(For question numbers 1 and 2)

On January 1, 2019, BoomBoom Company established a petty cash fund of P11,000. On December 31, 2019,
the petty cash fund examined and found to have receipts and documents for miscellaneous general expenses
amounting to P7,500. In addition, there was cash amounting P2,800.

1. Compute for the amount of petty cash shortage or overage. (Note: If it is shortage, put negative sign.
Example: -1,000)
2. In the journal entry to adjust the petty cash fund on December 31, 2019, how much will be credited to petty
cash fund?

3. The following are balances of Calea Company at December 31, 2019:

Undeposited collections (in currency and coins) P 40,200
Checking account 620,000
Disbursement checks written and recorded in December 2019 but are
to be released to the payees in January 2020 160,000
Time deposits (expected use in February 2020) 1,800,000
Money order 26,700
Money market placement 50,000
Compute for the amount of “cash” that should be reported on its December 31, 2019 balance sheet.

(For question numbers 4 and 5)

The following information is provided by BraveHeart Corporation:
a) Currency and coin on hand amounted to P45,000.
b) A separate cash fund in the amount of P1,500,000 is restricted for the retirement of long-term debt.
c) Savings account amounting to P600,000 and a checking account of P900,000 are held at East West Bank.
d) Travel advances of P180,000 for executive travel for the first quarter of the next year.
e) BraveHeart has received a check dated March 5, 2020 in the amount of P380,000.
f) A bank overdraft of P250,000 has occurred at Checking account #300 at one the of the banks the
company uses to deposit its cash receipts. At the present time, the company has balances of P300,000
for Checking account #100, and P280,000 for Checking account #200 at such bank.
g) The company has two certificates of deposit, each totaling P500,000. These certificates of deposit have
maturity of 120 days and 240 days, respectively.
h) An IOU from a company officer in the amount of P20,000.
i) Petty cash fund of P5,000.

4. Compute for the total amount to be reported as “cash in bank”.

5. Compute for the total amount of “cash and cash equivalents” that must be reported at December 31, 2019.

(For question numbers 6 and 7)

The accountant of Freaky Company is in the process of preparing the company’s financial statements
for the year ended December 31, 2019. He is trying to determine the correct balance of cash and
cash equivalents to be reported as a current asset on the statement of financial position. The
following items are being considered:
a) Balances in the company’s accounts in Metro Bank:
• Current account P 81,000
• Savings account P 132,600
b) Undeposited customer checks of P24,700 (including a customer check dated January 7, 2020 for
P8,000)
c) Currency and coins on hand of P10,500
d) Savings account at RCBC with a balance of P2,950,000. This account is being used to accumulate
cash for future plant expansion in 2020.
e) Petty cash of P4,800 (currency of P1,700 and unreplenished vouchers for P3,100)
f) P200,000 in a current account at RCBC. This represents a 20% compensating balance for
P1,000,000 loan with the bank. Freaky Company is legally restricted to withdraw funds until the
loan is due in 2021.
 g) Treasury bills:
• Sixty-day bills P 90,000
• Seven-month bills 120,000
• Six-year bills purchased four months before maturity 360,000
• One-month bills purchased nine months before maturity 88,800
h) Time deposit, P170,000

6. Compute for the amount of “cash” that should be shown on the December 31, 2019 balance sheet.
7. Compute for the amount of “cash equivalents” that should be shown on the Dec. 31, 2019 balance sheet.

(For question numbers 8 and 9)

The petty cash custodian presented the following during the count:
Currency P 1,700
Petty cash vouchers:
Postage 400
Office supplies expense 700
Transportation expense 300
Computer repairs 800
Advances to office staff 1,500
A check drawn by Goya Corporation, payable to the petty cash custodian 7,200
An employee’s check, returned by bank, marked NSF 1,000
An envelope containing currency of P1,900 for a gift for a retiring employee 1,900
Total P15,500

The general ledger shows an imprest petty cash fund balance of P15,500 as of December 31, 2019.

8. Compute for the petty cash shortage or overage. (Note: If it is shortage, put negative sign. Example: -1,000)
9. Compute for the adjusted balance of PCF at December 31, 2019.

10. Confucius Corporation has the following cash fund balances as of December 31, 2019:

Petty cash fund P 5,000 Cash fund set aside for bond payable due 3/31/20 P 77,500
Sinking fund 21,900 Insurance fund 60,000
Plant expansion fund 190,000 Cash fund set aside for note payable due 8/1/20 95,000
Dividend fund 45,000 Cash fund set aside for note payable due 2/3/20 58,400
Travel fund 83,000 Fund for contingencies 31,000

Compute for the cash fund to be presented as part of “cash and cash equivalents” for December 31, 2019
balance sheet.

(For question numbers 11 and 12)

On January 1, Endtime Co. established a petty cash account and designates Mr. End Now as petty cash
custodian. The original amount included in the petty cash fund is P10,000. The following disbursements are
made from the fund: Office supplies, P3,460; Postage, P2,240; and Entertainment, P840. The balance in the
petty cash box is P3,200.

11. Compute for the adjusted balance of PCF at December 31, 2019.
12. In the journal entry to adjust the petty cash fund on December 31, 2019, how much will be credited to petty
cash fund?

(For question numbers 13 to 18)

The following recorded information are provided by Checker Company on December 31, 2019:
13. Customer check of P17,400 returned by bank December 26,2019 due to insufficient fund but subsequently
redeposited and cleared by bank after 7 days.
14. Customer check of P45,000 outstanding for 240 days.
15. Customer check for P120,000 dated January 10, 2020 received December 29,2019.
16. Check written and dated December 20, 2019 and delivered to the supplier on January 3, 2020, P56,000.
17. Check written and dated March 31, 2020 delivered to payee December 27, 2019, P290,000.
18. A check drawn and given to the supplier on April 1, 2019. Up to this day, the supplier was not able to
encash such check, P100,000.

What adjusting journal entries are necessary for the situations mentioned above? When no entry is
necessary, place “no entry” on the corresponding letter of the information.

19. The following information pertains to a checking account of a company at June 30, 2019:

Balance per bank statement P 200,000

Interest earned for the second quarter 500
Outstanding checks 15,000
Customer’s checks returned for insufficient funds 5,000
Deposit in transit 25,000

Compute for the cash balance per books as of June 30, 2019.

20. A company is reconciling its bank statement with internal records. The cash balance per the company’s
books is P90,000. There are P10,000 of bank charges not yet recorded, P15,000 of outstanding checks,
P25,000 of deposits in transit, and P30,000 of bank credits and collections not yet taken up in the
company’s books. Compute for the cash balance per bank.

(For question numbers 21 and 22)

On July 5, 2019, Daniel Matsudilla Company received its bank statement for the month ending June 30. The
statement showed a P209,500 balance while the cash balance per ledger on June 30 was P35,000. In
reconciling the balances, the accountant discovered that:
a) The June 30 collections of P176,000 were recorded on the books but were not deposited until July.
b) The bank service charges for the month of June totaled P3,000.
c) A paid check for P24,300 was entered incorrectly in the cash payments journal as P34,200.

21. Compute for the adjusted cash balance as of June 30, 2019.
22. Compute for the total outstanding checks as of June 30, 2019.

(For question numbers 23 to 25)

The books of Frozen Service Company disclosed a cash balance of P687,570 on December 31, 2019. The
bank statement as of December 31 showed a balance of P690,450. Additional information that might be useful
in reconciling the two balances follows:
a) Check #748 for P30,000 was recorded on the books as P45,000.
b) The deposit of December 24 was recorded on the books as P28,950, but it was actually a deposit of
P27,000.
c) Outstanding checks totaled P98,850 as of December 31.
d) There were bank service charges for December of P2,100 not yet recorded on the books.
e) Frozen’s account has been charged on December 26 for a customer’s NSF check for P12,960.
f) Frozen properly deposited P6,000 on December 3 that was not recorded by the bank.
g) Receipts on December 31 for P134,250 were recorded by the bank on January 2.
h) A bank memo stated that a customer’s note for P45,000 and interest of P1,650 had been collected
December 27, and the bank charged a P360 collection fee.

23. Compute for the adjusted cash balance on December 31, 2019.
24. How much is the NET debit adjustment in the books of Frozen Service Company?
25. Compute for the total amount that needs to be added to the balance per bank to arrive at the correct
balance of cash on December 31, 2019.
(For question numbers 26 to 32)
In reconciling the cash in bank of Darren Company with the bank statement balance for the month of
November 2019, the following data were presented:
Cash balance per books, October 31 P 220,000
Book debits for November, including October credit for note collected by bank, 800,000
P60,000
Book credits for November, including October debit for NSF, P20,000 and service 620,000
charge of P800
Bank credits for November, including Nov. credit for bank loan of P100,000 and 700,000
October deposit in transit for P80,000
Bank debits for November including October outstanding checks of P170,800 and 600,000
November service charge of P200

26. Compute for the balance per bank statement on October 31.
27. Compute for the adjusted cash balance on October 31.
28. Compute for the cash balance per ledger on November 30.
29. Compute for the cash balance per bank statement on November 30.
30. Compute for the outstanding checks for November.
31. Compute for the deposit in transit for November.
32. Compute for the adjusted cash balance on November 30.

(For question numbers 33 to 40)

You obtained the following information on the current account of Juan Carlos Company for the year ended
December 31, 2019:
The bank statement on November 30, 2019 showed a balance of P306,000. Among the bank credits in
November was customer’s note for P100,000 collected for the account of the company which the company
recognized in December among its receipts. Included in the bank debits were bank service charges amounting
to P1,200 and a P40,000 check which was charged by the bank in error against Juan Carlos Company’s
account. Also in November you ascertained that there were deposits in transit amounting to P80,000 and
outstanding checks totaling P170,000.
The bank statement for the month of December showed total credits of P416,000 and total charges of
P204,000. The company’s books for December showed total debits of P735,600, total credits of P407,200 and
a balance of P485,600. Bank debit memos for December were: #121 for service charges, P1,600 and #122 on
a customer’s returned check marked NSF for P24,000.
On December 31, 2019, the company placed with the bank a customer’s promissory note with a face
value of P120,000 for collection. The company treated this note as part of its receipts although the bank was
able to collect on the note only in January 2020. In addition, a check for P3,960 was recorded in the company
cash payments books in December as P39,600.

33. Compute for the cash balance per bank statement as of December 31, 2019.
34. Compute for the cash balance per ledger as of November 30, 2019.
35. Compute for the undeposited collections as of December 31, 2019.
36. Compute for the outstanding checks as of December 31, 2019.
37. Compute for the adjusted cash balance as of November 30, 2019.
38. Compute for the adjusted bank receipts for December.
39. Compute for the adjusted book disbursements for December.
40. Compute for the adjusted cash balance as of December 31, 2019.