Ayame S.

Malinao BSA 1_9 March 15, 2022

ACCTG 102 Assignment:

PROBLEM NO. 1
In connection with your audit of USJR Corporation for the year ended December 31,
2018, you gathered the following:
1. Current account of Metrobank P 2,000,000
2. Current account at BPI (100,000)
3. Payroll account 500,000
4. Foreign bank account- restricted (in equivalent pesos) 1,000,000
5. Postage stamps 1,000
6. Employee’s postdated check 4,000
7. IOU from accountant’s sister 10,000
8. Credit memo from a vendor for a purchase return 20,000
9. Traveler’s check 50,000
10. Not-sufficient-funds check 15,000
11. Money order 30,000
12. Petty cash fund (P4,000 in currency and expense receipts for P6,000) 10,000
13. Treasury bills, due 3/31/19 (purchased 12/31/18) 200,000
14. Treasury bills, due 1/31/19 (purchased 1/1/18) 300,000
Question:
Based on the above information and the result of your audit, compute for the cash and
cash equivalent that would be reported on December 31, 2018 balance sheet.
a. P2,784,000
b. P3,084,000
c. P2,790,000
d. P2,704,000

Answer:
Cash and Cash equivalent that will be reported on December 31, 2018 balance sheet
Current account at Metrobank P2,000,000
Payroll account 500,000
Traveler’s check 50,000
Money order 30,000
Petty cash fund 4,000
Treasury bill, due 3/31/19 (purchased 12/31/18) 200,000
P2,784,000
PROBLEM NO. 2

You noted the following composition of Carbon Company’s “cash account” as of

December 31, 2018 in connection with your audit:

Demand deposit account P2,000,000

Time deposit- 30 days 1,000,000
NSF check of customer 40,000
Money market placement (due June 30, 2019) 1,500,000
Savings deposit in a closed bank 100,000
IOU from employee 20,000
Pension fund 3,000,000
Petty cash fund 10,000
Customer’s check dated January 1, 2019 50,000
Customer’s check outstanding for 18 months 40,000

Total P7,760,000

Additional information follows:

a.) Check of P200,000 in payment of accounts payable was recorded on December

31, 2018 but mailed to suppliers on January 5, 2019.
b.) Check of P100,000 dated January 15, 2019 in payment of accounts payable was
recorded and mailed on December 31, 2018.
c.) The company uses the calendar year. The cash receipts journal was held open
until January 15, 2019, during which time P400,000 was collected and recorded
on December 31, 2018.

Question:
The cash and cash equivalents to be shown on the December 31, 2018 balance sheet
is
a. P3,310,000
b. P1,910,000
c. P2,910,000
d. P4,410,000

Answer:
Cash and Cash equivalents to be recorded on the December 31, 2018 balance sheet

Demand deposit account P2,000,000

Time deposit- 30 days 1,000,000
Savings deposit in a closed bank 100,000
Petty cash fund 10,000
Unreleased check 200,000
P3,310,000