Cash and Cash Equivalents Problems

1. The statement of financial position of Manny Company shows cash of 330,820. The following
items were found to comprise this total amount:

Checking account in Metrobank (outstanding checks as

of year-end totaled 15,200) 105,200 90,000
Savings account in Far East bank 30,800 30,800
Petty cash fund (including expense receipts for 250) 1,500 1,250
Cash on hand (undeposited sales receipts) 4,200 4,200
Sinking fund cash 35,000 -
Cash in foreign bank (in equivalent pesos) 65,000 65,000
Customers' check on hand Traveler's Check 14,000 14,000
Manager's Check 23,120 23,120 228,370
Short term treasury bills 52,000 -
What is the correct amount of cash? 228,370

2. Kuton Company’s checkbook balance at December 31, 2020 was 180,000. In addition, Kuton
held the following items in its safe on that date:

 Check payable to Kuton dated January 2, 2021 in payment of a sale made in

December 2020, included in December 31 checkbook balance- 65,000.
 Check payable to Kuton deposited December 15, but returned by the bank DAIF-
20,000.
 Check drawn on Kuton’s account, payable to a vendor, dated and recorded on
December 30 but not yet mailed to payee as of December 31, 2020- 15,000.

What is the correct cash balance of the company?

Unadjusted Balance 180,000

Post dated check (65,000)
DAIF check (20,000)
Unreleased check 15,000
3. Green Company’s general ledger showed a balance of 2,205,600 in its cash account on
December 31, 2020. Included in this balance are the following items:

DAIF checks returned by bank 20,000

Savings account 750,000
IOUs 1,200
Postage stamps 600
Bank draft 10,000
Cash on hand 30,000
Cash sinking fund 500,000
Customer's checks dated January 2021 5,400
Travel advances 4,000
Traveler's Checks 8,000

What is the correct balance of cash?

4. Jennifer Incorporated established a petty cash fund of 5,000 for incidental expenses on June
1, 2020. At the end of the month, the count of cash on hand indicated that 670.40 remained in
the fund. A review of the petty cash vouchers disclosed the following expenses had been
incurred during the month:

Office supplies 341.

Transportation 1,321.
Postage 780.
Miscellaneous 837.
Representation 1,000.

What is the amount of cash shortage? Prepare the adjusting entry for the end of the month.
 5. In your cash count of the petty cash fund of Canyon Company as of July 4, 2020, you found
the following composition of its petty cash fund:

Bills and coins counted 2,450.

Approved and signed petty cash vouchers
Dated June 2020 3,300.
Dated July 1-4, 2020 800.
IOU from Joe Santos, an employee 1,400.
A check drawn by Juvy Victoria,
an employee, dated July 15, 2020 2,000.

The petty cash fund has an imprest balance of 10,000. The company’s reporting period ends on June
30.

What is the correct balance of the petty cash fund? How much is the cash shortage or overage?
Prepare the adjusting entry for June 2020