1.

The accounting records and bank statement of Entity A show the following information:

SUBSIDIARY LEDGER 
CASH IN BANK - BPI CURRENT ACCOUNT 
Date  Description  Debit  Credit  Balance 
6/1  Bal. forwarded      881,000
6/11  Check #1113    130,800 750,200
6/15  Check #1114   220,000 530,200
6/16  Deposit  295,800   826,000
6/22 Deposit  670,000   1,496,000
6/24  Check #1115   80,000 1,416,000
6/28  Check #1116   380,000 1,036,000
6/29  Deposit  160,000   1,196,000

METROBANK
BANK STATEMENT - ENTITY A
Date  Description  Debit Credit Balance 
6/1  Bal. forwarded      881,000
6/10  Deposit  350,000 1,231,000
6/15 Payment         2,000    1,229,000
6/15 Check #1114     220,000    1,009,000
6/16 Deposit    295,800 1,304,800
6/20 Payment 50,000 1,254,800
  
6/22 Deposit   1,924,800
670,000 
6/24 Check #1115 80,000 1,844,800
6/26  Check #1113  130,800 1,714,000
6/28  Deposit    410,000 2,124,000

Additional information:
  The payments of ₱2,000 and ₱50,000 shown on the bank statement pertain to the cost of
checkbook requested from the bank and the monthly amortization of a bank loan,
respectively. The loan payment includes payment for interest of ₱8,000.
 Deposits shown on the bank statement but not on the cash ledger represent collections of
accounts receivable.

How much is the adjusted cash balance?

1904000
Answer:
Feedback
 
Bal. per books, end. 1,196,000Bal. per bank, end. 2,124,000
Add: CM 760,000Add: DIT 160,000
Less: DM (52,000)Less: OC (380,000)
Add/Less: Book errors - Add/Less: Bank errors -
Adjusted balance 1,904,000Adjusted balance 1,904,000
     
 

The correct answer is: 1904000

2. On December 31, 2020, Marine Company reported cash of P2,878,000 with the following
details:

 Undeposited collections  P 67,000

 Cash in bank - BDO checking account 460,000
 Cash in bank - BPI (overdraft)      (58,000)
 Undeposited NSF check received from customer dated December 1, 2020  14,000
 Undeposited check from a customer dated February 1, 2021  15,000
  Cash in bank  - BDO fund for payroll  170,000
 Cash in bank - BDO savings deposit 110,000
 Cash in bank - BDO money market instrument, 90 days 1,500,000
 Cash in foreign bank restricted   200,000
 Cash in bank - BDO value added tax account  400,000

What amount should be reported as cash and cash equivalents on December 31, 2020?

2707000
Answer:
Feedback

The correct answer is: 2707000

3. The information below was taken from the bank transfer schedule prepared during the audit
of Fox Co.’s financial statements for the year ended December 31, 20x1. Assume all checks
are dated and issued on December 30, 20x1.

Bank Accounts Disbursement date Receipt date

Per
Check # From To Per books Per books Per bank
bank
101 National Federal Dec. 30 Jan. 4 Dec. 30 Jan. 3
202 County State Jan. 3 Jan. 2 Dec. 30 Dec. 31
303 Federal American Dec. 31 Jan. 3 Jan. 2 Jan. 2
404 State Republic Jan. 2 Jan. 2 Jan. 2 Dec. 31
Which of the following checks might indicate kiting?

a.#202 and #404

b.#202 and #303

c.#101 and #404

d.#101 and #303.

Feedback
Your answer is correct.

The correct answer is:

#202 and #404

4. The accounting records and bank statement of Entity A show the following information:

SUBSIDIARY LEDGER 
CASH IN BANK - BPI CURRENT ACCOUNT 
Date  Description  Debit  Credit  Balance 
6/1  Bal. forwarded      881,000
6/11  Check #1113    130,800 750,200
6/15  Check #1114   220,000 530,200
6/16  Deposit  295,800   826,000
6/22 Deposit  670,000   1,496,000
6/24  Check #1115   80,000 1,416,000
6/28  Check #1116   380,000 1,036,000
6/29  Deposit  160,000   1,196,000

METROBANK
BANK STATEMENT - ENTITY A
Date  Description  Debit Credit Balance 
6/1  Bal. forwarded      881,000
6/10  Deposit  350,000 1,231,000
6/15 Payment         2,000    1,229,000
6/15 Check #1114     220,000    1,009,000
6/16 Deposit    295,800 1,304,800
6/20 Payment 50,000 1,254,800
  
6/22 Deposit   1,924,800
670,000 
6/24 Check #1115 80,000 1,844,800
6/26  Check #1113  130,800 1,714,000
6/28  Deposit    410,000 2,124,000

Additional information:
 The payments of ₱2,000 and ₱50,000 shown on the bank statement pertain to the cost of
checkbook requested from the bank and the monthly amortization of a bank loan,
respectively. The loan payment includes payment for interest of ₱8,000.
 Deposits shown on the bank statement but not on the cash ledger represent collections of
accounts receivable.

How much is the credit memo?

760000
Answer:
Feedback
·Credit memos: ₱350,000 deposit on 6/10 + ₱410,000 deposit on 6/28 = ₱760,000.

The correct answer is: 760000

 5. Taken from the records of Girly Co. are the following: 

How much are the deposits in transit on November 30?

 7440
Answer:

Feedback

The correct answer is: 5820

 6. Taken from the records of Girly Co. are the following:

How much are the outstanding checks on November 30?

 9900
Answer:

Feedback

The correct answer is: 8280

7. XYZ Company has the following information on December 31, 2020:

Cash on hand P  200,000
BPI Current Account   5,100,000
DBP checking account           3,870,000
AUB current account     (100,000)
BDO savings account for equipment acquisition      250,000
BDO time deposit, 90 days   2,000,000

Included among the checks drawn by XYZ against the BPI current account and recorded in
2020 are:
• Check written and dated May 23, 2020 and delivered to payee on June 1, 2020,
P120,000.
• Check written December 26, 2020, dated January 30, 2021, delivered to payee on
December 28, 2020, P145,000. 

What total amount should be reported as cash and cash equivalents on December 31, 2020?

11195000
Answer:

Feedback
The correct answer is: 11435000

8. Accounting for Petty Cash Fund (15 points)

1. On November 15, 2020, the Board of Directors of ABC Company approved the establishment
of a petty cash fund with an imprest balance of P5,000. A check was drawn payable to petty
cash. 
2. On November 18, 2020, an employee from accounting department requests for a fund to
buy office supplies. The PCF custodian gives the employee three 100-peso bills and makes
him sign a petty cash voucher. Later that day, the employee submitted to the custodian the
original copy of the official receipt indicating purchase of P285.00 worth of office supplies
together with three 5-peso coins. 
3. From November 19-25, 2020, amounts were taken from the PCF for various company
expenses (supported by PCVs and official receipts) which amounted to a total of P 4,292.00. 
4. On November 30, 2020, a cash count of the PCF was conducted by the company's internal
auditor. No irregularities were found. A check was drawn on the same day to replenish the
petty cash fund.
5. On December 5, 2020, a board resolution is made to change the balance of the petty cash
fund to P10,000 and a check was drawn payable to petty cash. 
6. From December 6 -29, 2020, disbursements from the petty cash fund are as follows:
o Various expenses                              P 7,305
o IOU from the petty cash custodian        500
7. Cash count conducted by the company's internal auditor on December 31, 2020 revealed the
following:
o Bills and coins                                                               P 1,995
o Petty cash vouchers for various expenses                   7,305
o IOU from the the petty cash custodian                             500               

Requirements: Prepare the necessary journal entries to account for the petty cash fund. The
journal entries should be complete with descriptions (points will be deducted if the entry is
not in good form). See sample below:
Indicate "NO ENTRY" if such is your answer. Example:

No. 1.       NO ENTRY

Glorious Company reported checkbook balance on December 31, 2020 at P3,200,000.
9. Glorious Company reported checkbook balance on December 31, 2020 at P3,200,000.A customer
check amounting to P180,000 dated January 2, 2021 was included in the December 31, 2020
checkbook balance.

 Another customer check for P500,000 deposited on December 22, 2020 was included in the
checkbook balance but returned by bank for insufficiency of fund. This check was
redeposited on December 26, 2020 and cleared 2 days later.
 A P450,000 check payable to supplier dated and recorded on December 30, 2020 was mailed
on January 16, 2021.
 A petty cash fund of P5,000 comprised the following on December 31, 2020:

Coins and currencies    500.00

Petty cash vouchers 4,300.00
PCF shortage due from cashier    200.00

 A check of P4,500 was drawn and recorded on December 31, 2020 payable to
petty cash. 

What amount should be reported as “cash” on December 31, 2020? 

3470500
Answer:
Feedback

The correct answer is: 3475000

10. You are the accountant of Bright Company. You obtained the following information for the
purpose of preparing the bank reconciliation for the month of June 2020. 
CASH IN BANK PER ACCOUNTING RECORDS

CASH IN BANK PER BANK STATEMENT

Additional Information
  The BPI checking account was opened on June 1, 2020. 
 For this problem, please assume that the bank does not commit any error in terms of
recording check encashments and check/cash deposits.
 Assume that all checks issued/drawn by Bright Company are released and delivered to
payee on the day it was recorded and issued.
 Bright Company erroneously recorded the cash deposit on June 25.  
 Bright Company has an auto-debit arrangement with BPI on monthly mobile phone
charges in favor of Globe Telecom. 
 Bright Company has an arrangement for the bank to collect accounts payable of
customers on behalf of the entity. 

Required: 

1. Prepare the bank reconciliation in good form (show details/breakdowns of reconciling

items). 
2. Prepare the necessary adjusting entries (in good form).  

You may type your answers directly in the box below or you may attach a clear screenshot or
picture of your written/encoded answers. 
11. The accounting records and bank statement of Entity A show the following information:

SUBSIDIARY LEDGER 
CASH IN BANK - BPI CURRENT ACCOUNT 
Date  Description  Debit  Credit  Balance 
6/1  Bal. forwarded      881,000
6/11  Check #1113    130,800 750,200
6/15  Check #1114   220,000 530,200
6/16  Deposit  295,800   826,000
6/22 Deposit  670,000   1,496,000
6/24  Check #1115   80,000 1,416,000
6/28  Check #1116   380,000 1,036,000
6/29  Deposit  160,000   1,196,000

METROBANK
BANK STATEMENT - ENTITY A
Date  Description  Debit Credit Balance 
6/1  Bal. forwarded      881,000
6/10  Deposit  350,000 1,231,000
6/15 Payment         2,000    1,229,000
6/15 Check #1114     220,000    1,009,000
6/16 Deposit    295,800 1,304,800
6/20 Payment 50,000 1,254,800
  
6/22 Deposit   1,924,800
670,000 
6/24 Check #1115 80,000 1,844,800
6/26  Check #1113  130,800 1,714,000
6/28  Deposit    410,000 2,124,000

Additional information:
 The payments of ₱2,000 and ₱50,000 shown on the bank statement pertain to the cost of
checkbook requested from the bank and the monthly amortization of a bank loan,
respectively. The loan payment includes payment for interest of ₱8,000.
 Deposits shown on the bank statement but not on the cash ledger represent collections of
accounts receivable.

How much is the deposit in transit?

160000
Answer:
Feedback
Deposit in transit: ₱160,000 deposit on 6/29.

The correct answer is: 160000

12. On December 31, 2020, Justin Corporation reported cash account balance per books of
P4,435,000 which included the following:

Cash in bank - demand deposit     1,350,000

Time deposit - 30 days        500,000
NSF check of customer returned by bank          20,000
Money market placement due on June 30, 2021     1,500,000
Savings deposit         100,000
IOU from an employee          10,000
Pension fund        600,000
Undeposited collections        215,000
Petty cash fund (bills and coins=P7,000,
         10,000
PCV=P3,000)
Check from a customer dated January 31, 2021          80,000
Check from a customer dated December 1 2020          50,000
TOTAL     4,435,000

Additional information:


 Check of P120,000 in payment of accounts payable was dated and recorded on November
30, 2020 but mailed to creditors on December 31, 2020.
 Check of P55,200 dated January 31, 2021 in payment of accounts payable was recorded and
mailed on December 31, 2020. It was encashed by the creditor on February 5, 2021.
 The cash receipts journal was held open until January 15, 2021, during which time P215,000
was collected and recorded as cash on hand (undeposited collections) on December 31,
2020.
 Check from a customer of P50,000 dated December 1 2020 was received and recorded by
Justine Corp. on December 5, 2020. It was not deposited to the bank upon the request of the
customer to avoid charges due to insufficiency of account balance.

What total amount of cash and cash equivalents should be reported on December 31, 2020?

2280200
Answer:
Feedback
The correct answer is: 2012200
13. Taken from the records of Girly Co. are the following:

How much is the adjusted balance of cash on November 30?

 2430
Answer:

Feedback

The correct answer is: 3000