PROBLEM 1.

CASH AND CASH EQUIVALENTS

REQUIRED:
CASH ON HAND
Unadjusted Cash on Hand 500,000
NSF check -40,000
Post dated check received -20,000
Adjusted cash on hand 440,000

PETTY CASH FUND

Petty cash fund per total 10,100
Employee's vales -1,600
Currency in envelop marked -1,200
"collections for charity"
Unreplenished petty cash vouchers -1,300
Adjusted Petty cash fund 6,000

BPI CURRENT ACCOUNT

Unadjusted BPI current account 1,000,000
Unreleased check 80,000
Post dated check delivered 40,000
Adjusted BPI current account 1,120,000

CASH AND CASH EQUIVALENTS

Cash on hand 440,000
Petty cash fund 6,000
BPI current account 1,120,000
Security Bank current account No.01 1,080,000
Security Bank current account No.02 -80,000
PNB time deposit 500,000
Adjusted Cash and cash equivalents 3,066,000
 PROBLEM 2. BANK RECONCILIATION

REQUIRED:
ADJUSTED CASH IN BANK BALANCE
Bank Balance 547,800
Add: Deposits in transit 134,250
Bank error 6,000 140,250
Total 688,050
Less: Outstanding checks 98,850
Adjusted bank balance 589,200

Book Balance 687,570

Add: Book error 15,000
Notes payable 46,290 61,290
Total 748,860
Less: Dishonored note 142,650
Book error 1,950
NSF check 12,960
Bank service charge 2,100 159,660
Adjusted book balance 589,200

REQUIRED:
NET ADJUSTMENT TO CASH AS OF DECEMBER 31, 20X1
Unadjusted balance per book 687,570
Adjusted balance per book -589,200
Net adjustment to cash 98,370