PROBLEMS Problem 1-1 (IAA) 3340000 On December 31, 2019, Albania Company provided the following data: Cash in bank 3,000,000 ~ Time deposit - 30 days 1,000,000 “ Money market placement due on June 30, 2020 2,000,000 Saving deposit in closed bank 100,000 Sinking fund for bond payable due June 30, 2021 1,500,000 Petty cash fund 20,000 7 * The cash in bank included customer check of P200,00¢ outstanding for 18 months. 7 ks *, Check of P250,000 in payment of accounts payable was dated and recorded on December 31, 2019 but mailed to / creditors on January 15, 2020. *. Check of P100,000 dated January 31, 2020 in payment of accounts payable was recorded and mailed December 31, ~ 2019. *. The reporting period is the calendar year. The cash receipts journal was held upen until January 15, 2020 during which time an amount of P450,000 was ~ tty collected and recorded on December 31, 2019. i js) (wind Required: ; Prepare adjusting entries on December 31, 2019. unt of cash and cash equivalents on December 31, 2019. + of the items excluded from cash 2. Compute the total amor that should be reported 3. Explain the presentation and cash equivalents. 18Problem 1-2 (AA) 4 585 00 ‘ompany reported the following accounts ‘s on Argentina Cc December 31, 2019: Cash on hand Petty cash fund 1,000,000 ity Bank current account 50,000 PNB current account 2,000,000 BDO current account (overdraft) eae BSP treasury bill - 120 days sconsee - BPI time deposit — 90 days 2,000,000 _ Bond sinking fund 2,500,000 a customer postdated check h on hand included rder of P50,000. 000 and postal money ©! * The petty cash fund included unreplenished pe' h vouchers for 0. 00tpent an employee check for 5,000) dated January 31, 2020. leg ne me deposit is set aside for rly January 2020. fund is set aside for payment ber 31, 2020. * The cas: of P150, acquisition of land * The BPI ti to be made in ea * The bond sinking payable due Decem of bond Required: are adjusting entries 0 tal amount of cash @ of the items exclu n December 31, 2019. nd cash equivalents ded from cash 1. Prep 2, Compute the to! 3. Explain the presentation and cash equivalents.Problem 1-3 (LAA) T2520 Armenia Company reported t i - mies ae Pp he following information ie Cash on hand Petty cash fund 1,000,099 Cash in bank 50,009 Saving deposit aotte oo 2050009 oo \*/ Cash on hand fncluded the following: a. Customer check of P100,000 returned by bank Dece; 26, 2019 due to insufficient fund but ubdeguse redeposited and cleared by bank January 5, 2020, b. Customer check for P150,000 dated January 15, 2009 received December 22, 2019. c. Postal money orders received from customers, P200,000, L 4 The petty cash fund consisted of the following items: Currency and coins 2,000 Employees’ 1OUs , 10,000: Currency in envelope marked collections for Christmas party 5,000 Check drawn by Armenia payable to petty cashier 33,000 . 50,000 .) Check written and dated December 22, 2019 and / delivered to payee on January 5, 2020, P200,000. 5 31, * Check written December 26, 2019 and dated sa ‘00 2020 delivered to payee on December 26, 2019, P: Required: 1. Prepare adjusting entries on Decem 2, Compute the total cash on Decembe! ber 31, 2019- r 31, 2019-Problem 1-4 (PHILCPA Adapted) || Yog v00 " Callous Company reported th . December 31, 2019: © following accounts on Cash on hand Petty cash fund 200,000 Philippine Bank current account 20,000 City Bank current account No. 1 eam City Bank current account No. 2 (overdraft) ( okey ‘Asia Bank saving account sone ‘Asia Bank time deposit, 90 days 2 000/000 h on hand included the following items: Customer check for P35,000 returned by bank December 26, 2019 due to insufficient fund but subsequently d clearéd by the bank on January 10, 2020. redeposited an! * Cas! k for P15,000 dated January 10, 2020, Customer chec! ber 23, 2019. received Decem' * The petty cash fund consisted of the following items: Currency and coins 5,000 10Us from officers 2,000 cash vouchers 12,000 cho * 1000 Unreplenished petty hecks drawn by Callous Company ne Bank current account an recorded in December 2019 were the following: Check written and dated December 23, 2019 and delivered to payee on January 31, 2020, 25,000. anuary 30, 2020, December 26, 2019, dated J: ember 28, 2019, 45,000. * Included among the cl - against the Philippi Check written delivered to payee on De Required: quivalents. 1. Compute the total cash and cash é 2. Prepare adjusting entries on December 31, 2019. 91Problem 1-5 (ACP) a Zealous Company established a petty cash fund, 1, Established a petty cash fund of P10,000 on January 2. 2. Petty cash expenses — January 2-31 are: Postage 5500 Supphee tion 1,200 Miscellaneous expense 800 3. The fund is replenished on February 1 and increased by P5,000. Required: = Prepare journal entries to record the transactions under the fluctuating fund system and imprest fund system. Problem 1-6 (ACP) Zenith Company provided the following chronological transactions in relation to petty cash: 1. The entity established a petty cash fund of F 10,000. 2. Petty cash disbursements were: Postage 1,500 Supplies 3 3,000 8. Petty cash disbursements were: Transportation 1,000 Accounts payable . 3,500 4, Issued check for an amount to replenish the fund and bring the balance of the petty cash to P20,000. Required: Prepare journal entries to record the transactions under fluctuating fund system and imprest fund system. aceernnetitiiees stitial pera semen i it cactiProblem 1-7 (IAA) - Laborious Company closed the accounts entity provided the following transactions: m dune 30. The May 2 The entity established an imprest fund of P10,000 29 The fund is replenished. The petty cash items include: Currency and coin 2,000 Postage 1,000 Supplies : 3,000 Transportation 2,500 Miscellaneous expense 1,500 June30 The fund was not replenished. The fund is composed of the following: Currency and coin 6,000 Supplies 2,000 Postage 1,000 Transportation _ 1,000 July 15 The. fund is replenished and increased to -P15,000. Currency and coin Supplies Postage Transportation Miscellaneous expense Required: 3,000 3,500. 1,500 1,500 500 Prepare journal entries to record the transactions under imprest fund system and fluctuating fund system.eee Se Problem 1-8 (AA) 2 Tacit Company provided the following transactions: 2019 ; Nov. 2 The entity established an imprest petty cash fund of P10,000. 30 An examination of the cash fund disclosed: i 8,000 Currency and coin ; Memoranda showing expenditures for: Postage 2,000 Supplies 5,000 A check was drawn to replenish the fund and to increase its amount to P20,000. Dec. 31 The fund was not replenished. Currency andcoin 11,000 Memoranda showing expenditures for: Postage 3,000 Supplies 4,000 Deposit for 20 cases of softdrinks 2,000 2020 Jan.’ 2 The deposit for the 20 cases of softdrinks is collected. 31 A check was drawn to replenish the fund. Currency and coin 1,000 Postage stamps 500 Memoranda showing expenditures since : November 30, 2019 for: Postage 5,000 Supplies 6,000. : Payment of account 7,000 Required: : Prepare journal entries to record the transactions. 24Problem 1-9 (IAA) On December 1, 2019, Wack : imprest petty cash fund. 'y Company established an 2019 ad Dec. 1 Established an imprest petty writing a check on National rash Ar of 10,000 by nished the petty cash fund by writing a check 20 Reple’ on National Bank. The fund contained: Currency and coins 1,000 Vouchers for selling expenses 5,000 Vouchers for miscellaneous expenses 2.000 Vouchers for equipment 2,000 Dec. 31 The petty cash fund was not replenished. The fund contained: Currency and coins 6,000 Postdated employee's check 2,000 Vouchers for selling expenses 1,500 Vouchers for transportation 600 2020 Encashed the employee's check. The proceeds were Jan. 15 retained in the fund. . 81 Replenished the petty cash fund by writing 4 check on National Bank. The petty cash vouchers for January expenditures are: Distribution costs 500 Administrative expenses 2,000 ‘Transportation 1,000 Payment for supplier's invoice 1,200 Required: record the transactions. : 120 before 1. Prepare journal entries to 2. How much is the petty cash on January 31, 20: the replenishment? 26Problem 1-10 (AICPA Adapted) a i ation on Tranvia Company revealed the following inform December 31, 2019: 350,000 ~ Cash in checking account 750,000 Cash in money market account 9 ‘Treasury bill, purchased November 1, 201: 8,600,000 maturing January 31, 2020 6 Time deposit purchased December 1, 20: Loita maturing March 31, 2020 What amount should be reported as cash and cash equivalents on December 31, 2019? a. 1,100,000 b. 3,850,000 4,600,000 . 8,600,000 Problem 1-11 (LAA) Affable Company provided the following information at year-end comprising the cash account: Cash in bank ~ demand deposit 5,000,000 Cash on hand a 400,000 Postage stamps unused 5,000 Certificate of time deposit - 500,000 Money order , 50,000 Manager check 100,000 Traveler check : 1 000,000 Postdated customer check "500,000 What total amount’ should be reported as cash at year-end? a. 8,050,000 b. 7,050,000 © 6,550,000 d. 6,450,000 26problem 1-12 (AICPA Adapted) : Thor Company provided the following data on December 31, 2019: k balance 4,000,000 ~~ menpbalance ecoc an wn on Thor's account, payable to supplier, 000,000 * dated and recorded on ‘December 31, 2019 but not mailed until January 31, 2020 600,000 7 id 2,000,000 Cashin sinking fun On December 31, 2019, w! under current assets? @ 4,500,000 b. 5,500,000 hat amount should be reported as cash 13 (AICPA Adapted) Problem 1- d the following account balanc Joana Company ha es on December 31, 2019: Petty cash fund 7 50,000 ~ Cash on hant 500,000 ~ Cash in bank — current account 4,000,000 Cash in bank — payroll account 1,000,000 “ ‘Time deposit 2,000,000 ~ Cashin _ restricted account for plant addition, ex] to be disbursed in early 2020 500,000 Cash in sinking fund set aside for bond payable due June 30, 2020 1,500,000 fund included unreplenished December 2019 The petty cash uchers of P5,000 and employee IOU of petty cash expense vo! P5,000. The cash on hand included a P100,000 check payable to the Xx entity dated January 31, 2020. d cash ¥ What total amount sh 8 ould bi equivalents on December 31, oo lense ee a. 6,940,000 27Problem 1-14 (AICPA Adapted) oe era st 2019, Lamentable Company had the following ¢ Cash in bank ~ curre, nt account, 6,000,000 ~ Petty cash fund (all funds were reimbursed at year-end) 50,000 ~ le deposit ~ three months, due January 15, 2020 2,500,000 - Saving deposit 1,000,000 Cash in bank included P400,000 of compensating balance against short term rrowing arrangement. x The compensating balance is legally restricted ag to withdrawal, What total amount should be reported as cash and cash equivalents? a. 9,500,000 (©) 9,150,000° © 9,100,000 d. 6,950,000 Problem 1-15 (AICPA Adapted) - Baloney Company had the following account balances on December 31, 2019: . aueunssrarean a encanta Cash in bank 2,250,000 Cash on hand . 125,000 Cash restricted for addition to plant in 2020 1,600,000 Cash in bank included P600,000 of Compensating balance | against short-term borrowing arrangement, The compensating balance is not legally restricted as to withdrawal. What total amount should be reported as cash on December 31, 20197 a. 1,775,000 . 2,250,000 ‘ ‘€) 2,375,000 d. 3,975,000 . f 28Arul - 2019 of P8,000.0 oblem 1-16 (AICPA Adapted) ba Company had a checkbook balance on Di 100 and held the following ranarre oere pr Check payable to ‘Aruba, dated January 5, 2020, jncluded in Deoember gi checkbook balance 2,000,000 heck payable to Aruba, deposited December 20, dincluded in December 31 checkbook balance, ed by bank on December 30, stamped “NSF”. The check was redeposited January 2, 2020, 500,000 d January 3, 2020. and cleare Check drawn on Aruba's account and payable toa vendor, dated and recorded December 31 but not mailed untildanuary 15, 2020 1,500,000 Cash on hand ~ undeposited collections 400,000 Change fund 40,000 Time deposit for plant expansion 1,000,000 Treasury bill 2,500,000 Money market placement 3,000,000 Postage stamps unused 10,000 cash on j, What total amount should be reported as December 31, 2019? a, 7,400,000 Or 7 8,440,000 d. 7,450,000 amount should be reported as cash 2. What total er 31, 2019? equivalents on Decemb a. 6,500,000 b. 3,000,000 ©) 5,500,000 d. 2,500,000ie Se gw See Maree ot yee ae oe Problem 1-17 (IAA) Ecstasy Company reported the following informat; end of the current year. ‘ation at the * Investment securities of P1,000,000, These iti share investments in entities that are traded wt ae Philippine Stock Exchange. n the Investment Securities of P2,000,000, iti government treasury bills. — Pee ae The treasury bills have a 10-year term and hase: A d on December 31 at which time th. sate til they erties 7 le they had two months to go Cash of P3,400,000 in th e form of coin, currency, account and checking ai saving iccount, Investment securities of P1,500,000. 2 These securities are commercial papers or money marke t placements. What total amount should be reported as cash at the end of current year? ; @ 3,400,000 b. 5,400,000 c. 4,900,000 d. 6,900,000 ted as cash t total amount should be repor . eect at the end of current year? ‘@) 3,500,000 . 4,500,000 c. 1,500,000 d. 2,500,000 30oblem 1-18 (PHILCPA Adapted) Pr Marjorie Company entabliah i od a with the following information! potty cawh fund of P60,000 Coins and curren Potty eagh vouchers: Gasoline i 22,000 Medical aupplies 4,000 Repaire 1,000 jou from an oN 1,600 Check draw? payable to the order of Ann Ci 9,600 etodian, representing her salary ius, potty cash shock of an employee returned by bank marked “NSF” oN ie Asheet of paper with the names of several employees smn er with @ contribution for a birthday party and attached to the sheet of paper is a currency 0! 5,000 What amount of petty cash fund should be reported? a, 42,000 Bs ‘ 27,000 o) 37,000 d. 22, Problem 1-19 (PHILCPA Adapted) Admirable Company had a petty cash fund which included the following details: Coins and currency 2,000 e Paid vouchers ‘Transportation 600 Gasoline 400 Office supplies 500 Postage stamps 300 Due from employees 1,200 3,000 Employee's check retarned by bank marked “NSF” ‘ 1,000 Check drawn to the order “of of petty cash custodian 4,000 What amount of petty cash should be reported? a, 2,000 b. 7,000 See . 9,000 31Cee Problem 1-20 (ACP) reported the following information in relation e Seep esamber 31, 2019: 7 * Checkbook balance, P4,000,000. * Undeposited collections, P400,000. * A customer check amounting to P200,000 dated Janu: 2, 2020 was included in the December 31, 2019 checkbook balance. : * Another customer check for P500,000 deposited on December.22, 2019 was included in the checkbook balance but returned by the bank for insufficiency of fund. This check was redeposited on December 26, 2019 and cleared two days later. * A P400,000 check payable to supplier dated and recorded on December 30, 2019 was mailed on January 16,2020. * A petty cash fund of P50,000 comprised the following on December 31, 2019: Coins and currencies 8,000) Petty cash vouchers 40,000 Refundable deposit for returnable containers 5,000 “50,000 * A check of P40,000 was drawn on December 31, 2019 payable to Petty Cash. 1. What is the adjusted cash in bank on December 31, 2019? 4,600,000 ' 4,200,000 c. 4,400,000 d. 3,700,000 2, What total amount should be reported as cash on December 31, 2019? 3 (a) 4,645,000 (4,845,000 c. 4,600,000 d. 4,650,000 32