PARTICULARS GIVEN ANSWER

Current account at Metrobank 500,000 500,000

Overdraft with BPI secured by a Chattel mortgage on the inventories 100,000 (100,000)
Savings account at Metrobank 250,000 250,000
Payroll account 75,000 75,000
Manager’s check 10,000 10,000
Foreign bank account – unrestricted (in Philippine peso) 300,000 300,000
Postage stamps 5,000
Employee’s post dated check 2,000
IOU from controller’s sister 11,000
Credit memo from a vendor for purchase return 7,500
Traveler’s check 11,500 11,500
Money order 13,000 13,000
Petty cash fund (4,000 coins & currencies, 5,000 paid vouchers,
employee’s check for 2,000 dated 01/15/2022, check named to petty cash 10,000 10,000
custodian for 6,000)
Treasury bills, due 03/30/2022 (purchased 12/29/2021) 8,000 8,000
Treasury bills, due 01/31/2022 (purchased 02/01/2021) 9,000
Demand deposit 95,000 95,000
Commercial savings account at PS Bank 30,000 30,000
Commercial checking account at PS Bank 67,000 67,000
Travel advances for executive travel 11,500
Cash fund restricted for the retirement of a long-term debt 45,000
IOU from a company officer 6,700
Certificates of deposit with maturity of 120 days 9,600
Customer’s check received 12/21/2021 dated 01/02/2022 7,500
Compensating balance on Metrobank current account to be maintained at
100,000
all times to ensure future credit availability
Cash collection not yet deposited 85,000 85,000
Check drawn by the Vice President of the Company dated 01/15/2022 6,700
Check drawn by a supplier dated 12/28/2021 for goods returned by the
14,500 14,500
Company
Check dated 05/31/2021 drawn by the Company against BPI in payment of
custom duties. Since the importation did not materialize, the check was
returned by the customs broker. This check was an outstanding check in 150,000 150,000
the reconciliation of BPI.
Foreign bank account – restricted (in Philippine peso) 300,000
Time deposit – 30 days 15,400 15,400
NSF check of customer 9,700
Money market placement (due 06/30/2022) 16,500
Savings deposit in a closed bank 14,200
Pension fund 17,900
Customer’s check outstanding for 18 months 4,800
TOTAL CASH & CASH EQUIVALENT - as of December 31, 2021 1,534,400
This must be netted against the positive balance of BPI account.

This fund is for the current operation of the company therefore it's included.
This check is included as long as there is no info for reimbursement.
Included if not restricted.
Treated as Prepaid Supplies.
Added back to Receivables.
Treated as Receivables.
Treated as Purchase Return.
Same as Manager's check.
If no maturity date (silent), it is included.

For petty cash

Unadjusted cash balance
1. January 5 collection recorded in December (after cut-off)
2. Undelivered check disbursements
3. Post-dated customer check collection
4. NSF customer collection check
5. Cash fund for non-current purpose
Adjusted cash balance - current asset
 105,600.00
- 15,000.00
9,300.00
- 7,800.00
- 1,500.00
- 40,000.00
50,600.00 B
Current account at Bank of the Philippine Islands 6,000,000
Current account at Equitable PCI Bank - 300,000
Payroll account 1,500,000
Foreign bank account – restricted (in USD) ** 60,000
Postage stamps 3,000
Employee’s post dated check 12,000
IOU from a key officer 30,000
Credit memo from a vendor for a purchase return 60,000
Traveler’s check 150,000
Customer’s not-sufficient-funds check 45,000
Money orders 90,000
Petty cash fund (P12,000 in currency and expense 30,000
vouchers for P18,000)
Treasury bills, due 3/31/21 (purchased 12/31/20) 600,000
Treasury bills, due 1/31/21 (purchased 1/1/20) 900,000
Change fund 10,000
Bond sinking fund 1,000,000

TOTAL

Time Deposit SILENT RULE = Noncurrent since time deposits are usually long-term; otherwise
When is Bond Sinking Fund CURRENT = if the corresponding Bond Payable is already CURRENT

OPERATING - income & expenses; current assets & current liabilities

INVESTING - noncurrent assets
FINANCING - noncurrent liabilities & equity
Current
100,000

Payment of Bonds Payable - current portion

Q: is it Operating Activity or Financing Activity?
 CASH & CE NONCURRENT
6,000,000 IF SILENT, no restricted balance
no right of off-set, classified as current liability
1,500,000
3,000,000 Other Assets
Prepaid Expense
Other Receivables
Other Receivables "I owe you"
Debit to Accounts Payable
150,000
Accounts Receivable
90,000
12,000

600,000
Current Investment
10,000
1,000,000 IF SILENT, noncurrent asset

8,362,000 4,000,000

osits are usually long-term; otherwise apply RULE on CASH EQUIVALENTS

ding Bond Payable is already CURRENT

ent liabilities

Noncurrent
1,000,000
BANK
Unadjusted balance 12,300.00
+Deposit in Transit 3,000.00 see Cash on Hand amount
-Outstanding Checks - 850.00
+/- Bank Errors
Adjusted balance 14,450.00 B correct cash balance per audit

BOOK
Unadjusted balance 15,000.00
+CM 150.00
-DM
Balance 15,150.00

Correct cash balance per audit 14,450.00

Unadjusted balance per book 15,150.00
Over (Short) - 700.00 D

Undeposited collection 3,000.00

Shortage 700.00
Accountability for cash on hand 3,700.00 D

Correct cash balance per audit 14,450.00

Undeposited collection - 3,000.00
Cash in Bank (only) 11,450.00 B
 LEFT SIDE = RIGHT SIDE
BANK November 30 Receipt Disbursement
Unadjusted balance per bank statement 535,410 1,245,540 1,091,865
Undeposited collections, Nov. 41,005 (41,005)
Undeposited collections, Dec. 64,400
Outstanding checks, Nov. (138,590) (138,590)
Outstanding checks, Dec. 150,560
Adjusted balances 437,825 1,268,935 1,103,835
1,706,760 1,706,760

BOOK November 30 Receipt Disbursement

Unadjusted balance per book 82,350 1,182,260 1,063,185
Bank service charge, Nov. (3,600) (3,600)
Bank service charge, Dec. 3,000
Note collected, Nov. 359,075 (359,075)
Note collected, Dec. 404,500
NSF check, Dec. 41,250 41,250
Adjusted balances 437,825 1,268,935 1,103,835
1,706,760 1,706,760

Entry to record return of NSF check:

Accounts Receivable 41,250
Cash In Bank 41,250

Entry to record redeposit of NSF check:

Cash In Bank 41,250
Accounts Receivable 41,250

IF SILENT, NO ENTRY?
RIGHT SIDE
December 31
689,085

64,400

(150,560)
602,925

December 31
201,425

(3,000)

404,500

602,925
 LEFT SIDE = RIGHT SIDE
BANK November 30 Receipt Disbursement December 31
Unadjusted balance per bank statement 18,500 145,000 137,000 26,500
Deposit in transit, Nov. 12,500 (12,500)
Deposit in transit, Dec. 20,000 20,000
Outstanding checks, Nov. (16,250) (16,250)
Outstanding checks, Dec. 12,500 (12,500)
Bank error, Dec. (3,750) 3,750
Adjusted balances 14,750 152,500 129,500 37,750
167,250 167,250

BOOK November 30 Receipt Disbursement December 31

Unadjusted balance per book 16,250 150,000 128,750 37,500
Bank service charge, Nov. (1,500) (1,500)
Bank service charge, Dec. 2,250 (2,250)
Note collected, Nov.
Note collected, Dec.
Book error, Dec. 2,500 2,500
Adjusted balances 14,750 152,500 129,500 37,750
167,250 167,250

Bank service charges recorded in December - per books 3,250 Company checks paid - per bank
November bank service charge recorded in December 1,500 November outstanding checks recorded in Dec
Unrecorded bank service charge (2,250) December outstanding checks
December bank service charge - per bank statement 2,500 Company checks issued - per book

Bank service charges recorded in December - per books 2,500 Company checks paid - per bank
November bank service charge recorded in December (1,500) November outstanding checks recorded in Dec
Recorded bank service charge for December 1,000 Actual checks paid for December
December bank service charge - per bank statement 3,250 December outstanding checks
Unrecorded bank service charge (2,250) Company checks issued - per book
Add: Bank service charges recorded in Decemb
Total unadjusted book disbursements in Dece
 130,000
ng checks recorded in December (16,250)
12,500
ed - per book 126,250

130,000
ng checks recorded in December (16,250)
r December 113,750
12,500
ed - per book 126,250
arges recorded in December - per books 2,500
ok disbursements in December 128,750