 27, and
the bank charged a P360 collection fee.

Determine:

1. Adjusted Cash in Bank Balance

2. Net adjustment to cash as of December 31, 2020
Shown below is the bank reconciliation for SU co. Na for November 2020:

Balance per bank, Nov. 30, 2020 P150,000

Add: Deposits in transit 24,000
Total 174,000
Less: Outstanding checks P28,000
Bank credit recorded in error 10,000 38,000
Cash balance per books, Nov. 30, 2020 P136,000

The bank statement for December 2020 contains the following data:

Total deposits P110,000

Total charges, including an NSF check of P8,000 and a service charge of P400 96,000

All outstanding checks on November 30, 2020, including the bank credit, were cleared in the bank in December 2020.

There were outstanding checks of P30,000 and deposits in transit of P38,000 on December 31, 2020.

Determine:

1. Cash balance per bank on December 31, 2020

2. December receipts per books
3. December disbursements per books
4. Cash balance per books on December 31, 2020
5. Adjusted cash in bank balance as of December 31, 2020
Information available as of December 31, 2020 pertaining to accounts receivable and related accounts at
HILUNA A Co.:

The December 31, 2020 balance in the Accounts Receivable control accounts is P788,000. The only

entries in the Doubtful Accounts Expense account were:

• A credit for P1,296 on December 2, 2020 because Company A remitted in full for the
accounts charged off on October 31, 2020; and
• A debit on December 31 for the amount of the credit to the Allowance for Doubtful Accounts.

The Allowance for Doubtful Accounts schedule is follows:

Debit Credit Balance

January 1, 2020 P14,632
October 31, 2020 Uncollectible
accounts:
Company A – P 1,296
Company B – P3,280 P6,032 8,600
Company C – P2,256
December 31, 2020 P39,400 P48,000

An aging schedule of the accounts receivable as of December 31, 2020 is presented below:

Amount to which the Allowance is

Net debit to be adjusted after adjustments
Age balance and corrections have been made
0 to 1 month P372,960 1 percent
1 to 3 months 307,280 2 percent
3 to 6 months 88,720 3 percent
Over 6 months 24,000 Definitely uncollectible, P4,000;
P8,000 is considered 50%
uncollectible; the remainder is
estimated to be 80% collectible.

There is a credit balance in one account receivable (0 to 1 month) of P8,000; it represents an advance on a
sales contract. Also, there is a credit balance in one of the 1 to 3 months account receivable of P2,000 for
which merchandise will be accepted by the customer.

The ledger accounts have not been closed as of December 31, 2020. The Accounts Receivable control account
is not in agreement with the subsidiary ledger. The difference cannot be located, and you decided to adjust the
control account to the sum of the subsidiaries after corrections are made.

Determine:

1. Adjusted Balance of Accounts Receivable as of December 31, 2020

2. Adjusted balance of the Allowance for Doubtful Accounts as of December 31, 2020
3. Net adjustment to the Allowance for Doubtful Accounts
4. Doubtful Accounts expense for the year 2020
5. Net adjustment to the Doubtful Accounts expense account
Information available pertaining to Notes Receivable of LAST CO. Na:

a. A 4-month note dated November 30, 2020, from BEBI Company, P200,000; interest rate, 16%; discounted on November
30, 2020 at 16%.
b. A draft drawn payable 30 days after for P900,000 by the BABI Company on the Hapi Company in favor of the Dampi
Company, endorsed to LAST Co. Na on December 2, 2020 and accepted on December 4, 2020.
c. A 90-day note dated November 1, 2020 from E1 Co., P500,000; interest at 16%; the note is for subscription to 5,000 shares
of the preferred stock of LAST Co. Na at P100 per share.
d. A 60-day note dated May 3, 2020, from Papi Company, P600,000; interest rate, 16%; dishonored at maturity; judgment
obtained on October 10, 2020. Collection within the next twelve months is doubtful.
e. A 90-day note dated January 4, 2020, from Siri, president of Salcedo, P160,000; no interest; note not renewed; president
confirmed.
f. A 120-day note dated September 14, 2020, from Heti Company, P120,000; interest rate, 16%; note is held by bank as
collateral.

Determine:

1. The adjusted balance of Notes Receivable as of December 31, 2020 is

2. How much of foregoing notes receivable will be reported in the current assets section of the balance sheet?
3. How much is the net interest income from the foregoing notes receivable for 2020?
4. The adjusted balance of Interest Receivable as of December 31, 2020 is