PROFEL1-AC Activity – Assets Part 1

Name: _ Score:
Course & Section: Date:

Provide the properly labeled solutions in each given problem.

1. Armenia Company reported the following information on December 31,

2022: Cash on hand 1,000,000

Petty cash fund 50,000
Cash in bank 4,000,000
Saving deposit 2 ,000,000
7,050,000
 Cash on hand included the
following:
a. Customer check of P100,000 returned by bank December 26,2022 due to insufficient fund
but subsequently redeposited and cleared by bank January 5,2023.
b. Customer check for P150,000 dated January 15,2023 received December 22,2022.
c. Postal money orders received from customers, P200,000.
 The petty cash fund consisted of the following items:
Currency and coins 2,000
Employees’ IOUs 10,000
Currency in envelope marked collections for
Christmas party 5,000
Check drawn by Armenia payable to petty cashier 33,000
50,000

 Check written and dated December 22,2022 and delivered to payee on January 5,202, P200,000.
 Check written December 26,2022 and dated January 31, 2023 delivered to payee on December
26,2022, P300,000.

Required:
1. Prepare adjusting entries on December 31,2022.
2. Compute the total cash on December 31,2022.

2. On December 1, 2022, Wacky Company established an imprest petty cash fund.

2022
Dec 01 Established an imprest petty cash fund of P10,000 by writing a check on National Bank.
20 Replenished the petty cash fund by writing a check on National Bank. The fund
contained:
Currency and coins 1,000
Vouchers for selling expenses 5,000
Vouchers for miscellaneous expenses 2,000
Vouchers for equipment 2,000
31 The petty cash fund was not replenished. The fund contained:
Currency and coins 6,000
Postdated employee’s check 2,000
Vouchers for selling expenses 1,500
Vouchers for transportation 500
 2023
Jan 15 Encashed the employee’s check. The proceeds were retained in the fund.
31 Replenished the petty cash fund by writing a check on National Bank. The petty cash
vouchers for January expenditures are:
Distribution costs 500
Administrative expenses 2,000
Transportation 1,000
Payment for supplier’s invoice 1,200

Required:
1. Prepare journal entries to record the transactions.
2. How much is the petty cash on January 31,2023 before the replenishment?

3. Radiant Company provided the following data for the month of January:
Balance per bank statement, January 31 3,500,000
Collections on January 31 but undeposited 550,000
NSF Check received from a customer returned by the bank
on February 5 with the January bank statement 50,000
Checks outstanding on January 31 650,000
Bank debit memo for safety deposit box rental not recorded by depositor 5,000
A creditor’s check for P30,000 was incorrectly recorded in the
depositor’s book as 300,000
A customer’s check for P200,000 was recorded by the depositor as 20,000
The depositor neglected to make an entry in its book for a check
drawn in payment of an account payable 125,000

Required:
Compute the balance in the cash account before corrections and prepare adjusting entries.

4. Beehive Company provided the following information:

Balance per book October 31 600,000
Receipts per book for November (collection from customer,
P100,000 recorded as P10,000) 2,200,000
Disbursement per book for November (check for P300,000
in payment of account recorded as P30,000) 1,800,000
Balance per bank statement November 30 930,000
Deposit in transit October 31 300,000
Outstanding checks November 30 400,000
Bank receipts for November including an erroneous credit of
P100,000 which should have been credited to Beeline Comp 2,500,000
Bank disbursements for November including check of Beeline Comp
P200,000 1.970,000

Required:
Prepare bank reconciliation on October 31 and November 30, and adjusting entries on
November 30.