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1.
The following data pertain to Reggie Corporation on December 31, 2014:

Current account at Planters Bank P900,000
Current account at Philippine National Bank (50,000)
Payroll account 250,000
Foreign bank account (in equivalent pesos) 400,000
Savings deposit in a closed bank 75,000
Postage stamps 500
Employee’s postdated check 2,000
IOU from employees 5,000
Credit memo from a vendor for a purchase return 10,000
Traveler’s check 25,000
Money order 15,000
Petty cash fund (P2,000 in currency and expense receipts for P3,000) 5,000
Pension fund 1,000,000
DAIF check of customer 7,500
Customer’s check dated 1/1/15 40,000
Time deposit – 30 days 100,000
Money market placement (due 6/30/15) 250,000
Treasury bills, due 3/31/15 (purchased 12/31/14) 100,000
Treasury bills, due 1/31/15 (purchased 1/1/14) 150,000
Compute for the cash and cash equivalents that should be reported on the December 31, 2014
statement of financial position.
a. P1,437,000
b. P1,542,000
c. P1,892,000
d. P1,792,000
2. Ralf Corporation had the following account balances at December 31, 2014:
Cash on hand and in bank P2,500,000
Cash restricted for bonds payable due on June 30, 2015 1,000,000
Time deposit 3,000,000
Savings deposit set aside for dividends payable on June 30, 2015 500,000
In the current assets section of Ralf’s December 31, 2014 statement of financial position, what
total amount should be reported as cash and cash equivalents?
a. P7,000,000
b. P6,000,000
c. P6,500,000
d. P5,500,000
3. On December 31, 2014, Alfonso Company had the following cash balances:
Cash in bank P15,000,000
Petty cash fund 50,000
Time deposit 5,000,000
Saving deposit 2,000,000
Cash in bank includes P500,000 of compensating balance against short term borrowing
arrangement at December 31, 2014. The compensating balance is legally restricted as to
withdrawal by Alfonso. A check of P300,000 dated January 15, 2015 in payment of accounts
payable was recorded and mailed on December 31, 2014. In the current assets section of the
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December 31, 2014 statement of financial position, what amount should be reported as “cash and
cash equivalents”?
a. P21,850,000
b. P16,850,000
c. P21,800,000
d. P14,850,000
4. On January 1, 2014, Tinoc Company borrows P2,000,000 from National Bank at 12% annual
interest. In addition, Tinoc is required to keep a compensatory balance of P200,000 on deposit at
National Bank which will earn interest at 4%. The effective interest that Tinoc pays on its
P2,000,000 loan is
a. 10.0%
b. 11.6%
c. 12.0%
d. 12.8%
5. Cash in bank balance of William Co. on January 1, 2014 was P70,000 representing 35% paid-up
capital of its authorized share capital of P200,000. During the year you ascertained the following
postings to some accounts, as follows:
Debit Credit
Petty cash fund P 2,000
Accounts receivable trade 450,000 P290,000
Subscription receivable 60,000 50,000
Delivery equipment 50,000
Accounts payable trade 280,000 430,000
Bank loan 35,000 80,000
Accrued expenses 1,500
Subscribed share capital 60,000
Unissued share capital 130,000
Authorized share capital 200,000
Sales 450,000
Purchases 430,000
Expenses (including depreciation of P5,000 and accrued
expenses of P1,500) 90,000
Cash in bank balance at December 31, 2014 was

a. P41,500
b. P33,000
c. P34,500
d. P39,500
6. An office supplies enterprise, operating on calendar-year basis, has the following data in its
accounting records:
01/01 12/31
Cash P 47,000
Inventory 101,000 P 93,000
Accounts receivable 82,000 116,000
Accounts payable 68,000 63,000
Sales 1,150,000
Cost of goods sold 900,000
Operating expenses 200,000
What is the expected cash balance for December 31?
a. P 50,000
b. P 66,000
c. P 76,000
d. P134,000
7. The petty cash fund of Guiguinto Company on December 31, 2014 is composed of the following:
Coins and currencies P14,000

Petty cash vouchers:
Gasoline payments 3,000
Supplies 1,000
Cash advances to employees 2,000
Employee’s check returned by bank marked NSF 5,000
Check drawn by the company payable to the order of the petty cash
custodian, representing her salary 20,000
A sheet of paper with names of employees together with contribution for
a birthday gift of a co-employee in the amount of 8,000
P53,000
8. The following data pertaining to the cash transactions and bank account of Mandirigma Company
for the month of May are available to you:
Cash balance, per records, May 31 P17,194

Cash balance, per bank statement, 5/31 31,948
Bank service charge for May 109
Debit memo for the cost of printed checks delivered by the bank 125
Outstanding checks, May 31 6,728
Deposit of May 30 not recorded by bank until June 1 4,880
Proceeds of a bank loan of May 30, net of interest of P300 5,700
Proceeds from a customer’s promissory note, including interest of P100 8,100
Check No. 2772 issued to a supplier entered in the accounting records at
P2,100 but deducted in the bank statement at an erroneous amount of 1,200
Stolen check lacking an authorized signature, deducted from Mandirigma’s
account by the bank in error 800
Customer’s check returned by the bank marked NSF; no entry has been made
in the accounting records to record the returned check 760
What is the correct cash balance at May 31?

a. P29,200
b. P30,300
c. P30,000
d. P30,900
9. The information below is from the books of the Seminole Corporation on June 30:
Balance per bank statement P11,164

Receipts recorded but no yet deposited in the bank 1,340
Bank charges not recorded 16
Note collected by bank and not recorded on books 1,120
Outstanding checks 1,100
NSF checks – not recorded on books nor redeposited 160
Assuming no errors were made, compute the cash balance per books on June 30 before any
reconciliation adjustments,
a. P11,404
b. P12,348
c. P10,460
d. P10,220
10. The cash in bank account of S-mart, Inc. for April 2014 showed an ending balance of P129,298.
Deposits in transit on April 30 was P18,200. Outstanding checks as of April 30, were P59,435,
including a P5,000 check which the bank had certified on April 27. During the month of April,
the bank charged back NSF checks in the amount of P3,435 of which P1,835 had been
redeposited by April 20. On April 23, the bank charged S-Mart’s account for a P2,200 items
which should have been charged against K-mart, Inc., the error was not detected by the bank.
During April, the proceeds from the notes collected by the bank for S-Mart, Inc. was P7,548 and
charges for this services was P18.
How much is the unadjusted balance per bank on April 30?
a. P 95,263
b. P 88,333
c. P173,663
d. P169,263
Use the following information for the next two questions.

Shown below is the bank reconciliation for YOUR Company for May 2014:
Balance per bank, May 31, 2014 P75,000

Add: Deposits in transit 12,000
Total 87,000
Less: Outstanding checks P14,000
Bank credit recorded in error 5,000 19,000
Cash balance per books, 5/31/14 P68,000
The bank statement for June 2014 contains the following data:
Total deposits P55,000

Total charges, including an NSF check of P4,000 and a service charge of P200 48,000
All outstanding checks on May 31, 2014, including the bank credit, were cleared in the bank in June
2014.
There were outstanding checks of P15,000 and deposits in transit of P19,000 on June 30, 2014.
11. What is the cash balance per bank on June 30,2014

a. P75,000
b. P86,000
c. P82,000
d. P86,200
12. What is the cash balance per books on June 30, 2014?
a. P73,800
b. P90,200
c. P88,200
d. P94,400
13. On December 31, 2014, the cash account of Jacq Company has a debit balance of P3,500,000. An
analysis of the cash account shows the following details:
Undeposited collections P 60,000

Cash in bank-PCIB checking account 500,000
Cash in bank-PNB (overdraft) (50,000)
Undeposited NSF check received from a customer, dated December 1, 2014 15,000
Undeposited check from a customer, dated January 15, 2015 25,000
Cash in bank-PCIB (fund for payroll) 150,000
Cash in bank-PCIB (savings deposit) 100,000
Cash in bank-PCIB (money market instrument, 90 days) 2,000,000
Cash in foreign bank (restricted) 100,000
IOUs from officers 30,000
Sinking fund cash 450,000
Listed stock held as temporary investment 120,000
P3,500,000
Cash and cash equivalents on Jacq’s December 31, 2014 statement of financial position should be
a. P2,760,000
b. P2,810,000
c. P2,885,000
d. P2,935,000
14. The following items were included as cash in the books of Gotch Co.:
Checking account at Security Bank (P1,200)
Checking account at BPI 5,335
Checking account at Citytrust used for a payment of salaries 5,500
Postage stamps 107
Employee’s post-dated check 2,300
I.O.U from an employee 200
A check marked “DAIF” 1,250
Postal money order 500
Petty cash fund (P324 in expense receipts) 500
Certificate of time deposit with BPI 5,000
A gold ring surrendered as security by a customer who lost his wallet (at market
value) 1,500
The correct amount that should be reported as cash is

a. P11,835
b. P11,011
c. P16,511
d. P11,511
15. Burr Company had the following account balances at December 31, 2014:
Cash in banks P2,250,000
Cash on hand 125,000
Cash legally restricted for additions to plant (expected
to be disbursed in 2015) 1,600,000
Cash in banks included P600,000 of compensating balances against short-term borrowing
arrangements. The compensating balances are not legally restricted as to withdrawal by Burr. In
the current assets section of Burr’s December 31, 2014 statement of financial position total cash
should be reported at
a. P1,775,000
b. P2,250,000
c. P2,375,000
d. P3,975,000
16. Ral Corp.’s checkbook balance on December 31, 2014 was P5,000. In addition, Ral held the
following items in its safe on that date:
Check payable to Ral Corp., dated January 2, 2015, in payment of a sale
made in December 2014, not included in December 31 checkbook
balance P2,000
Check payable to Ral Corp., deposited December 15 and included in
December 31 checkbook balance, but returned by bank on
December 30 stamped “NSF.” The check was redeposited on
January 2, 2015, and cleared on January 9 500
Check drawn on Ral Corp’s account, payable to a vendor, dated and
recorded in Ral’s books on December 31 but not mailed until
January 10, 2015 300
The proper amount to be shown as Cash on Ral’s statement of financial position at December 31,
2014, is
a. P4,800
b. P5,300
c. P6,500
d. P6,800
17. Trans Co. had the following balances at December 31, 2014:
Cash in checking account P35,000
Cash in money market account 75,000
PH Treasury bill, purchased 11/1/2014, maturing 1/31/2015 350,000
PH Treasury bill, purchased 12/1/2014, maturing 3/31/2015 400,000
Tran’s policy is to treat as cash equivalents all highly liquid investments with a maturity of three
months or less when purchased. What amount should Trans report as cash and cash equivalents in
its December 31, 2014 statement of financial position?
a. P110,000
b. P385,000
c. P460,000
d. P860,000
18. Aguinaldo Corporation had the following transactions in its first year of operations:
Sales (90% collected in the first year) P750,000

Disbursements for costs and expenses 600,000
Purchases of equipment for cash 200,000
Proceeds from issuance of ordinary shares 250,000
Payments on short-term borrowings 25,000
Proceeds from short-term borrowings 50,000
Depreciation on equipment 40,000
Disbursements for income taxes 45,000
Bad debt write-offs 30,000
What is the cash balance at December 31 of the first year?

a. P 75,000
b. P105,000
c. P 85,000
d. P140,000
19. If a petty cash fund is established in the amount of P250, and contains P200 in cash and P45 in
receipts for disbursements when it is replenished, the journal entry to record replenishment
should include credit to the following accounts
a. Petty Cash, P45.
b. Petty Cash, P50.
c. Cash, 45; Cash Over and Short, P5.
d. Cash, P50.
20. In preparing its August 31, 2014 bank reconciliation, Apex Corp. has available the following
information:
Balance per bank statement, 8/31/14 P18,050
Deposit in transit, 8/31/14 3,250
Return of customer’s check for insufficient funds, 8/31/14 600
Outstanding checks, 8/31/14 2,750
Bank service charges for August 100
At August 31, 2014, Apex’s correct cash balance is

a. P18,550
b. P17,950
c. P17,850
d. P17,550
21. Poe, Inc. had the following bank reconciliation at March 31, 2014:
Balance per bank statement, 3/31/14 P46,500
Add: Deposit in transit 10,300
56,800
Less: Outstanding checks 12,600
Balance per books, 3/31/14 P44,200
Data per bank for the month of April 2014 follow:

Deposits P58,400
Disbursements 49,700
All reconciling items at March 31, 2014, cleared the bank in April. Outstanding checks at April
30, 2014, totaled P7,000. There were no deposits in transit at April 30, 2014. What is the cash
balance per books at April 30,2014?
a. P48,200
b. P52,900
c. P55,200
d. P58,500
22. The bookkeeper of Santa Clara Co. recently prepared the following bank reconciliation:
Santa Clara Co.

Bank Reconciliation
December 31, 2014
Balance per bank statement P126, 420

Add:
Deposit in transit P8,700
Checkbook printing charge 210
Error made in recording check No. 25 (issued in December) 1,600
NSF check 5,000 15,510
P141, 930
Deduct:
Outstanding checks P4,480
Note collected by bank (includes P50 interest) 9,500 13,980
P127,950
Santa Clara has P9,100 cash on hand on December 31, 2014.
The amount Santa Clara should report as cash on the statement of financial position as of
December 31, 2014 should be
a. P120,260
b. P139,740
c. 130,640
d. P132,240
23. Reconciliation of Heaven Company’s bank account at May 31, 2014 is:
Balance per bank statement 2,100,000
Deposits in transit 300,000
Checks outstanding (30,000)
Correct cash balance 2,370,000
Balance per book 2,372,000

Bank service charge (2,000)
Correct cash balance 2,370,000
June data are as follows:

Bank
Total credits P1,620,000
Total debits 2,300,000
Collection by bank (400,000 note plus interest) 420,000
NSF check 10,000
Balance 1,420,000
Books
Deposits recorded 1,800,000
Checks recorded 2,360,000
Balance 1,810,000
The deposits in transit on June 30, 2014 amount to

a. P120,000
b. P480,000
c. P900,000
d. P 0
24. The following information was included in the bank reconciliation for Ryan, Inc. for June.
Assume all other reconciling items are listed.
Checks and charges recorded by bank in June, including a June service charge of P600 P344,200
Service charge made by bank in May and recorded in the books in June 400
Total of credits to Cash in all journals during June 396,040
Customer’s NSF check returned as a bank charge in June (no entry made on books) 2,000
Customer’s NSF check returned in May and redeposited in June (no entry made on
Books in either May or June) 5,000
Outstanding checks at June 30 265,200
Deposits in transit at June 30 12,000
What was the total of outstanding checks at the beginning of June?

a. P319, 240
b. P211, 260
c. P219,360
d. P213,160
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1.

The following data pertain to Reggie Corporation on December 31, 2014:

Cash in bank balance at December 31, 2014 was

Coins and currencies P14,000

Cash balance, per records, May 31 P17,194

What is the correct cash balance at May 31?

Balance per bank statement P11,164

Use the following information for the next two questions.

Balance per bank, May 31, 2014 P75,000

Total deposits P55,000

11. What is the cash balance per bank on June 30,2014

Undeposited collections P 60,000

The correct amount that should be reported as cash is

Sales (90% collected in the first year) P750,000

What is the cash balance at December 31 of the first year?

At August 31, 2014, Apex’s correct cash balance is

Data per bank for the month of April 2014 follow:

Santa Clara Co.

Balance per bank statement P126, 420

Balance per book 2,372,000

June data are as follows:

The deposits in transit on June 30, 2014 amount to

What was the total of outstanding checks at the beginning of June?

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