Problem 1

You examined the accounts of Taguig Corporation for the year ended December 31, 2021.
In your examination, you determined that the cash account represents both cash on hand and
cash in bank. Your further noted that the company's internal control over cash is very poor.

Based on your cash count on January 15, 2022, cash on hand amounted to Php 22,222.22. Examination
of the cash book and other evidence of transactions disclosed the following:

a. January collections per duplicate receipts, Php 57,777.77.

b. Total duplicate deposit slips, all dated January, Php 44,444.44. This amount includes a deposit
representing collections on December 31.
c. Cash books balance at December 31, 2021 amounted to Php 168,888.88, representing both cash
on hand and cash in bank.
d. Bank statement for December showed a balance of Php 177,777.77
e. Outstanding checks at December 31:

November checks: December checks:

No. 280 1,888.88 No. 331 2,444.44
No. 290 6,677.77 No. 339 1,666.66
No. 345 22,222.22
No. 353 3,333.33
No. 364 11,111.11

f. Undeposited collections at December 31, 2021 amounted to Php 33,333.33.

g. An amount of Php 4,444.44 representing proceeds of a clean draft on a customer was
credited by bank, but is not yet taken up in the company's books.
h. Bank service charges for December, Php 444.44.

The company cashier presented to you the following reconciliation statement for
December, 2021, which he has prepared:

Balance per books, December 31, 2021 163,488.88

Add: Outstanding checks:
No. 331 2,444.44
No. 339 1,666.66
No. 345 22,222.22
No. 353 3,333.33
No. 364 11,111.11 40,777.76
Total 204,266.64
Bank service charge - 444.44
Undeposited collections - 33,733.33
Balance per bank, December 31, 2021 170,088.87

Questions:

1. How much is the adjusted cash balance as of December 31, 2021?

2. How much is the cash shortage as of December 31, 2021?
3. How much is the cash shortage for the period January 1 to 15
on hand and

2,222.22. Examination

ncludes a deposit

senting both cash

Problem 2

During the year, you ascertained the following postings to some accounts,
as follows:

Debit Credit
Petty cash fund 44,444.44
Accounts receivable trade 9,999,999.99 8,777,777.77
Delivery Equipment 1,111,111.11
Accounts Payable trade 5,666,666.66 8,888,888.88
Bank loan 777,777.77 1,666,666.66
Accrued expenses 33,333.33
Sales 9,999,999.99
Purchases 8,888,888.88
Expenses (including depreciation of
Php 100,000 and accrued expenses of
Php 30,000) 1,888,888.88

Question:

The cash in bank balance at December 31, 2021 is?

Problem 3

You obtained the following information on the current account

of P Company during your examination of its financial
statements for the year ended December 31, 2021.

The bank statement on November 30, 2021 showed a balance

of Php 306,970. Among the bank credits in November was
customer's note of Php 100,000 collected for the account of
the company which the company recognized in December among its receipts.
Included in the bank debits were cost of checkbooks amounting to
Php 1,220 and a Php 40,000 check which was charged by the bank
in error against P Co. account. Also, in November you ascertained
that there were deposits in transit amounting to Php 80,005 and outstanding
checks totaling Php 170,500.

The bank statement for the month of December showed total credits of
Php 416,000 and total charges of Php 204,000. The company's books for
December showed total debits of Php 735,605, total credits of Php 407,700
and a balance of Php 485,600. Bank debit memos for were:
No. 121 for service charges, Php 1,660 and No. 122 on a customer's
returned check marked "Refer to Drawer" for Php 24,000.

On December 31, 2021 the company placed with the bank a customer's
promissory note with a face value of Php 120,000 for collection. The
company treated this note as part of its receipts although the bank was
able to connect on the note only in January, 2022.

A check for Php 3,960 was recorded in the company cash payments
books in December as Php 39,600.

Questions:

1. How much is the undeposited collections as of December 31, 2021?

2. How much is the outstanding checks as of December 31, 2021?
3. How much is the adjusted cash balance as of November 30, 2021?
4, How much is the adjusted bank receipts for December?
5. How much is the adjusted book disbursements for December?
6. How much is the adjusted cash balance as of December 31, 2021?
Problem 4

At year- end, Robert Company reported cash and cash equivalents

which comprised the following

Cash on hand 555,555.55

Demand deposit 4,444,444.44
Certificate of deposit 2,222,222.22
Postdated customer check 3,333,333.33
Petty cash fund 55,555.55
Traveler's check 222,222.22
Manager's check 111,111.11
Money order 151,515.15

What amount should be reported as "Cash" at year-end?

Problem 5

Joselle Company reported checkbook balance on December 31, 2021

at Php 5,000,000 and held the following items on same date:

Check payable to Joselle, dated January 2, 2022 in 2,000,000.00

payment of a sale made in December 2021,
included in December 31 checkbook balance

Check payable to Joselle, deposited December 15 500,000.00

and included in December 31 checkbook balance
but returned by bank on December 30 stamped
"NSF". The check was redeposited on January 2, 2022
and cleared on January 9, 2022

Check drawn on Joselle's account, payable to a vendor, dated 300,000.00

and recorded in Joselle's books on December 31, 2021
but not mailed until January 10, 2022.

Certificate of time deposit 1,000,000.00

What amount should be reported as cash on December 31, 2021?

Problem 6

Limpiada Company reprted an imprest petty cash fund

of Php 50,000 with the following details:

Currencies 20,000.00
Coins 2,000.00

Petty cash vouchers:

Gasoline payments for delivery equipment 3,000.00

Medical supplies for employees 1,000.00
Repairs of office equipment 1,500.00
Loans to employees 3,500.00

A check drawn by the entity payable to the 15,500.00

order of Ricardo Dalisay, petty cash custodian,
representing his salary

An employee check returned by the bank 3,000.00

for insufficiency of fund

A sheet of paper with names of several employees 5,000.00

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?
Problem 7

Jack Company procided the bank statement for the month of April
which included the following information:

Bank service charge for April 11,111.11

Check deposited by Jack during April was not collectible 45,454.54
and has been marked "NSF" by the bank and returned

In comparing the bank statement to its own records, the entity

found the following:

Deposits made but not yet recorded by bank 130,000.00

Checks written and mailed but not yet recorded by bank 100,000.00

All deposits in transit and outstanding checks have been properly recorded in
entity's books.

A customer check for Php 35,000 payable to Jack Company had not yet been
recorded by the entity.

Tha cash in bank account balance per ledger is Php 920,000.

What amount should be reported as adjusted cash in bank on April 30?

Problem 8

At the beginning of current year, Jasmin Company had a credit balance of

Php 260,000 in the allowance for uncollectible accounts. Based on past experience,
3% of the credit sales would be uncollectible.

During the current year, the entity wrote off Php 352,000 of uncollectible accounts.
Credit sales for the year totaled Php 9,000,000.

1. What amount should be reported as uncollectible accounts expense for the year?
2. What amount should be reported as allowance for uncollectible accounts at year- end?
Problem 9

Orr Company prepared an aging of accounts receivable on December 31

and determined that the net realizable value of the accounts receivable was
Php 2,500,000.

Allowance for doubtful accounts, January 1

Accounts written off as uncollectible
Accounts receivable on December 31

What amount should be recognized as doubtful accounts expense for the

current year?
 280,000.00
230,000.00
2,700,000.00