EX 8-25 Cash to monthly cash expenses ratio

During 2016, PT Mulia Jaya has monthly cash expenses of Rp 168,500,000. On December
31,2016 the cash balance is Rp 1,415,400,000
a. Compute the ratio of cash to monthly cash expenses
b. Based on (a), what are the implications for PT Mulia Jaya?

EX 28-6 Cash to monthly cash expenses ratio

Capstone Turbine Corporation produces and sells turbine generators for such applications as
charging electric, hybrid vehicles. Capstone Turbine Corporation reported following financial
data for a recent year (in thousands).
Net cash flows from operating activities Ṩ(21,438)
Cash and cash equivalents 49,952
a. Determine the monthly cash expense. Round to one decimal place.
b. Determine the ratio of cash to monthly cash expenses. Round to one decimal place.
c. Based on your analysis, do you believe that Capstone Turbine will remain in business?
EX 28-7 Cash to monthly cash expenses ratio
Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treatment
of various diseases, including Parkinson’s disease. Amicus Therapeutics reported the following
financial data (in thousands) for three recent years:
For years Ended December 31

Year 3 Year 2 Year 1

Cash and cash equivalents Ṩ25,668 Ṩ29,572 Ṩ19,339

Net cash flows from operations (49,422) (13,983) (43,371)

a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1. Round to one
decimal place
b. Determine the ratio of cash to monthly cash expenses for Year 3, Year 2, and Year 1 as of
December 31. Round to one decimal place
c. Based on (a) and (b), comment on Amicus Therapeutics’ ratio of cash to monthly
operating expenses for Year 3, Year 2, and Year 1
Problems Series A

PR 8-1A Evaluating internal control of cash

The following procedures were recently installed by PT Rasberi Prima:
a. After necessary approvals have been obtained for the payment of a voucher, the treasurer
signs and mails the check. The treasurer then stamps the voucher and supporting
documentation as paid and returns the voucher and supporting documentation to the
accounts payable clerk for filing.
b. The accounts payable clerk prepares a voucher for each disbursement. The voucher along
with the supporting documentation is forwarded to the treasurer’s office for approval.
c. Along with petty cash expense receipts for postage, office supplies, etc., several
postdated employee checks are in the petty cash fund.
d. At the end of the day, cash register clerks are required to use their own funds to make up
any cash shortages in their registers
e. At the end of each day, all cash receipts are placed in the bank’s night depository.
f. At the end of each day, an accounting clerk compares the duplicate copy of the daily cash
deposit slip with the deposit receipt obtained from the bank
g. All mail is opened by the mail clerk, who forwards all cash remittances to the cashier.
The cashier prepares a listing of the cash receipts and forwards a copy of the list to the
accounts receivable clerk for recording in the accounts.
h. The bank reconciliation is prepared by the cashier, who works under the supervision of
the treasurer.

Instructions
Indicate whether each of the procedures of internal control over cash represents (1) a strength
or (2) a weakness. For each weakness, indicate why it exists.

PR 8-2A Transactions for petty cash, cash short and over

PT Mega Restorasi completed the following selected transactions during May 2016:
May 1. Established a petty cash fund of Rp 750,000
12. The cash sales for the day, according to the cash register records, totaled Rp
12,440,000. The actual cash received from cash sales was Rp 12,465,000
31. Petty cash on hand was Rp 157,000. Replenished the petty cash fund for the
following disbursements, each evidenced by a petty cash receipt:
May 3. Store supplies Rp 390,000
7. Express charges on merchandise sold, Rp 35,000 (Delivery
Expense)
 9. Office supplies, Rp 16,000
13. Office supplies, Rp 22,000
19. Postage stamps, Rp 12,000 (Office supplies)
21. Repair to office file cabinet lock, Rp 15,000 (Miscellaneous
Administrative expense)
22. Postage due on special delivery letter, Rp 27,000 (Miscellaneous
Administrative expense)
24. Express charges on merchandise sold, Rp 55,000 (Delivery
expense)
30. Office supplies, Rp 6,000
31. The cash sales for the day, according to the cash register records, totaled Rp
18,820,000. The actual cash received from cash sales was Rp 18,780,000
31. Decreased the patty cash fund by Rp 100,000

Instructions
Journalize the transactions.

PR 8-3A Bank reconciliation and entries

The cash account for Prima Medika at November 30, 2016 indicated a balance of Rp 89,620,000.
The bank statement indicated a balance of Rp 128,660,000 on November 30, 2016. Comparing
the bank statement and the accompanying canceled checks and memos with the records revealed
the following reconciling items:
a. Checks outstanding totaled Rp 32,700,000
b. A deposit of Rp 18,550,000 representing receipts of November 30, had been made too
late to appear on the bank statement.
c. The bank collected Rp 26,750,000 on a Rp 25,000 note, including interest of Rp
1,750,000
d. A check for Rp 1,500,000 returned with the statement had been incorrectly recorded by
Prima Medika as Rp 150,000. The check was for the payment of an obligation to CV
Adiguna for a purchase on account.
e. A check drawn for Rp 490,000 had been erroneously charged by the bank as Rp 940,000
f. Bank service charges for November amounted to Rp 60,000

Instructions
1. Prepare a bank reconciliation
2. Journalize the necessary entries. The accounts have not been closed.
3. If a statement of financial position were prepared for Prima Medika on November 30,
2016, what amount should be reported as cash?
PR 8-4A Bank reconciliation and entries
The cash account for PT Adika at May 1, 2016 indicated a balance of Rp 34,250,000. During
May, the total cash deposited was Rp 140,300,000 and checks written totaled Rp 138,880,000
The bank statement indicated a balance of Rp 43,525,000 on May 31, 2016. Comparing the bank
statement and the accompanying canceled checks and the memos with the records revealed the
following reconciling items:
a. Checks outstanding totaled Rp 6,440,000
b. A deposit of Rp 1,850,000 representing receipts of May 31, had been made too late to
appear on the bank statement.
c. The bank had collected for PT Adika Rp 5,250,000 on a note left for collection Rp
25,000 note, including interest of Rp 1,750,000
d. A check for Rp 390,000 returned with the statement had been incorrectly charged by the
bank as Rp 930,000
e. A check for Rp 210,000 returned with the statement had been recorded by PT Adika as
Rp 120,000. The check was for the payment of an obligation to CV Sapta Unggul on
account
f. Bank service charges for May amounted to Rp 30,000
g. A check for Rp 1,325,000 from CV Swakarya was returned by the bank due to
insufficient funds.

Instructions
1. Prepare a bank reconciliation as of May 31
2. Journalize the necessary entries. The accounts have not been closed.
3. If a statement of financial position were prepared for PT Adika on May 31, 2016,
what amount should be reported as cash?

PR 8-5A Bank reconciliation and entries

Teguh Furniture deposits all cash receipts each Wednesday and Friday in a night depository,
after banking hours. The data required to reconcile the bank statement as of June 30 have been
taken from various documents and records and are reproduced as follows. The sources of the
data are printed in capital letters. All checks were written for payments on account.
Problems Series B

PR 8-1B Evaluating internal control of cash

The following procedures were recently installed by PT Sukses Makmur:
a. All sales are rung up on the cash register, and a receipt is given to the customer. All sales
are recorded on a record locked inside the cash register.
b. Each cashier is assigned a separate cash register drawer to which no other cashier has
access.
c. At the end of a shit, each cashier counts the cash in his or her cash register, unlocks the
cash register record, and compares the amount of cash with the amount on the record to
determine cash shortagesand overages.
d. Checks received through the mail are given daily to the accounts receivable clerk for
recording collections on account and for depositing in the bank.
e. Vouchers and all supporting documents are perforated with a PAID designation after
being paid by the treasurer.
f. Disbursements are made from the petty cash fund only after a petty cash receipt has been
completed and signed by the payee.
g. The bank reconciliation is prepared by the cashier.

Instructions
Indicate whether each of the procedures of internal control over cash represents (1) a strength
or (2) a weakness. For each weakness, indicate why it exists.

PR 8-2B Transactions for petty cash, cash short and over

PT Bintang Pratama completed the following selected transactions during June 2016:
June 1. Established a petty cash fund of Rp 1,000,000
12. The cash sales for the day, according to the cash register records, totaled Rp
9,440,000. The actual cash received from cash sales was Rp 9,506,000
30. Petty cash on hand was Rp 46,000. Replenished the petty cash fund for the
following disbursements, each evidenced by a petty cash receipt:
June 2. Store supplies Rp 375,000
10. Express charges on merchandise purchased, Rp 105,000
(Merchandise Inventory)
14. Office supplies, Rp 85,000
15. Office supplies, Rp 90,000
 18. Postage stamps, Rp 33,000 (Office supplies)
20. Repair to fax, Rp 100,000 (Miscellaneous Administrative expense)
21. Repair to office door lock, Rp 25,000 (Miscellaneous
Administrative expense)
22. Postage due on special delivery letter, Rp 9,000 (Miscellaneous
Administrative expense)
28. Express charges on merchandise purchased, Rp 110,000
(Merchandise Inventory)
30. The cash sales for the day, according to the cash register records, totaled Rp
13,390,000. The actual cash received from cash sales was Rp 13,350,000
30. Increased the patty cash fund by Rp 200,000

Instructions
Journalize the transactions.

PR 8-3B Bank reconciliation and entries

The cash account for PT Agung Sembada at July 31, 2016 indicated a balance of Rp 17,750,000.
The bank statement indicated a balance of Rp 33,650,000 on July 31, 2016. Comparing the bank
statement and the accompanying canceled checks and memos with the records reveals the
following reconciling items:
a. Checks outstanding totaled Rp 17,865,000
b. A deposit of Rp 9,150,000 representing receipts of July 31, had been made too late to
appear on the bank statement.
c. The bank had collected Rp 6,095,000 on a note left for collection. The face of the note
was Rp 5,750,000
d. A check for Rp 390,000 returned with the statement had been incorrectly recorded by PT
Agung Sembada as Rp 930,000. The check was for the payment of an obligation to CV
Mayang for a purchase of office supplies on account.
e. A check drawn for Rp 1,810,000 had been incorrectly charged by the bank as Rp
1,180,000
f. Bank service charges for July amounted to Rp 80,000

Instructions
1. Prepare a bank reconciliation
2. Journalize the necessary entries. The accounts have not been closed.
3. If a statement of financial position were prepared for PT Agung Sembada on July 31,
2016, what amount should be reported as cash?
PR 8-4B Bank reconciliation and entries
The cash account for CV Banda Utama on November 1, 2016 indicated a balance of Rp
81,145,000. During November, the total cash deposited was Rp 293,150,000 and checks written
totaled Rp 307,360,000. The bank statement indicated a balance of Rp 112,675,000 on
November 30, 2016. Comparing the bank statement, the canceled checks and the accompanying
memos with the records revealed the following reconciling items:
a. Checks outstanding totaled Rp 41,840,000
b. A deposit of Rp 12,200,000 representing receipts of November 30, had been made too
late to appear on the bank statement.
c. A check for Rp 7,250,000 had been incorrectly charged by the bank as Rp 2,750,000.
d. A check for Rp 210,000 returned with the statement had been recorded by CV Banda
Utama as Rp 7,600,000. The check was for the payment of an obligation to CV Niaga
Karya on account.
e. The bank had collected for CV Banda Utama Rp 7,385,000 on a note left for collection.
The face of the note was Rp 7,000,000.
f. Bank service charges for November amounted to Rp 125,000
g. A check for Rp 2,500,000 from CV Swamandiri was returned by the bank because of
insufficient funds.

Instructions
1. Prepare a bank reconciliation as of November 30.
2. Journalize the necessary entries. The accounts have not been closed.
3. If a statement of financial position were prepared for CV Banda Utama on November
30, 2016, what amount should be reported as cash?

PR 8-5B Bank reconciliation and entries

Kamala Interiors deposits all cash receipts each Wednesday and Friday in a night depository,
after banking hours. The data required to reconcile the bank statement as of July 31 have been
taken from various documents and records and are reproduced as follows. The sources of the
data are printed in capital letters. All checks were written for payments on account.
BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30):
Cash balance according to bank statement…………………………… Rp 9,422,800
Add deposit of June 30, not recorded by bank……………………….. Rp 780,800

Rp 10,203,600
Deduct outstanding checks:
No. 580……………………………… Rp 310,100
No. 602……………………………… Rp 85,500
No. 612……………………………… Rp 92,500
No. 613……………………………… Rp 137,500 Rp 625,600
Adjusted Balance……………………………………………………… Rp 9,578,000
Cash balance according to company’s records……………………….. Rp 9,605,700
Deduct service charges……………………………………………….. Rp 27,700
Adjusted balance……………………………………………………... Rp 9,578,000
CASH ACCOUNT:
Balance as of July 1 Rp 9,578,000
CASH RECEIPTS FOR MONTH OF JULY
DUPLICATE DEPOSIT TICKETS: Rp 6,465,420
Date and amount of each deposit in July:
Date Amount Date Amount Date Amount

July 2 Rp 569,500 July 12 Rp 580,700 July 23 Rp 713,450

5 Rp 701,800 16 Rp 600,100 26 Rp 601,500
9 Rp 819,240 19 Rp 701,260 31 Rp 1,177,870