Question 1

Campbell Company had the following account balances on December

31, 2023:

Petty cash fund 50,000

Cash in bank – current account 4,000,000
Cash in bank – payroll account 1,200,000
Cash in bank – sinking fund 2,000,000
Cash on hand 500,000
Cash in bank – restricted account for plant 1,500,000
addition and expected to be disbursed in
2024
Treasury bills 1,000,000

The petty cash fund included unreplenished December 2023 petty cash
expense vouchers P5,000 and employee IOU P5,000.

The cash on hand included a P100,000 customer check payable to

Campbell dated January 15, 2024.

In exchange for a guaranteed line of credit, the entity has agreed to

maintain a minimum balance of P200,000 in the unrestricted current
bank account.

The sinking fund is set aside to settle a bond payable that is due on
December 31, 2024.

Question: What total amount should be reported as cash and cash

equivalents on December 31, 2023?

Question 2

Love Company reported the following information in relation to cash on

December 31, 2023:

* Checkbook balance, P4,000,000.

* Undeposited collections, P400,000.
* A customer check amounting to P200,000 dated January 2, 2024
was included in the December 31, 2023 checkbook balance.
* Another customer check for P500,000 deposited on December
22, 2023 was included in the checkbook balance but returned by
the bank for insuNiciency of fund.
 This check was redeposited on December 26, 2023 and cleared
two days later.

* A P400,000 check payable to supplier dated and recorded on

December 30, 2023 was mailed on January 16, 2024.

* A petty cash fund of P50,000 comprised the following on

December 31, 2023:

Coins and currencies 5,000

Petty cash vouchers 40,000
Refundable deposit for returnable containers 5,000
50,000

* A check of P40,000 was drawn on December 31, 2023 payable to

Petty Cash.

Question A: What is the adjusted cash in bank on December 31,

2023?

Question B: What total amount should be reported as cash on

December 31, 2023?

Question 3

Aries Company kept all cash in a checking account. An examination of

the accounting records and bank statement for the month of June
revealed the following information:

* The cash balance per book on June 30 was P8,500,000.

* A deposit of P1,000,000 that was placed in the bank’s night
depository on June 30 did not appear on the bank statement.
* The bank statement showed that on June 30 the bank collected
note for the entity and credited the proceeds of P950,000 to the
entity’s account, net of collection charge P50,000.00
* Checks outstanding on June 30 amounted to P300,000 including
certified check of P100,000.
* The entity discovered that a check written in June for P200,000 in
payment of an account payable had been recorded in the entity’s
records as P20,000.
* Included with the June bank statement was NSF check for
P250,000 received from a customer on June 26.
* The bank statement showed a P20,000 service charge for June.
Question A: What amount should be reported as cash in bank on June
30?

Question B: What is the balance per bank statement on June 30?

Question C: What is the net adjustment to cash in bank on June 30?

(amount of net debit or net credit)

Question 4

In reconciling the cash balance on December 31 with that shown in the

bank statement, Sam Company provided the following information:

Balance per bank statement 4,000,000

Balance per book 2,700,000
Outstanding checks 600,000
Deposit in transit 475,000
Service charge 10,000
Proceeds of bank loan, December 1, discounted
for 6 months at 12%, not recorded on Sam
Company’s books 940,000
Customer check charged back by bank for
absence of counter signature 50,000
Deposit of P100,000 incorrectly recorded by bank
as 10,000
Check of Sim Company charged by bank against
Sam account 150,000
Customer note collected by bank in favor of Sam
Company.
Face 400,000
Interest 40,000
Total 440,000
Collection fee 5,000 435,000
Erroneous debit memo of December 28, to charge
Sam account with settlement of bank loan 200,000
Deposit of Sim Company credited to Sam account 300,000

Question: What amount should be reported as adjusted cash in bank

on December 31?

Question 5
Pearl Company maintains a checking account at the City Bank. The bank
provides a bank statement along with canceled checks on the last day of
each month. The July bank statement included the following information:

Balance, July 1 550,000

Deposits 1,800,000
Checks processed 1,400,000
Service Charge 30,000
NSF check 120,000
Monthly loan payment deducted by bank from account 100,000

Deposits outstanding totaled P100,000 and all checks written by the

entity were processed by the bank except for check of P150,000.

A P200,000 July deposit from a credit customer was recorded as P20,000

debit to cash and credit to accounts receivable.

A check correctly recorded by the entity as P30,000 disbursement was

incorrectly processed by the bank as P300,000 disbursement.

Question A: What is the balance per bank on July 31?

Question B: What is the adjusted cash in bank on July 31?

Question C: What is the cash in bank balance per ledger on July 31?