Name: Lucille Christy Pao Section: MA11

Problem 1-2 (IAA)

1. Prepare adjusting entries on December 31 2019.

a. Accounts receivable 150,000

Cash on hand 150,000

b. Expenses 10,000
Receivable from employee 5,000
Petty cash fund 15,000

2. Compute the total amount of cash and cash equivalents.

Cash on hand 1,000,000

Postdated check ( 150,000)
Adjusted cash on hand 850,000

Petty cash fund 50,000

Unreplenished petty cash expenses (10,000)
Postdated employee check ( 5,000)
Adjusted petty cash 35,000

Cash on hand 850,000

Petty cash fund 35,000
Security Bank current account 2,000,000
PNB current account 1,500,000
Bond sinking fund 2,500,000
Total cash and cash equivalents 6,885,000

3. Explain the presentation of the items excluded from cash and cash
equivalents.

• The BSP 120-day treasury bill of ₱ 3,000,000 is separately shown as current asset.
• The overdraft in BDO current account of ₱ 200,000 is shown as current liability
• The BPI Time deposit of of ₱ 2,000,000 is shown as non-current investment because
it is restricted for land acquisition.
Problem 1-4 (PHILCPA Adapted)

1. Compute the total cash and cash equivalents.

Cash on hand 200,000

NSF customer check ( 35,000)
Postdated customer check ( 15,000)
Adjusted cash on hand 150,000

Petty cash fund:

Currency and coins 5,000

Philippine Bank current account 5,000,000

Undelivered company check 25,000
Postdated company check delivered 45,000
Adjusted balance 5,070,000

Cash on hand 150,000

Petty cash fund 5,000
Philippine Bank current 5,070,000
City Bank current account No. 1 4,000,000
City Bank current account No. 2 ( 100,000)
Asia Bank saving deposit 250,000
Asia Bank time deposit 2,000,000
Total cash and equivalents 11, 375,000

2. Prepare adjusting entries on December 31 2019.

a. Accounts receivable 50,000

Cash on hand 50,000

b. Receivable from officer 2,000

Expenses 12,000
Cash short or over 1,000
Petty cash 15,000

c. Philippine Bank current 70,000

Accounts payable 70,000

d. City Bank current 100,000

Bank overdraft 100,000