IntAcc Quiz 1 PDF

1) Which of the following items must be added to the cash balance per ledger in preparing a
bank reconciliation which ends with adjusted cash balance?

Note receivable collected by bank in favor of the depositor and credited to the account of the
depositor.
2) What happens when a petty cash is in use?

Expenses paid with petty cash are recorded when the fund is replenished.
3) The cash account of Hanabi Corp. on December 31, 2020 has a balance of P127,600 and it
consists of the following:
The correct cash balance on December 31, 2020 of Hanabi Corp. is P75,930
4) The cash account of Kate Company showed a ledger balance of P396,980 on June 30, 2012.
The bank statement as of that date showed a balance of P415,000. Upon comparing the
statement with the cash records, the following facts were determined:
What is the amount of cash to be shown in the June 30, 2012 statement of financial position?
517390
5) The auditor for NETFLIX INC. examined the petty cash fund immediately after the close of
business December 31, 2020, at the end of the company’s business year. The petty cash
custodian presented the following during the count:
Currency P 1,650
Petty cash vouchers:
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Postage 420
Office supplies expense 900
Transportation expense 340
Computer repairs 800
Advances to office staff 1,500
A check drawn by Netflix Inc., payable to the 7,200

PCF custodian
Postage stamps 300
An employee’s check, returned by bank, 1,000

marked NSF
An envelope containing currency of P1,890 1,890

for a gift for a retiring employee
The general ledger shows an imprest petty cash fund balance of P16,000.
This problem contains two (2) questions:

1. How much is the petty cash shortage or overage? -2190
2. What is the adjusted balance of the Petty cash fund at December 31, 2020? 8850
6) If a petty cash fund is established in the amount of P2,500, and contains P2,000 in cash and
P450 in receipts for disbursements when it is replenished, the journal entry to record
replenishment should include credit to the following accounts. Cash, P500.
7) In preparing its August 31, 2012 bank reconciliation, Christian Company has available the
following information:
Balance per bank statement, August 31, 2012 – P180, 500;
Deposit in transit – P32, 500;
Return of customer’s check for insufficient funds – P6,000;
Outstanding checks – P27,500;
Bank service charges – P1,000.
What is the unadjusted cash balance per books at August 31, 2012? P192,500
8) The Petty Cash Fund of CHARITY Company has an imprest balance of P20,000. The
following items are found in its drawer on December 31, 2021:
Currencies and coins 4,700
Vouchers for expenses during the year:
Office supplies 1,500
Postage stamps 500
Transportation 100 2,100
IOU notes of several employees all dated December 2021 2,500
Unused postage stamps 100
Replenishment check drawn by the Co.,
payable to the order of petty cash custodian 1,500
Check received from customers representing
sales for the month of December 1,700
Check received from Polite, an officer, dated December 30,2021 2,000
Envelope containing contributions from employees
for field trip in Star City 5,000
How much is the correct amount of petty cash fund on Dec. 31, 2021? 8,200
9) The petty cash fund account under the imprest fund system is debited when the fund is
created and when the size of the fund is increased.
10) Following are reconciling items in an enterprise’s bank reconciliation statement:

I. Deposits in transit
II. Company check for P32,500 recorded in the books for P23,500
Ill. Note collected by bank in behalf of the company
IV. Deposit of another company erroneously credited by bank to the company’s account
V. No sufficient fund check charged back by bank
VI. Company deposit for P32,500 recorded in the books for P23,500
Which of these adjustments would be shown as addition to the cash balance per books in order
to arrive at the correct cash balance? III and VI
11) The cash account of Spock Company as of December 31, 2020 was provided to you as
follows:
Current account in PNB P120,000
Undeposited collections 8,000
Customer’s check returned by bank (marked as NSF) 12,000
Check drawn by the Finance Director of Spock Company

dated January 13, 2021 15,000
Check from Enterprise Company dated

December 28, 2020 for goods returned by Spock Company 20,000
Check drawn by Spock Company against its BDO account.

The check was returned by the car dealer since the acquisition of the
delivery equipment did not materialize. This check was
an outstanding check in the BDO account reconciliation 45,000
Petty cash fund, P6,000 in currency, P3,500 in employee

IOU’s and P2,500 supported by approved petty cash
vouchers for expenses all dated prior to December 31, 2020 12,000
232,000
Less: Overdraft in BDO account (Spock Company does not
have any other account in BDO) (30,000)
P202,000
The amount to be reported as cash and cash equivalents in Spock Company’s December 31,
2012 statement of financial position is 169,000
12) The bank statement of ELLEN Corporation for February 2014 showed an ending balance of
P169,700. Deposit in transit on February 28 was P18,200. Outstanding checks as of February
28 were P59,000, including a P5,000 check which the bank had certified on February 25.
During the month of February, the bank charged back NSF checks in the amount of P3,000 of
which P1,000 had been redeposited in February. On February 20, the bank charged the
account of ELLEN Company for P2,000 which should have been charged against the account of
another company; the error was not detected by the bank. During February, the proceeds from
the note collected by the bank for ELLEN Company was P7,500 and bank charge for this
services was P50. The adjusted cash balance on February 28, 2014 is? 135900
13) Ferragamo Company established a petty cash fund of P5,000 on July 1, 2020. At the end of
the month, the count of cash on hand indicated that P675.40 remained in the fund. A review of
the petty cash vouchers disclosed the following expenses had been incurred during the month:
Office supplies – P341.61;
Postage – P780.00;
Representative – P1,000.00;
Transportation – P 1,321.40; and
Miscellaneous – P837.60
The above information indicates that there is a Cash shortage of P44.00.
14) Fino Company banks with ABC Bank and prepares reconciliation of the bank and books
balances on a regular monthly basis. The December 31, 2012 reconciliation shows a balance
per bank of P581,050, balance per books of P627,000, outstanding checks of P84,300, deposits
in transit of P120,000, interest earned on the bank balance of P1,250, and service charges of
P400. Included in the bank statement was a cancelled check which the company had failed to
record. The check was in payment of accounts payable.
What is the amount of the unrecorded check issued by the company in payment of accounts
payable? P11,100
15) Bank reconciliations are normally prepared on a monthly basis to identify adjustments
needed in the depositor’s records and to identify bank errors. Adjustments on the part of the
depositor should be recorded for All items except bank errors, outstanding checks and deposits
in transit.
16) Debit memos refer to items not representing checks paid by the bank which are charged or
debited by the bank to the account of the depositor but not yet recorded by the depositor as
cash disbursements. The following are examples of debit memos, except note collected by bank
in favor of the depositor.
17) If the cash balance shown in the company’s cash records is less than the correct cash
balance and neither the company nor the bank has made any errors, there must be an interest
credited by the bank in the depositor’s account.
18) The balance sheet of Alaska Company as of December 31, 2013 shows Cash of P17,500.
It was found to include the following items:
Postal money orders from customers P 2,400
Notes receivable in the possession of a collection agency 3,200
Receipts for expense advances for the account of credit suppliers 600
Customers’ postdated checks, returned by the bank marked “NSF” 1,800
Traveler’s check 500
Currencies and coins on hand 600
Checks in payment of accounts not yet delivered to payee 6,000
PCF (P160 in currency and P840 in expense receipts) 1,000
What is the correct cash balance? 11,060
19) The Gabbana Company’s ledger showed a balance in its cash account at December 31,
2012 of P682,250, which was determined to consist of
Petty cash fund P 3,600
Cash in Metrobank (reconciliation shows that a check of
P6,000 is outstanding at December 31, 2012) 336,750
Notes receivable in the possession of a collecting agency 25,000
Undeposited receipts, including a customer’s post-dated check
For P10,500 and traveler’s check for P10,000 178,000
Bond sinking fund cash 127,500
IOUs signed by employees 4,950
Paid vouchers not yet recorded 6,450
At what amount should Cash on hand and in bank be reported on Gabbana Company’s
December 31, 2012 statement of financial position? 507850
20) What is the major purpose of an imprest petty cash fund?

To effectively control cash disbursements.
21) Which of the following statements is not true?

The petty cash account is debited when the fund is replenished.
22) Cash equivalents are Short-term and highly liquid investments that are readily convertible
into cash and acquired three months before maturity.
23) The controller for Goofy Company is attempting to determine the amount of cash to be
reported on the December 31, 2020 balance sheet. The following items are included in the
Cash in Bank items of Goofy Company:
BDO special checking used for payroll payments P 500,000
BPI special account used as a bond sinking fund 400,000
MBTC checking account (per ledger), checks of P80,000 are
Outstanding as of December 31, 2020 300,000
DBP, checking account (per bank statement) of P50,000 are
Outstanding as of December 31, 2020 600,000
EWB, includes a P100,000 compensating balance
maintained in relation to a short loan 1,000,000
PNB, includes a P200,000 compensating balance
maintained in relation to a loan arrangement 1,000,000
Checking account in LBP
CA – 000-111111 P600,000
CA – 000 -111112 (250,000) 350,000
EBC, (bank under liquidation) realizable value was
P0.75 of every P1.00 deposit 200,000
ILM, current account (50,000)
1-year treasury note , maturity date January 31, 2021 600,000
1-year treasury note, maturity date on January 31, 2021
(acquired November 28, 2020) 800,000
90-day Central Bank treasury bills 450,000
ABC, US dollar denominated deposit (opened in October 17);
Exchange rate on October 17 was P40; average
(October 17 to December 31) was P50; December 31 was P45 $20,000
The amount to be reported as Cash and Cash Equivalents in Goofy Company’s December 31,
2020 balance sheet is 5,550,000
24) A cash short and over account is Debited when the petty cash fund proves out short.
25) Esprit Company keeps all its cash in checking account, An examination of the company’s
accounting records and bank statement for the month ended December 31, 2012 revealed the
following information:
Cash balance per bank statement – P846, 900;
Cash balance per ledger – P852, 400.
A deposit of P95, 000 placed in bank’s night depository on December 29, 2012 does not appear
on the bank statement. The bank statement shows that on December 26, 2012, the bank
collected a note for Esprit and credited the proceeds of P93, 500 to the company’s account. The
proceeds included P3, 500 interest, all of which Esprit earned during the current accounting
period. Esprit has not yet recorded the collection.
Checks outstanding on December 31, 201 were:

No. 032752 – P15, 000;
No. 032758 – P4, 800;
No. 032767 – P7, 200.
Esprit discovered that check no. 032759 written in December 2012 for P18, 300 in payment of
an account had been recorded in the company’s records as P13, 800. Included with the
December 31, 2012 bank statement was an NSF check for P25, 000 that Esprit had received
from Pitt Company on account on December 20, 2012. Esprit has not yet recorded the returned
check. The bank statement shows a P1, 500 service charge for December.
The journal entry to adjust the cash balance as of December 31, 2012 is
net debit to cash of P62, 500.
26) A compensating balance Which is legally restricted and related to a short-term loan is
classified separately as current asset.
27) Dior Company reported a balance of P43,000 in its cash account at the end of the month.
There were P20,000 deposits in transit and P15,000 of outstanding checks. The bank statement
showed a balance of P50,000, service charges of P6,000 and the proceeds of note collected by
the bank for the company. The note had a face value of P15,000.
How much is the interest on the note collected by the bank? P3,000
28) Unreleased checks (check drawn before the end of reporting period but held for later
delivery to creditors) Shall be restored to the cash balance.
29) Circo Company prepared the following bank reconciliation on March 31:
Book balance P1,405,000
Add: March 31, deposit 750,000
Collection of note 2,500,000
Interest on note 150,000 3,400,000
Total 4,805,000
Less: Circa Company’s deposit to our account 1,100,000
Bank service charge 45,000 1,145,000
Adjusted book balance 3,660,000
Bank balance 5,630,000
Add: Error on Check No. 175 45,000
Total 5,675,000
Less: Preauthorized payments for water bills 205,000
NSF check 220,000
Outstanding check ,650,000 2,075,000
Adjusted bank balance 3,600,000
Check No. 175 was made for the proper amount of P 249,000 in payment of account. However,
it was entered in the cash payments journal as P 294,000. Circo authorized the bank to
automatically pay its water bills as submitted directly to the bank.
What is the adjusted cash in bank on March 31? 3,630,000
30) Petty cash fund is Money kept on hand for making minor disbursements of coin and
currency rather than by writing checks.
31) In preparing a bank reconciliation, interest paid by the bank on the depositor’s account is
added to the book balance.
32) Which is FALSE concerning measurement of cash and cash equivalents?

Cash equivalents should be measured at maturity value, meaning face value plus interest.
33) A bank reconciliation is A schedule that accounts for the difference between an entity’s cash
balance as shown in the bank statement and the cash balance shown in the general ledger.
34) Which of the following is usually considered cash? Checking account.
35) The information that follows is available from the general ledger and the bank statement of
Mickey Company:
● Cash in bank, October 31, P939,000
● Deposit in transit, October 31, 35,000; Outstanding checks, October 31, 68,000
● Credit memo, October 60,000; Debit memo, October 20,000
● Included in the October bank receipts was a deposit of Mickey Company for P25,000,
erroneously recorded by the bank to Mc Key Company’s account
● Included in the October bank disbursements was a check issued by Meekly Company for
P10,000, erroneously recorded by the bank in Mickey Company’s account
● Included in the book receipts was a deposit for P45,000 which was recorded as
P54,000. No correction was made yet by Mickey Company
● Included in the book disbursements was a check issued by Mickey Company for
P42,000 was recorded as P24,000
The correct cash balance as of October 31, 2012 is 952,000
36) DEFYING GRAVITY (DG) Company’s Cash in Bank as of December 31, 2013 included the
following:
The correct amount to be reported as Cash in Bank is? 4440000
37) Which item should be excluded from cash and cash equivalents in the current year-end
statement of financial position? Time deposit which matures in one year.
38) As of December 31, 2020, the petty cash fund of KAPITPA Company with general ledger
balance of P20,000 comprises the following:
Coins and currencies – P3,400;
Petty cash voucher (Gasoline for delivery equipment) – P4,000;
Petty cash voucher (Medical supplies for employees) – P2,720;
IOUs (Advances to employees) – P2,960;
A sheet of paper with names of several employees together with contribution to bereaved
employees attached is a currency of P3,200;
Check – Check drawn to the order of the petty cash custodian – P4,000;
The petty cash custodian admits to have taken money from the fund and forgot to replace it.
How much is the net adjustment to Petty cash fund on December 31, 2020? 12,600
39) Bank statements provide information about all of the following, except errors made by the
company.
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1) Which of the following items must be added to the cash balance per ledger in preparing a

bank reconciliation which ends with adjusted cash balance?

2) What happens when a petty cash is in use?

Petty cash vouchers:

A check drawn by Netflix Inc., payable to the 7,200

Postage stamps 300

An employee’s check, returned by bank, 1,000

An envelope containing currency of P1,890 1,890

This problem contains two (2) questions:

10) Following are reconciling items in an enterprise’s bank reconciliation statement:

Check drawn by the Finance Director of Spock Company

Check from Enterprise Company dated

Check drawn by Spock Company against its BDO account.

Petty cash fund, P6,000 in currency, P3,500 in employee

The above information indicates that there is a Cash shortage of P44.00.

What is the correct cash balance? 11,060

20) What is the major purpose of an imprest petty cash fund?

21) Which of the following statements is not true?

Checks outstanding on December 31, 201 were:

What is the adjusted cash in bank on March 31? 3,630,000

32) Which is FALSE concerning measurement of cash and cash equivalents?

34) Which of the following is usually considered cash? Checking account.

The correct cash balance as of October 31, 2012 is 952,000

The correct amount to be reported as Cash in Bank is? 4440000

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