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Sol. Man. - Chapter 2 - Cash & Cash Equivalents - Ia Part 1a
Sol. Man. - Chapter 2 - Cash & Cash Equivalents - Ia Part 1a
Sol. Man. - Chapter 2 - Cash & Cash Equivalents - Ia Part 1a
2. Solution:
Checks drawn but not yet issued to payees 120,000
Customers’ checks dated Dec. 31, 20x1 40,000
SML’s check dated Jan. 15, 20x2 already mailed to payee 16,000
Cash on hand 130,000
Employees’ checks representing unclaimed salaries,
14,000
held by the treasurer
Petty cash fund (fully replenished) 20,000
Total 340,000
3. D
4. Solution:
Treasury bill acquired on Nov. 1, 20x1 300,000
Investment in redeemable preference shares 1,600,000
Three-month time deposit with UCPB - unrestricted 950,000
Total 2,850,000
6. D
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7. Solution: (2,250,000 + 125,000) = 2,375,000
8. A
9. Solution:
(40,000 + 100,000 – 10,000 overdraft – 20,000 compensating bal. ) =
110,000
10. D
11. A
12. B
13. Solution:
(a)
Petty Cash ................................ 1,400
Cash in bank................................... 1,400
(b) No entry
(c)
Shipping Expense .......................... 740
Travel Expense ............................ 240
Postage Expense ........................... 230
Miscellaneous Supplies .................... 170
Employee Receivables ...................... 8
Cash Over and Short ....................... 4
Cash in bank................................... 1,392
(d)
Cash in bank ...................................... 400
Petty Cash ............................. 400
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PROBLEM 3: EXERCISES
1. 350,000 + 250,000 + 800,000 = 1,400,000
3. Solution:
Cash in banks (2,250,000 – 600,000) 1,650,000
Cash on hand 125,000
Adjusted balance 1,775,000
4. Solution:
Checking account #101 175,000
Checking account #201 (10,000)
Money market account 25,000
90-day certificate of deposit, due 2/28/04 50,000
Cash and cash equivalents 240,000
5. Solution:
Checkbook balance - 12/31/x3 5,000
NSF check (500)
Undelivered check 300
Adjusted balance 4,800
1. Solution:
Exhibit No. Amount
Cash on hand 1 5,882.00
Cash in bank - Savings 3 522,277.54
Cash in bank - Current 4 645,353.03
Total cash 1,173,512.57
Notes:
➢ Exhibit 2.1 is a post-dated customer check.
➢ Exhibit 2.2 is an unreleased company check. Although this
check will increase the “Cash in bank” account per records, it
should not be included in the solution above because the amount
of “Cash in bank” in the solution is derived from the bank
statement and not from the Ledger.
➢ The unused credit in Exhibit 5 may be disclosed but it should not
be included in cash.
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2. Solutions:
Requirement (a):
ABC Co.
CASH COUNT SHEET
FUND: PETTY CASH FUND
DATE: DEC. 21, 20x1
CHECKS
- - - -
4
Requirement (b):
JOURNAL
DATE ACCOUNTS Ref. Debit Credit
12.3.20X1 Petty cash fund 5,000.00
Cash in bank 5,000.00
3. The students check their own work, grade themselves and submit their
grades to the teacher for recording.
2. D
Solution:
Per count (400 + 90) = 490 less Accountability 500 = 10 shortage
3. D
5
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