Problem 7 - 24 Candid Company

1 What total amount Should be reported as Cash at the Year end ?

Checking ammount for the second bank

Unrestricted foreign bank account equivalent peses
Petty cash fund in currency
total cash at the year end

Problem 7 -25 Roma Company

1 what total amount should be reported as cash and cash equivalents?

undeposited collection
cash in bank - bdo checking account
cash in bank - bdo fund for payroll
cash in bank - bdo saving deposit
cash in bank - bdo money market instrument, 90 days
cash in bank - bdo value added tax account
total cash and cash equivalents
5,500,000.00
2,000,000.00
20,000.00
7,520,000.00

60,000.00
500,000.00
150,000.00
100,000.00
2,000,000.00
450,000.00
3,260,000.00
 Problem 7 - 26 marjorie company

1 what amount of petty cash fund should should be reported?

coins and currency 22,000.00

check drawn to the order of petty cash custodian 15,000.00
total petty cash fund 37,000.00

Problem 7 - 27 admirable company

1 what amount of petty cash fund should be reported?

coins and currency 2,000.00

check drawn to the order of petty cash custodian 4,000.00
total petty cash fund 6,000.00
Problem 8 -8 Alpha company
ALPHA COMPANY
Bank Reconciliation Statement
For the month ended December 31
1 Prepare bank reconciliation on December 31.

Cash balance per ledger 4,990,000.00

add : Proceeds of bank loan discounted 516,000.00
total 5,506,000.00
less : correction of error - 180,000.00
adjusted cash balance per ledger 5,326,000.00

cash balance per bank 5,500,000.00

add : Undeposited collections on December 31 300,000.00
Correction of error arising from charging 50,000.00
deposit of decemeber 27 omitted from bank statement 150,000.00
total 6,000,000.00
less : Correction of error arising from crediting Omega Company - 130,000.00
Outstanding checks - 544,000.00
adjusted cash balance per bank 5,326,000.00

2 Prepare one journal entry only necessary to adjust the cash account.

Cash 516,000.00
Discount on notes payable 84,000.00
notes payable 600,000.00

Accounts payable 180,000.00

Cash 180,000.00
Problem 8-9 Pathetic comopany
PATHETIC COMPANY
BANK RECONCILIATION STATEMENT
FOR THE MONTH ENDED AUGUST 31
1 Prepare a bank reconciliation on August 31 using the adjusted balance method.

Balance per book

add : Overstatement of check no. 765 (70,000 - 50,000)
Check no. 555 stopped for payment
total
less : Service charge
Nsf checks
adjusted book balance

balance per bank

add : undeposited collection
total
less : oustanding checks
number. 761
number. 762
number. 763
number. 764
number. 765
adjusted bank balance

2 Prepare adjusted entries to correct the cash in bank account on August 31

Aug-31 accounts receivable 30,000.00

loss on cashier 10,000.00
sales
sales discount
Misappropriation on cashier

cash in bank 20,000.00

accounts receivable
Overstatement in check #765

cash in bank 10,000.00

accounts receivable
Payment stopped

accounts receivable 85,000.00

cash in bank
NSF checks

bank service charges 5,000.00

cash in bank
Service change from bank
 NY
TATEMENT
AUGUST 31
ance method.

1,300,000.00
20,000.00
10,000.00
1,330,000.00
- 5,000.00
- 85,000.00
1,240,000.00

1,200,000.00
275,000.00
1,475,000.00

- 55,000.00
- 40,000.00
- 25,000.00
- 65,000.00
- 50,000.00
1,240,000.00

30,000.00
10,000.00

20,000.00

10,000.00

85,000.00

5,000.00
 PROBLEM 11-2 YOUNGISH COMPANY

A. doubtful accounts expense 20,000.00

allowance for doubtful accounts 20,000.00

allowance for D/A end. ( 600,000 * 0.05) 30,000.00

allowance for D/A beg. - 10,000.00
doubtful account expense 20,000.00

B. doubtful accounts expense 40,000.00

allowance for doubtful accounts 40,000.00

allowance for D/A end. 50,000.00

allowance for D/A beg. - 10,000.00
doubtful account expense 40,000.00

C. doubtful accounts expense 38,000.00

allowance for doubtful accounts 38,000.00

sales 2,000,000.00
less : sales return and allowance - 40,000.00
sales discount - 60,000.00
net sales 1,900,000.00
1,900,000.00
x 0.02
38,000.00
 PROBLEM 11-4 TEMPLATE COMPANY

A. Prepare for journal entries pertaining to accouns receivable

1 account Receivable 7,000,000.00

Cash 7,000,000.00
sales on account ( 2/10, n/30 )

2 Cash 2,450,000.00
sales discount 50,000.00
accounts receivable 2,500,000.00
collection from customer within the discount period

3 cash 3,900,000.00
accounts receivable 3,900,000.00
collection from customer beyond the discount period

4 allowance for doubtful accounts 30,000.00

accounts receivable 30,000.00
accounts receivable written of as worthless

5 accounts receivable 10,000.00

allowance for doubtful accounts 10,000.00

cash 10,000.00
accounts receivable 10,000.00
recovery of accounts previosly written of not
inlcuded in the above collections.

6 sales return 70,000.00

accounts receivable 70,000.00
credit memo for sales return

B. prepare the adjusment for doubtful accounts at the year ended if the entity uses the percentage
of accounts receivable method consistently

rate = 40,000 / 1,000,000 = 4%

allowance for doubtful accounts ( 1,500,000 X 4% ) 60,000.00
less: allowance before adjusment - 20,000.00
doubtful account expense 40,000.00

doubtful account expense 40,000.00

allowance for doubful accounts 40,000.00

C. what is the realizable accounts receivable at the year end?

accounts receivable 1,500,000.00
allowance for doubtful accounts 60,000.00
NET REALIZABLE VALUE 1,560,000.00