I.

Determine if the following business transactions are part of Operating, Investing or

Financing Activities. (2 points each)

_______________1. Cash Receipts form sale of intangible assets

_______________2. Cash Receipt from commissions and fees.
_______________3. Cash payments to and on behalf of the employees
_______________4. Cash payments for self – construction of a building
_______________5. Cash proceeds from issuing short or long – term borrowings
_______________6. Cash receipt from insurance policy benefits
_______________7. Cash payments to acquire investments in equity or debt instruments
_______________8. Cash flows from non – trade creditors
_______________9. Cash payments to suppliers of goods and service
_______________10. Cash payment to shareholders to acquire or redeem the enterprise’s shares
_______________11. Payments of cash dividends to shareholders of records
_______________12. Cash receipt from sale of a fully – depreciated equipment
_______________13. Cash receipts from trade creditors
_______________14. Cash repayments of amounts borrowed
_______________15. Cash receipts from the sale of goods
_______________16. Cash advances made by a financial institution
_______________17. Cash proceeds from issuing common and preferred shares
_______________18. Cash receipts from rendering of services
_______________19. Cash payment for acquisition of a land in order to construct a building
_______________20. Cash receipts from constructs held for dealing or trading purposes
_______________21. Cash proceeds from maturity of short – term investments
_______________22. Cash receive from disposal of investment in associates
_______________23. Payments for acquisition of treasury shares
_______________24. Cash payment of income taxes
_______________25. Cash payments from contracts held from dealing or trading purposes

II. Computation. Show your solutions in good form.

1. The following information is available from Avocado Company’s accounting records for the year
Ended December 31 2016:
 Cash received from P870,000
 Cash Received for rent 10,000
 Cash paid to suppliers and employees 510,000
 Taxes paid 110,000
 Gain on sale of equipment 300,000

What is the net cash flow from operating activities for 2016?

2. Watermelon, Inc. has provided the following 2016 account balances for the preparation of the
annual statement of cash flows:
Account January 1 December 31
Account Receivable P115,000 P145,000
 Allowance for bad debts 4,000 5,000
Prepaid Rent 62,000 41,000
Account Payable 97,000 112,000
Salaries Payable 56,000 87,000
Inventories 45,000 72,000
Watermelon’s profit for 2016 is P750,000. What is the 2016 net cash from operations?

3. Strawberry Company’s transactions for the year ended December 31, 2016 included the
Following:
 Purchased real estate for P750,000 cash which was borrowed from a bank
 Sold Investment securities for P300,000
 Paid dividends of P200,000
 Issued 500 ordinary shares for P650,000 cash
 Purchased machinery and equipment for P825,000 cash
 Paid P250,000 toward a bank loan.

How much should be reported as net cash used in investing activities?

How much should be reported as net cash used in financing activities?

4. The following was taken from the 2016 financial statements of mango Company:
Accounts Payable January 1: P815,000 December 31: P967,000
Purchases, all on account: P3,408,000

How much is the amount of cash payments made to suppliers during 2016?

5. The profit or loss accounts of Star Apple Company for the year 2016 included the following:
Revenues P8,000,000
Operating Expenses P7,200,000

The operating expenses included depreciation of P150,000 and intangible asset amortization of
P20,000.

Changes in current asset and current liability accounts during 2016 were as follows:
 Accounts Receivable P60,000 increase
 Merchandise inventory P50,000 increase
 Accounts Payable P90,000 decrease
 Salaries and wages payable P30,000 increase
 Interest payable P5,000 increase
 Income tax payable P25,000 decrease

How much should be reported as cash generated from operating activities during 2016?
 2.) Net cash provided from Financing __________
Amor Studio provided the following statements: activities
Statement of Financial Position 3.) Net cash provided from Investing __________
2017 2016 activities
Cash P100,000 ? 4.) Net increase/decrease in cash __________
Accounts Receivables 250,000 220,000 5.) Cash balance, beg __________
Building 300,000 150,000 Problem 3
Notes Receivable – 2years 100,000 50,000 ABM 12-1P provided the following information:
Collectible Increase in Accounts receivables P200,000
Notes receivables 100,000 50,000 Decrease in Accounts payables 150,000
Trading Securities 20,000 25,000 Increase in Interest payables 14,000
Land 220,000 230,000 Increase in Prepaid insurance 1,000
Prepaid Insurance 5,000 4,500 Decrease in interest receivable 8,000
Accrued Income 4,500 5,000 Decrease in Unearned rent income 50,000
Inventory 180,000 350,000 Decrease in Inventory 50,000
Equipment 390,000 350,000 Gross profit rate 30%
Total Assets 1,669,500 1,554,500 Cost of sale 350,000
Accounts Payables 300,000 350,000 Interest expense 16,000
Mortgage Payable-payable 50,000 40,000 Insurance expense 19,000
Within 1 yr Interest income 15,000
Unearned Income 150,000 120,000 Rent income 70,000
Bonds Payable 400,000 380,000 Salaries expense P40,000
Salaries payable 100,000 120,000 Requirements:
Loan payable-long term 169,500 194,500 1.) Collections from customers __________________
Total Liabilities 1,169,500 1,204,500 2.) Payments for suppliers __________________
Amor Capital 500,000 350,000 3.) Payments for interest __________________
Total Equity 500,000 350,000 Expense
Total Liabilities and Equity P1,669,500 P1,554,500 4.) Payment for insurance __________________
Statement of Comprehensive Income 5.) Collections from Interest __________________
2017 Income
Sales P500,000 6.) Collection from Rent income __________________
Cost of Sales (250,000) 7.) Payments for expenses __________________
Gross Profit 250,000 8.) Collections from other __________________
Selling expenses (30% from Bad Debts) (50,500) Income
Administrative Expenses (20% Problem 4
From Depreciation) (60,200) Ther records of SAM company showed the ff info for the year-
Income from Operation 139,300 ended December 31, 2018:
Interest expense (52,0000) Sale revenue (60% cash sales) P8,000,000
Gain on Sale of PPE 20,000 Collections from customers 1,000,000
Interest income 15,000 Rental income (80% cash collected) 500,000
Net Income before tax P122,300 Employee’s salaries for the year (90% 3,000,000
Income tax expense (36,690) paid)
Net income after tax P85,610 Payment for suppliers 800,000
Other operating expenses (10% accrued) 700,000
Requirements: The net cash inflow/(outflow) from: Requirements:
1.) Operating activities Individual Method 1.) Cash inflow fir operating activities
PROBLEM 2 2.) Cash outflow for operating activities
Araceli Enterprise provide the following information for the year 3.) Net cash provided from the operation
ended December 31, 2018: Problem 6
a. Payment for the purchase of land P100,000 Selected information from Dinkel Company’s 2011 Records
b. Cash withdrawal made by Araceli 240,000 a. Proceeds from issuance of stock P 400,000
c. Payment for delivery expense 15,000 b. Proceeds from issuance of bonds 1,200,000
d. Payment for interest expense 2,200 c. Cash dividends on stock paid 160,000
e. Payment for freight for inventory sold- FCB 10,000 d. Cash received on dividends 100,000
Shipping point e. Cash payment from purchasing bonds 120,000
f. Cash received from customers 120,000 f. Cash payment from purchasing stocks 50,000
g. Cash paid to suppliers 90,000 g. Payments to suppliers 20,000
h. Cash received from sale of inventory 150,000 h. Interest paid 10,000
i. Additional cash investment from Arceli 139,000 i. Interest received 12,000
Cash balance, end j. Proceeds from sale of equipment 52,000
Requirements:
1.) Net cash provided from Operating __________ 1. Net cash provided (used) by finacing activities of the year
Activities
 2. Net cash provided (used) by operating activities of the 3. Net cash provided (used) by investing activities of the year
year

PART I. IDENTIFYING PARTS OF STATEMENT OF CASH FLOWS. Write A if it is an operation activity, B if it is an activity,
C if it is a financing activity or X if it does not pertain to any.

1. Cash receipts from sale of intangible assets

2. Cash Payments to and behalf of the employees
3. Cash payment for self-construction of a building
4. Cash receipt from insurance policy benefits
5. Cash flows from non-trade creditors
6. Cash payments to shareholders to acquire or redeem the enterprise’s shares
7. Payment of the cash dividends to shareholders of record
8. Cash receipts from sale of fully-depreciated equipment
9. Cash receipts from trade creditors.
10. Cash advance made by financial institutions.
11. Cash payment from issuing common and preferred shares.
12. Cash payment for acquisition of the land to construct a building
13. Cash receipts from contracts held for dealing or trading purposes.
14. Cash payment of income taxes.
15. Cash received from disposal of investment in associates.

PART II. PROBLEM SOLVING. Read and analyse the following information. Select the best answer from the choices
provided. All items are three points each.

Problem 1
Lodi Merchandising provided the following comparative selected accounts of the statement of financial position:
12/31/18 13/31/17 12/31/18 12/31/17
Cash & cash Equivalents 500,000 300,000 Prepaid Insurance 70,000 80,000
Accounts Receivable 1,000,000 750,000 Accounts Payable 70,000 40,000
Inventory 500,000 650,000 Salaries payable 80,000 20,000
Prepaid Rent 280,000 120,000

The company Sales of 3,000,000 and purchased of 1,200,000 worth of inventory. The company had expenses of
20,000 for rent, 80,000 for salaries and 40,000 for insurance. Net cash flow from financing activities is 56% of the
cash flow from operations.

1. Cash collected from customers

a. 2,250,000 b. 2,750,000 c. 3,650,000 d. 3,250,000
2. Cash paid to suppliers
a. 1,240,000 b. 1,160,000 c. 1,230,000 d. 1,170,000
3. Cash paid for rent
a.20,000 b. 30,000 c. 50,000 d. 40,000
4. Cash paid for Insurance
a. 50,000 b. 190,000 c. 30,000 d. 110,000
5. cash paid for salaries
a. 20,000 b. 180,000 c. 140,000 d. 40,000

Problem 2
The following comparative current accounts of cutie-ABM Merchandising for the year ended December 31,2018
have been provided:

Beginning Ending
Cash and Cash equivalents P 550,000 P 900,000
Accounts Receivable 200,000 100,000
 Inventory 100,000 200,000
Accounts payable 300,000 400,000

The net Income for the year amounted to P1,500,000 after doubtful accounts expense, depreciation expense,
amortization, salaries and utilities expense amounting to P10,000 each.

9. How much are the non-cash expenses added back to the net income?
a. 10,000 b. 20,000 c. 30,000 d. 40,000
10. How much is the net increase or decrease in making capital included in the computation of cash flows from
operations?
a.0 b. 350,000 c. (350,000) d. 100,000
11. Using the indirect method, how much is the net cash flow from operations?
a. 1,760,000 b.1,740,000 c. 1,630,000 d. None of the above
Problem 3
The cash account shows a balance of P450,000 before reconciliation. The bank statement does not include a deposit
of P 23,000 made on the last day of the month. The bank statement show a collection by the bank of P 9,400 and a
customer’s check of P 3,200 was returned because it was NSF. A customer’s check for P 4,500 was recorded on the
books at P 5,400, and a check written for P 790 was recorded as P 970.

12. The adjusted balance in cas account was

a. 455,120 b. 455,480 c. 457,280 d.478,480
13. The unadjusted bank balance was
a. 432,120 b. 432,480 c. 434,280 d. 455,480
Problem 4
On December 31, 2018, Kath Company’s books reflected a balance of P 32,560. In reconciling the bank and book
amountsn It was found out that the company deposited P 11,825 but not yet credited by the bank and issued checks
for payment of expenses, P 9,885 which was not yet cleared by the bank.

Note receivable of P 250,000 and interest income of 2,500 were collected by the bank but not recorded in the books.
The bank also returned Customer’s NSF check amounting to P 42,040 and gave a credit memo of P 24,070.

Cash sales of P 64,025 were recorded in the books buut the amount was reported missing and a deposit of Kath was
erroneously recorded by the bank as P 2,300 instead of P 3,500.

14. How much is the adjusted book balance?

a. 190,040 b. 203,085 c. 178,995 d. None of the above
15. How much is the unadjusted bank balance?
a. 199,925 b. 205,005 c. 212,950 d. none of the above

Problem 5
The company had a bank balance of P 50,499 before the following reconciling items were given: outstanding checks
of P20,789, debit memo of P 2,300, deposit trasit of P 4,500, NSF check of P 6,789 and a credit memo of P 19,839.

16. How much is the adjusted bank balance?

a. 68,909 b. 66,788 c. 38,921 d. 34,120
17. How much is the unadjusted book balance?
 Part I. Identify the following if it is under operating, B. Kaya Nila Yan Corp. reported the profit or Loss for 2016
investing or financing Activity, then if it is results to an as follows:
Inflow or Outflow of cash.
Sales P1,000,000
1. Cash receipts from sale of intangible assets Less: Cost of sales 580,000
2. Cash payments to employees Gross profit P420,000
3. Cash payment for self-construction of building.
4. Cash receipt from insurance policy benefits
5.Cash flow from non-trade creditors
6.Cash Payment to treasury shares
7.Payment of share dividends.
8. Cash receipts from sale of machine and equipment
9. Cash receipts from trade creditors
10. Cash advances from financial institutions
11. Cash from issuing preferred shares. Less: Operating expenses
12. Cash payments for acquisitions of land Depreciation expenses P80,000
13. Cash from contracts held for trading purposes Salaries Expense 120,000 200,000
14. Cash Payment of income taxes. Net Income P220,000
15. cash from dividends received
The following are the changes in working capital:
Part II. Problem Solving
Increase in Cash P37,000
A. The following are the balances of some accounts: Decrease in Accounts Receivable 50,000
Increase in inventories 89 ,000
12/31/18 12/31/17 Decrease in Accounts payable 46,000
Accounts Receivable P 1,000,000 P 750,000 Increase in Salaries payable 24,000
Inventory 500,000 650,000
Prepaid Rent 280,000 120,000 9.) How much is/are the non-cash expenses?
Prepaid Insurance 70,000 80,000 10.) How much is the net increase/Decrease in the
Accounts payable 70,000 40,000 working capital?
Salaries Payable 80,000 20, 000 11.) How much is the net cash flow from operations?

The Company had sales of P3,000,000 and purchased C. These are the selected information from Papasa Sila
P1,200,000 worth of inventory. The expenses are Company:
p20,000 for rent, P80,000 for salaries and P40,000 for
insurance. Cash has a beginning balance of P300,000 and Proceeds form issuance of stocks P400,000
ending balance of P500,000. Net cash flow from financing Proceeds of cash from trade creditors 1200,000
activities is 56% of the cash flow from operations. Cash paid for dividends 160,000
Cash received on dividends 100,000
1.) Cash collected from customers Cash paid for long-term investments 120,000
2.) Cash paid to suppliers Cash paid for purchasing patent 50,000
3.) Cash paid for rent Payment to Suppliers 20,000
4.) Cash paid for insurance Interest paid 10,000
5.) Cash paid for salaries Interest received 12,000
6.) Cash flow from operating activities Proceeds from sale of equipment 52,000
7.) Cash flow from investing activities
8.) Cash flow from financing activities 12.) Net cash from Financing Activities
13.) Net cash from Operating Activities
14.) Net cash from Investing Activities
15.) Net Increase in Cash.
ANSWERS:
I. II. III.
1._______ 1. _______ 1. _______ 16. _______
2._______ 2. _______ 2. _______ 17. _______
3._______ 3. _______ 3. _______ 18. _______
4._______ 4. _______ 4. _______ 19. _______
5._______ 5. _______ 5. _______ 20. _______
6._______ 6. _______ 6. _______ 21. _______
7._______ 7. _______ 7. _______ 22. _______
8._______ 8. _______ 8. _______ 23. _______
9._______ 9. _______ 9. _______ 24. _______
10._______ 10. ______ 10. _______ 25. _______
11._______ 11. ______ 11. _______
12._______ 12. ______ 12. _______
13._______ 13. ______ 13. _______
14._______ 14. ______ 14. _______
15._______ 15. ______ 15. _______

QUESTIONAIRE:

I. The following are the different financial statements: (1) Statement of Comprehensive Income, (2) Statement of
Financial Position, (3) Statement of Changes in Owner’s Equity, (4) cash Flow Statement (Direct Method) and (5) Cash
Flow Statement (Indirect Method). Answer:

a. If all 5 contain the account

b. If 4 contain the account
c. If 3 contain the account
d. If 2 contain the account
e. If 1 contain the account
f. None of the above

1. Cash, end 9. Accounts Receivable, end

2. Merchandise Inventory, Beginning 10. Collection from Customers
3. Merchandise Inventory, end 11. Cash, Beginning
4. Net Income 12. Capital, Beginning
5. Sales 13. Capital, End
6. Short-Term Investment 14. Change in Working Capital including Cash
7. Depreciation Expense 15. Cost of Goods Sold
8. Gain on Sale of Equipment

II. Identify what kind of cash flow activity are the following.: Answer:

a. Operating C. Investing
b. Financing d. None of the above

1. Sales on Account 13. Received Notes receivable-2 years

2. Cash purchase of Inventory 14. Cash Withdrawal of Owner for payment of Company’s
3. Cash Investment of owner Expenses.
4. Dividends was paid through issuance of checks 15. Expiration of Supplies
5. Cash Sales
6. Land was used for the construction of a building
7. cash payment of operating expenses
8. Bank Loan
9. Depreciation of Equipment
10. Collection of Accounts Receivables
11. cash Advances of Salaries
12. Payment of Interest Expense

University of the East, Manila

Senior High School Department
Accountancy, Bussiness, and Management 2

PART III. PROBLEM SOLVING: Read carefully and write the letter of the correct answer. Use CAPITAL LETTERS
ONLY. Kindly show your solutions in good form/\.
(NO SOLUTION, NO POINTS)

PROBLEM 1. (2pts each)

ABM 12-8- Company provided the following comparative selected accounts of the statement of financial
position:
12/31/2018 12/31/2017
Accounts Receivable P 1,200,000 P 800,000
Merchandise Inventory 1,200,000 650,000
Prepaid Rent 20,000 40,000
Accounts Payable 700,000 550,000
Salaries payable 80,000 60,000

The statement of comprehensive income showed the following information:

Sales P 9,000,000
Purchases 4,500,000
Salaries 1,200,000
Rent 90,000

During the period, 60% of the sales were made on account.

1. Cash collected from customers

A. P5,400,000 B. P6,200,000 C. P5,000,000 D. P6,400,000
2. Cash paid to Suppliers
A. P3,000,000 B. P4,350,000 C. P4,500,000 D. P5,050,000
3. Cash Paid for salaries
A. P1,200,000 B. P1,180,000 C. P1,260,000 D. P140,000
4. Cash paid for rent
A. P90,000 B. P110,000 C. P50,000 D. P 70,000
5. How much is the total inflows of cash?
A. P5,400,000 B. 3,600,000 C. P9,000,000 D. None of the above
6. How much is the total outflows of cash?
A. P4,350,000 B. P5,400,000 C. P5,600,000 D. none of the above
7. How much is the Net cash flow provided from operations?
A. P3,200,000 B. P3,500,000 C. P3,000,000 D. P3,100,000
PROBLEM 2. (4 each points)
The following comparative current accounts of LIAN Merchandising for the year ended Dec 31, 2018 have been
provided:
January 1 December 31
Cash and Cash Equivalents P 700,000 850,000
Account Receivable 350,000 480,000
Inventory 120,000 100,000
Account Payable 180,000 100,000

The Net income for the year amounted to P900,000 after considering the following items:
Doubtful Accounts P 5,000
Depreciation 80,000
Amortization 10,000

8. Using the indirect method, how much is the net cash provided by the operations?
a. P1,205,000 b. P595,000 c. 780,000 D. None of the above

PROBLEM 3. (2pts each)

Megan Merchandising owned and managed by Megan, presented the following information for the year
Ended December 31,2018:

Purchased of Bonds P3,200,000

Collection from customers 4,000,000
Proceeds from sale of machinery 500,000
Interest received 150,000
Megan, Drawing 400,000
Additional investments from Megan to Megan Merchandising 100,000
Payment to suppliers 1,500,000
Income taxes paid 200,000
Borrowing from the Bank 2,500,000
Acquisition of Equipment 400,000

Assume that the beginning balance of cash is P1,500,000.

9. Net cash flow provided from operations

A. P2,550,000 B. P2,450,000 C. P2,350,000 D. None of the above
10. Net cash flow used by investing activities
A. P3,000,000 B. P3,300,000 C. P3,500,000 D. None of the above
11. Net cash flow provided by financing activities
A. P2,000,000 B. P2,200,00 C. P2,300,000 D. None of the above
12. How much is the net changed in Cash?
A. P1,550,000 B. 1,450,000 C. P1,350,000 D. None of the above
13. How much is the cash balance at the end?
 A. P3,150,000 B. P3,100,000 C. P3,050,000 D. None of the above

PROBLEM 4. (2pts each)

The records of SAM Merchandising showed the following information for the year ended December 31,
2018:

Sales Revenue (60% cash sales) P 8,000,000

Collections from customers 1,000,000
Rental Income (80% cash collected) 500,000
Employees salaries for the year (90% paid) 3,000,000
Payment to Suppliers 800,000
Other Operating expenses (10% accrued) 700,000

14. How much is the cash inflows from operating activities?

a. P6,300,000 b. P6,200,000 c. P6,100,000 d. None of the above
15. How much is the cash outflows from operating activities?
a. P4,250,000 b. P4,140,000 c. P4,130,000 d. None of the above
16. How much is the Net Cash provided from operations?
a. P2,050,000 b. P2,055,000 c, 2,060,000 d . None of the above

PART II. COMPLETION TEST: Read and analyse carefully the given formulas and
Fill in the missing elements. (1pt each)

17. AR, beg XX 18. AP, beg XX

??? ?? ??? ??
Cash Collected (XX) Cash paid (XX)
AR, end XX AP, end XX

19. Interest payable, beg XX 20. Prep. Rent, beg XX

??? ?? ??? ??
Interest paid (XX) Cash paid XX
Interest payable, end XX Prep Rent, end XX

21. Inv, beg XX 22. Salaries payable, beg XX

Purchases on acct. XX Salaries exp XX
??? ?? ??? ??
Inv, end XX Salaries payable, end XX

PART III. TRUE/FALSE: Read each statement carefully. Write TRUE if the statement is true, Otherwise, Write
FALSE. (2pts each)

23. The term cash in the SCF refers to cash and cash equivalents.
 24. Financing activities are the acquisition and disposal of long-term assets.
25. Cash payments for bank loans are reported under operating activities.

BANK RECONCILIATION
PROBLEM 1
“SANA ALL” Company shows a cash account balance of P450,000 before reconciliation. The bank statement
does not include a deposit of P23,000 made on the last day of the month. The bank statement shows a
collection by the bank of P9,000 and a customer’s check of P3,200 was returned because it was NSF. A
customer’s check was recorded on the books at P5,400 instead of 4,140 and a
Check written for P790 was recorded as P970.

The correct balance in the cash account was

a. 455,120
b. 455,480
c. 457,280
d. 478,480

PROBLEM 2
Mimiyuuuhhhh Company showed a cash account balance of P4,500,000 at the month-end

The bank statement did not include a deposit of P230,000 made on the last day of the month. Also
Showed a collection by the bank of P94,000 for the depositor and a customer check for P32,000 returned
because it was DAIF.

A customer check for P45,000 was recorded by the depositor as P54,000 and a check written for P79,000
was recorded as P97,000.

What amount should be reported as Cash in bank?

a. 4,765,000
b. 4,571,000
c. 4,819,000
d. 4,801,000

PROBLEM 3
“Share this Lucky Banana To Pass” Company provided the following information at year-end:
Balance per book 6,776,000
Balance per bank statement 6,532,000
Deposit in transit 1,234,000
Outstanding Checks 987,000
Currency and coin on hand 950,000
 Petty Cash fund 40,000
Bank service charge not yet recorded in books 6,000
Bong sinking fund 1,000,000
Error in recording a check in the book. The correct amount as paid by the bank 9,000
is P89,000 instead of 98,000 as recorded in the book, or a difference of

What is the adjusted cash in bank as of year-end?

a. 6,779,000
b. 6,776,000
c. 6,532,000
d. 7,769,000
What total amount of cash should be reported as current asset at year-end?
a. 9,309,000
b. 6,779,000
c. 7,769,000
d. 8,769,000

PROBLEM 4
“Walang Forever sa Omegle” Company provided the following information:

Balance per bank statement, July 31 1,240,000

Balance per ledger, July 31 750,000
Deposit of July 30 not recorded by the bank 280,000
Debit memo - service charges 10,000
Credit memo – Collection of note by the bank from the Company 300,000
Outstanding Checks 550,000

An analysis of the canceled checks returned with the bank statement revealed the following:
a. Check for the purchase of supplies was drawn for P 60,000 but was recorded as P 90,000
b. The manager wrote a check for traveling expenses of P 100,000 while out of town. The
check was not recorded.

What amount of cash in bank should be reported on July 31?

a. 970,000
b. 270,000
c. 550,000
d. 610,000

Problem 5
“Yorme beke nemen” Company(Yorme)kept all cash in checking account. An examination of the
accounting records and bank statement of the month of December revealed a bank statement
balance of P 8,469,000 and a book balance of P 8,524,000.

A deposit of P 950,000 placed in the bank’s night depository on December 29 does not appear on
the bank statement.
 Checks outstanding on December 31 amount to P 270,000.
The bank statement showed that on December 25 the bank collected a note for the Yorme and
credited the proceeds of P935,000 to the entity’s account which included P 35,000 interest
income.

Yorme discovered that a check written in December fo P183,000 in payment of an account had
been recorded as P 138,000.

Included with the December 31 bank statement was an NSF check for P 250,000 that Yorme
company had received from a customer on December 20. The bank statement showed a P 15,000
service charge for December.

What is the adjusted cash in bank on December 31?

a. 9,149,000
b. 9,239,000
c. 9,194,000
d. 9,214,000

PROBLEM 1 b. 1,010,000
In preparing the bank reconciliation for the month of august, c. 775,000
Adrian Company provided the following information: d. 945,000
Balance per bank statement 1,805,000 PROBLEM 3
Deposit in transit 325, 000
Return of customer’s check for insufficient fund 60,000 NINO Company provided the following date for the purpose of
Outstanding Checks 275,000 reconciling the cash balance per bank statement on December
Bank Service charge for august 10,000 31,2016:

1. What is the adjusted cash in bank? Balance per bank statement 2,000,000
a. 1,855,000 Outstanding checks 400,000
b. 1,795,000 Deposit in transit 200,000
c. 1,785,000 December NSF check (of which P50,000 150,000
d. 1,755,000 Redeposit and recorded)
Erroneous credit to Nino’s account representing 300,000
PROBLEM 2 Proceeds of loan granted to another company
ARA Company provided the following data for the month of Proceeds of note collected by the bank for the 750,000
December: Company net of service charge of P20,000
Balance per book 1,000,000
Bank Service Charge 3,000 4. What amount should be reported as cash in bank on
Outstanding checks 235,000 December 31,2016?
Deposit in transit 300,000 a.1,500,000
Customer note collected by bank 375,000 b.1400,000
Interest on customer note 15,000 c.1,800,000
Customer check returned DAIF 62,000 d.1,450,000
Depositor’s payment of note payable charge to
Account 250,000

2. What is the adjusted cash in bank? 5. What is the unadjusted cash bank per ledger?
a. 1,575,000 a. 850,000
b. 1,065,000 b. 1,500,000
c. 1,075, 000 c. 1,800,000
d. 1,325,000 d. 2,000,000
3. What is the unadjusted cash in the bank per bank
statement? PROBLEM 4
a. 2,310,000
Simangan Company provided the bank statement for the Return of customer’s check for 60,000
month of December which included the following information: insufficient fund Outstanding check
Bank service charge for August P 10,000
Ending Balance, December 31 2,800,000
Bank service charge for December 12,000 What is the adjusted cash in bank?
Interest paid by bank to Simangan Company 10,000 Problem 2
Mindoro Company provided the following data for the month of
December:
In comparing the bank statement to its own cash records, the Balance per book P1,000,000
entity found the following: Bank enservice charge 3,000
Deposits made but not yet recorded by the bank 350,000 Outstanding checks 235,000
Check written & mailed but not yet recorded by Bank 650,000 Deposit in Transit 300,000
Customer note collected by the bank 375,000
In addition, the entity discovered that it had drawn and Interest in customer notes 15,000
erroneously recorded a check for P46,000 that should have been Customer check returned NSF 62,000
Depositor’s payment to note payable 250,000
recorded for 64,000.
charged to account
6. What is the adjusted cash in bank to be reported on Dec 31?
a. 2,500,000 Requirements:
b. 2,520,000 1.) Adjusted cash in bank per book __________
c. 2,540,000 2.) Unadjusted cash in bank per bank __________
d. 2,800,000 Statement
7. What is the cash balance per leger of December 31? Problem 3
a. 2,500,000 Core Company provided the following data for bank reconciliation for
b. 2,520,000 December 31, 2016:
c. 2,540,000 Balance per book P 850,000
Balance per bank 2,000,000
d. 2,800,000
Outstanding checks, including
certified checks of P100,000 500,000
PROBLEM 5 Deposit in transit 200,000
1M Company provided the following information for the December NSF checks (of which
month of December: P50,000 had been redeposit and
Balance per Bank statement 2,800,00 cleared on December 27) 150,000
Deposit in Transit 195,000 Erroneous credit to Core’s account,
Check book printing charge 5,000 representing proceeds of loan granted
Time deposit – 3months 25,000 to another company 300,000
Proceeds of notes collected by bank for
Error made by 1M recording a check of issued in Dec 35,000
Core, net of service charge of P20,000 750,000
NSF Check 110,000
Treasury bonds – 2 years 100,000 What amount should be reported as cash in bank in December 31,
Outstanding Checks 100,000 2016? ______________
Note Collected by bank including P15,000 interest 215,000
Cash on hand at year end 175,000 Problem 4
Aries Company kept all cash in a checking account. An examination of
8. What amount of cash should be reported? an accounting records and bank statement for the month of June
revealed the following information:
a. 2,930,000
b. 3,095,000  The cash balance per book on June 30 is P8,500,000.
c. 2,895,000  A deposit of P1,000,000 that was placed in the bank’s night
d. 3 195,000 depository on June 30 does not appear in the bank
statement.
 The bank statement shows on June 30 bank collected note
for Aries and credited the proceeds of P950,000 to the
entity’s account.
 Checks outstanding on June 30 amount to P 300,000.
 Aries discovered that a check written in June for P200,000
in payment of an accounts payable, had been recorded in
the entity’s records as P20,000.
 Included with June bank statement was a NSF check for
P250,000 that Aries had received from customer on June
26.
 The bank statement shows a P20,000 service charge for
June.

What amount should be reported as cash in bank on June 30?

Problem 1
____________
In preparing the bank reconciliation for the month of August, Apex
Company provided the following information:
Balance per bank statement P 1,805,000 PROBLEM 5
Deposit in Transit 325,000
Able Company received the bank statement for the month of march. Bank service charge for April P15,000
However, the closing balance of the account was unreadable. Check deposited by Letty during April was not collectible
And has been marked as “NSF“ by the bank and returned 40,000
Attempts to contact the bank after hour did not secure the desired
information. In Comparing the bank statement to its own records, the entity found
February 28 book balance P1,460,000 the following:
Note collected by the bank 100,000 Deposit made but not yet recorded by the bank 130,000
Interest earned on note 10,000 Check written and mailed but not yet recorded by the P100,000
NSF checks of customers 130,000 Entity books.
Bank service charge on NSF check 2,000
Other bank service charges 3,000 A customer check for P35,000 payable to Letty Company had not yet
Outstanding checks 202,000 been deposited and had not been recorded by the entity.
Deposit on February 28 placed in night depository 85,000
Check issued by Axle Company charge to Able’s account P20,000 The cash in bank account balance per ledger is P920,000.

What is the cash balance per bank statement? ________________ What is the adjusted cash in bank on April 30? _______________
What is the unadjusted cash in bank on April 30? _____________
PROBLEM 6
Stellar Company provided the bank statement of the month of
December which included the following information:
Ending balance, December 31 P2,800,000
Bank service charge for December 21,000
Interest paid by the bank to Stellar Company for Dec. 10,000
In Comparing the bank statement to its own cash records, the entity
found the following:
Deposit made but not yet recorded by the bank 350,000
Checks written and mailed but not yet recorded by
the bank P650,000
In addition, the entity discovered that it had drawn and erroneously
recorded a check for P46,000 that should have been recorded
P64,000.

What is the cash balance per ledger on December 31? ___________

PROBLEM 8
Letty Company provided the bank statement for the month of April
which included the following information:

Problem 1
In preparing the bank reconciliation for the month of August, Step Sobremesana Company provided the following information:
Balance per bank statement 1,805,000
Deposit in transit 325,000
Return of customer’s check foe insufficient fund 60,000
Outstanding checks 275,000
Bank service charge for August 10,000
1. What is the adjusted cash in bank?
a. 1,855,000 b. 1,785,000 c. 1,795,000 d. 1,755,000

Problem 2
JD Apares Company provided the following data for the month of December:
Balance per book 1,000,000
Bank service charge 3,000
Outstanding checks 235,000
Deposit in transit 300,000
Customer note collected by bank 375,000
Interest in customer note 15,000
Customer check returned DAIF 62,000
Depositor’ payment of note payable charge to account 250,000

2. What is the adjusted cash in bank?

a. 1,575,000 b. 1,065,000 c. 1,075,000 d. 1,325,000
3. What is the unadjusted cash in bank per bank statement?
a. 1,310,000 b. 1,010,000 c. 775,000 d. 945,000

Problem 3
Beverly Escobido Company provide the following date for the purposes of reconciling the cash balance per bank statement on
December 31, 2016:
Balance per bank statement 2,000,000
Outstanding checks 400,000
Deposit in Transit 200,000
December NSF Checks 150,000
Erroneous credit to Escobido’s account, representing proceeds of loan granted to another company 300,000
Proceeds of note collected by the bank for the Company, net of service charge of P20,000 750,000

4. What amount should be reported as correct cash in bank on December 31, 2016?
a. 1,500,000 b. 1,400,000 c. 1,800,000 d. 1,450,000

5. What is the unadjusted cash in bank per ledger?

a. 850,000 b. 900,000 c. 880,000 d. 2,000,000

Problem 4
Jannah Turingan Company provided the bank statement for the month of December which included the following information:
Ending Balance, December 31 2,800,000
Bank service charge for December 12,000
Interest paid by the bank to Turingan Company 10,000

In Comparing the bank statement to its own cash records, the entity found the following:
Deposits made but not yet recorded by the bank 350,000
Checks written and mailed but not yet recorded by the bank 650,000

In addition, the entity discovered that it had drawn and erroneously recorded a check for P 46,000 that should have been recorded
for P 64,000.

6. What is adjusted cash in bank to be reprted on December 31?

a. 2,500,000 b. 2,520,000 c. 2,540,000 d. 2,800,000
7. What is the cash balance per ledger on December 31?
a. 2,500,000 b. 2,520,000 c. 2,540,000 d. 2,800,000

Problem 5
Niel Murla Company provided the following information for the month of December:
Balance per bank statement 2,800,000
Deposit in transit 195,000
Check book printing charge 5,000
Time deposit – 3 months 25,000
Error made by Murla in recording a check issued in December 35,000
NSF checks 110,000
Treasury bonds – 2 years 100,000
Outstanding checks 100,000
Note collected by bank including P 15,000 interest 215,000
Cash on hand at year-end 175,000
8. What amount of cash should be reported?
a. 2,930,000 b. 3,095,000 c. 2,895,000 d. 3,195,000

Problem 6
The cash account shows a balance of P 450,000 before reconciliation. The bank statement does not include a deposit of P 23,000
made on the last day of month. The bank statement show a collection by the bank of P 9,400 and a customer’s check for P 3,200 was
returned because it was NSF. A customer’s check for P 4,500 was recorded on the books at P 5,400 and a check written for P 790 was
recorded as P 970.
9. The adjusted balance in the cash account was
 a. 455,120 b. 455,480 c. 457,280 d. 478,480
10. The unadjusted bank balance was
a. 432,120 b. 432,480 c. 434,280 d. 455,480

Problem 4
On December 31, 2018, Kath Company’s books reflected a balance of P 32,560. In reconciling the bank and book amounts, it was
found out that the company deposited P 11,825 but not yet credited by the bank and issued checks for payment of expenses, P9,885
which was not yet cleared by the bank

Note receivable of P 250,000 and interest income of P 2,500 were collected by the bank but not recorded in the books. The bank also
returned Customer’s NSF check amounting to 42,040 and gave a credit memo of P 24,040.

Cash sales of P 64,025 were recorded in the books but the amount was reported missing and a deposit of Kath was erroneously
recorded by the bank as P 2,300 instead of P 3,500.

11. How much is the adjusted book balance?

a. 190,040 b. 203,065 c. 178,995 d. none of the above
12. How much is the unadjusted bank balance?
a. 199,925 b. 205,005 c. 212,950 d. none of the above

Problem 5
The company had a bank balance of P 50,499 before the following reconciling items were given: outstanding checks of P 20,789. Debit
memo of P 2,300, deposit in transit of P 4,500, NSF check of P 6,789 and a credit memo of P 19,839.

13. How much is the adjusted bank balance?

a. 68,909 b. 66,788 c. 36,921 d. 34,210
14. How much is the unadjusted book balance?
a. 24,000 b. 25,000 c. 24,346 d. 23,460