Problem 1-3 (IAA) : ‘Armenia Company reported the following information on December 31, 2019: * Cash on hand ary Petty cash fund : 60 ‘ 4,000,600 Cash in bank 2,000,000 Saving deposit Soe 7,050,000 * Cash on hand included the following: ~y. Customer check of P100,000 returned by bank December 26, 2019 due to insufficient fund but subsequently redeposited and cleared by bank January 5, 2020. - b. Customer check for P150,000 dated January 15, 2020 : received December 22, 2019. c. Postal money orders received from customers, P200,000. The petty cash fund consisted of the following items: Currency and coins £2,000) Employees’ 10Us 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. -_/* Check written December 26, 2019 and dated January 31, 2020 delivered to payee on December 26, 2019, P300,000. Required: d 1. Prepare adjusting entries on December 31, 2019. 2. Compute the total cash on December 31, 2019. 20 scanned with GamScanneProblem 1-4 (PHILCPA Adapted) _.; Callous Company reported the following accounts on December 31, 2019: : ” Cash on hand “200,000 * / Petty cash fund 20,000 ~ Philippine Bank current account 5,000,000 “City Bank current account No. 1 4,000,000 City Bank current account No. 2 (overdraft) re“ “ ( 100,000) Asia Bank saving account 250,000 Asia Bank time deposit, 90 days - 2,000,000 * Cash on hand inclyded the following items: Customer check for P35,000 returned by bank December 26, 2019 due to insufficient fund but subsequently redeposited and clearéd by the bank on January 10, 2020. Customer check for P15,000 dated January 10, 2020, received December 23, 2019. The petty cash fund consisted of the following items: Currency and coins 5,000 10Us from officers 2,000 Unreplenished petty cash vouchers 12,000 * Included among the checks drawn by Callous Company against the Philippine Bank current account and recorded in December 2019 were the following: Check written and dated December 23, 2019 and delivered to payee on January 31 P25,000. Check written December 26, 2019, dated January 30, 2020, ~ delivered to payee on December 28, 2019, P45,000. Required: : 1. Compute the total cash and cash equivalents. 2. Prepare adjusting entries on December 31, 2019. 21 scanned witn GamscanneProblem 1-5 (ACP) 2 Zealous Company established a petty cash fund, L Established a petty cash fund of P10,000 on January 9. 2, Petty cash expenses — January 2-31 are: 1,500 Postage Supplies 5,500 Transportation 1,200 Miscellaneous expensé 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 # 10,000. 2. Petty cash disbursements were: Postage 1,500 Supplies 3,000 3. 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. 22 scanned with GamScanneProblem 1-7 (IAA) z Laborious Company closed the accounts on June 30. The “ entity provided the following transactions: 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 June 30 The fund was not replenished. The fund is composed of the following: Currency and coin 6,000 Supplies od 2,000 Postage 1,000 ‘Transportation 1,000 duly 15 The. fund is replenished and increased to P15,000. Currency and coin 3,000 Supplies 3,500 Postage 1,500 ‘Transportation 1,500 Miscellaneous expense 500 Required: Prepare journal ‘entries to record the transactions under imprest fund system and fluctuating fund system. 23 scanned with GamScanneProblem 1-8 (AA) is Tacit Company provided the following transactions; 2019 Noy. 2 The entity established an imprest petty cash fang . of P10,000. 30 An examination of the cash fund disclosed: Currency and coin , 3,000 Memoranda showing expenditures for: Postage 2,009 Supplies. 5,000 A check was drawn to replenish the fund and ¢, increase its amount to P20,000. Dec. 31 The fund was not replenished. Cwrency 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 ig 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: 7 Prepare journal entries to record the transactions. 24 scanned with GamScanneProblem 1-9 (IAA) On December 1, 2019, Wacky Company established an imprest petty cash fund. . 2019 Dec. 1 Established an imprest petty cash fund of P10,000 by writing a check on National Bank. 20 Replenished the petty cash fund by writing a check 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 500 2020 Jan. 15 Encashed the employee’s check. The proceeds were retained in the fund. 31 Replenished the petty cash fund by writing a check on National Bank. The petty cash vouchers for January, expenditures are: Distribution costs s 500 Administrative expenses 2,000 ‘Transportation ; 1,000 Payment for supplier's invoice 1,200 Required: 1. Prepare journal entries to record, the transactions. 2. How much is the petty cash on January 31, 2020 before the replenishment? 25 Canned With Carrscanne a)Pyoblem 1-10 (AICPA Adapted) : Tranvia Company revealed the following information on December 31, 2019: 350, “Cash in checking account a0 200 _Cash in money market account ft Treasury bill, purchased November 1, 2019 2,500 000 maturing January 31, 2020 19 500, Time deposit purchased December 1, 2 4.00000 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 ec. 4,600,000 d. 8,600,000 Problem 1-11 (IAA) Affable Company provided the following information at year-end comprising the cash account: “ Cash in bank — demand deposit 5,000,000 Cashon hand a 400,000 Postage stamps unused 5,000 Certificate of time deposit 1,500,000 Money order "50,000 Manager check 100,000 ~ Traveler check ” . 1,000%000 Postdated customer check "500,000 What total amountshould be reported as cash at year-end? a. 8,050,000 b. 7,050,000 6,550,000 d. 6,450,000 . ; 26 scanned with GamScanneProblem 1-12 (AICPA Adapted) = Thor Company provided the following data on December 31, 2019: : “ Checkbook balance 4,000,000 Bank statement balance 5,000,000 Check drawn on Thor's account, payable to supplier, dated-and recorded on December 31, 2019 but not mailed until January 31, 2020 + 500,000 Cash in sinking fund 2,000,000 On December 31, 2019, what amount should be reported as cash under current assets? -a 4,500,000 b. -5,500,000 c. 3,500,000 _d. 6,500,000. : Problem 1-13 (AICPA Adapted) Joana Company had the following account balances on December 31, 2019: / Petty cash fund 50,000 ~Cash on hand 500,000 ~ Cash in bank — current account 4,000,000 “Cash in bank ~ payroll account 1,000,000 Time deposit 2,000,000 ~ Cash in bank ~ restricted account for plant addition, expected to be disbursed in early 2020 500,000 Cash in sinking fund set aside for bond payable due June 30, 2020 1,500,000 The petty cash fund included unreplenished December 2019 petty cash expense vouchers of P5,000 and employee IOU of 5,000. The cash on hand included a P100,000 check payable to the entity dated January 31, 2020. What total amount should be reported as cash and cash equivalents on December 31, 2019? a. 6,940,000 ‘ b. 8,940,000 7,940,000 “d. 7,440,000 27 scanned witn GamscanneProblem 1-14 (AICPA Adapted) in December 31, 2019, Lamentable Company had the, following cash balances: 6,000, Cash in bank —eurren fe yore roimbursed at-year-end) 30-000 Petty cash fund (all fu 15,2020 2,500,001 Time deposit - three months, due January 1,000,000 Saving deposit ; Cash in bank included P400,000 of compensating balance against short term borrowing arrangement. The compensating balance is legally restricted as to withdrawal. What total amount should be reported as cash and cash equivalents? a. 9,500,000 ° b. 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: ~ 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, 2019? a. 1,775,000 b. 2,250,000 . & 2,375,000 . 4 d. 3,975,000 28 scanned with GamScanneProblem 1-16 (AICPA Adapted) Aruba Company had a checkbook balance on December 31, 2019 of P8,000,000 and held the following items in the safe: Check payable to Aruba, dated January 5, 2020, included in December 31 checkbook balance 2,000,000 Check payable to Aruba, deposited December 20, and included in December 31 checkbook balance, but returned by bank on December 30, stamped “NSF”. The check was redeposited January 2, 2020, . and cleared January 3, 2020. 500,000 Check drawn on Aruba's account and payable to a vendor, dated and recorded December 31 but not mailed until January 15, 2020 1,500,000 Cash on hand — undeposited collections 400,000 Change fund 40,000 ‘Time deposit for plantexpansion 1,000,000 Treasury bill 2,500,000 ‘Money market placement . 3,000,000 Postage stamps unused 10,000 1. What total amount should be reported as moon on December 31, 2019? 3 a. 7,400,000 bo 7,440,000 c. 8,440,000 d._ 7,450,000 2. What total amount should be reported as cash equivalents on December 31, 2019? a. 6,500,000 b. 3,000,000 _o- 5,500,000 d. 2,500,000 475, 29 scanned with GamScanneProblem 1-17 (IAA) Ecstasy Company reported the following information at the end of the current year. 1,000,000. These securities arg Pe ent securities of P Investment secu 3 that are traded in the share investments in entitie: Philippine Stock Exchange. As a result, the shares are very actively traded in the market. * Investment securities of P2,000,000. These securities arg government treasury bills. The treasury bills have a 10-year term and purchaseq on December 31 at which time they had two months to go until they mature. * ash_of P3,400,000 in the for'n of coin, currency, saving account and checking account. -- Investment securities of P1,500,000. These securities are ~ commercial papers or money market placements. The term of the commercial papers is nine months and the instruments were purchased on December 31 at which time they had three months to go until they mature. 1. What total amount should be reported as cash at the end of current year? . a. 3,400,000 b. 5,400,000 ce. 4,900,000 r d. 6,900,000 ‘ 2. What total amount should be reported as cash equivalents at the end of current year? 3,500,000 ‘ 4,500,000 1,500,000 2,500,000 asap 30 scanned witn CamScanneProblem 1-18 (PHILCPA Adapted) ~* Marjorie Company established a petty cash fund of P50,000 with the following information: “ Coins and currency 22,000 Petty cash vouchers; Gasoline A 3,000 Medical supplies 1,000 Repairs 1,500 I0U from an employee 3,500 Check drawn payable to the order of Ann Cruz, petty cash custodian, representing her salary 15,000 Check of an employee returned by bank marked "NSF" 3,000 Asheet of paper with the names of several employees together with a contribution for a birthday party and attached tothe sheetofpaperisacurrencyof | 5,000 What amount of petty cash fund should be reported? a. 42,000 . b. 27,000 : ¢. 37,000 . d. 22,000 : Problem 1-19 (PHILCPA Adapted) Admirable Company had a petty cash fund which included the following details: ~, Coins and currency 2,000 Paid vouchers : Transportation 600 Gasoline 400 Office supplies 500 Postage stamps. 300 Due from employees 1,200 3,000 Employee's check returned 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 c. 6,000 a d. 9,000 31 scanned witn GamscanneProblem 1-20 (ACP) . ; Love Company reported the following information in relation to cash on December 31, 2019: * Checkbook balance, P4,000,000. * Undeposited collections, P400,000. * A customer check amounting to P200,000 dated January 2, 2020 was included in the December 31, 2019 checkbook balance. * Another ctistomer 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 5,000 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 payuble to Petty Cash. 1. What is the adjusted cash in bank on December 31, 2019? a. 4,600,000 b. 4,200,000 ¢. 4,400,000 d. 3,700,000 . . 2. What total amount should be reported as cash on December 31, 2019? a., 4,645,000 b. 4,845,000 . p c. 4,600,000 d, 4,650,000 82 scanned with GamScanne