Practice Set: Audit of Cash and Cash Equivalents
Practice Set: Audit of Cash and Cash Equivalents
Included among the checks drawn by the entity against the Philippine Bank current account and
recorded in December 2021 are:
• Check written and dated December 23, 2021 and delivered to payee on January 3, 2022, P100,000
• Check written December 23, 2021, dated January 30, 2022 delivered to payee on December 28,
2021, P150,000
What total amount should be reported as cash and cash equivalents on December 31, 2021?
2. Saint Pollen Company had the following account balances on December 31, 2021:
• The petty cash fund included unreplenished December 2021 petty cash expense vouchers P5,000
and employee IOU P5,000
• The cash on hand included a P100,000 customer check payable to Saint Pollen dated January
15, 2022
• 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 bond sinking fund is set aside to settle bonds payable due on December 31, 2022.
What total amount should be reported as cash and cash equivalents on December 31, 2021?
3. Vienna Company reported the checkbook balance on December 31, 2021 at P5,000,000 and held the
following items on same date:
4. In reconciling the cash balance on December 31 with that shown in the bank statement, Austria
Company provided the following information:
5. Salzburg Company received the bank statement for the month of March. However, the closing
balance of the account was unreadable.
Attempts to contact the bank after hours did not secure the desired information.