Chapter 3 Cash MULTIPLE CHOICE Tc 26 30 aa 36 6_E 76 al a 100 18 ae ae 14 - 150. Problem t (a) Aaotagystrents Cash Eguivaents 3.000000 Cash 3,000,000 One Noscurent Firancial Assets 3.200000 Cash 3200000 Cash 36.000 Acoued Sabres Expense 5000 Oe Nowcurent Financial Assets 900 000 Cash 900.000 Niscelfeneais Expenses 6800 Aavances to Employees 1200 ‘Cash (Petty Cash Fund) 8.000 cash 5,300 Accrued Utlties Expense 500 Advances to Employees 1200 ‘Cash (Petty Cash Fund) 8,000 Cash 5300 ‘Acoued Usitles Expense 5,300 Accounts Revelvatle 25,000 cash 28,000 (b) Cash and Cash Equivalents ‘Savings accourt-with Metrobank 1,500,000 ‘Checking account with Metrobank 800,000 + 5,300 805 300 Certificates of epost 3,000,000, Payrolfend 1,200,000 + 35.000 1,238,000 Tax fund 00,000 Petty cash fund 12,000 ‘Undeposted collections 85,000 - 25.000 69.000 ‘Correct cash and cash equivalents FSRIPE i) Problem 2 (Sta. Monica, Inc.) Expenses, 10.500 Petty Cash Fund 10,800 Correct balance of petty cash fund = P20,000 ~ P10,600 = P9500‘Chapter 3 ‘Cash Problem 3 (Victor Company} @ Coect amount of petty cash fund Currencies and coins. P6490 (b) Percount Currencies and coins P6400 Paid petty cash vouchers 2250 Employee's NSF check 17200 ‘Wedding git contribution (with bits) _io Total per count 11,380 Cashiers accountabity: Petty cash fund, per ledger 10.000 Wedding git contribution 4 4 ‘Cash shortage bap (0) Audit Asjusting Entries, Delivery Expense 250 Office Supdiies Expense "60 Employees Medicine 240 Transportation Expense 400 Repairs end Maintenance 400 Recelvables from Erployees 2,000 Cash Shortage (or Misc. Expenses or Receivables trEmployees) 150 Petty Cash Fund 3,600 Problem 4 (Rainbow Corporation) (@) Tata per count P3500 Casters Accountability Petty Cash Fund, per ledger 35,000 Unused postage stamps 1.800 Unused office supplies 1200 Wedding gif contributon tom — _39.000 ash shortage eso [B) Telephone Expense 1.600 Water Expense 11600 Office Supotes Expense (3700 - 1.2001 2.500 Postage Expense (2.800 - 1,800) 1,000 Prepaid Expenses (1.200 + 1,600) 3.000 Reoevvables from Employees ($900 + 4.000) 7900 Petty Cash Fund 17500 (0) Correct amount of petty cash fund = P35,000 — 17.500 = 17.500 Cash tems in the petty cash func: Bis and Core P2500 Replenishment check im Teta PTEChapter 3 Cash Problem 5 Bils and Coins (show details of denomination and pieces per denomination) P6717.50 Checks: Date Maker Amount 1228-12 Urqudla, empbyee P 3000.00 Sta. Mera, employee 4500.00 L. Chua, customer 2500.00 ‘A Botedilla, customer 320000 C German, employee (check received 12.2812) 100 1170000 Voucher No. Particulars, Amount 124312 151 Freightout P 500.00 122812 183 Supplies 300.00 122812 184 Fregntin 3420 123412 189 Freight oncabinet 741.10 01-0213 O01 Freight in 20 2,180.00 fous 12.2112 S. Dechavez 300.00 Unused office sipntes —_40.00 Tota per count 20.937 50 Cashier's accountabitty Patty cash fund, perledger 15,000.00, Unremitted cash sales ny. #718 — December 30 1,000.40 Inv. #128 December 31 2/5000 fav #133 January 2 zen00 670040 Unused office supplies: — 40.00 2240.49 Cash shottage 2 m0 Audi Adusting Entries: Receivables from Employees (1,500.00 + 300,00) 1800 Freight out 600 Supplies Expense (100-40) 260 Prepaid Expenses 40 Fumitue and Equipment 744.10 Freight in 394.20 Cash Shortage (Receivable from Employees) 020 Petty Cash Fund 4598.20 Cash in Bank (7,000.40 + 2,500.00) 3.50040 Saies 3.50040 Comect belance of petty cash fund (F'5,000 - 4.538 20) poss Composed of the following cash items at December 31, 2008 Bils and coins P871750 Checks dated December 7.00000 Petty cash vouchers dated January (uncisbursed as ‘of December 31) 2470 Total cash tems a5 of December 31 P73,96220 Unremitted cash sales as of December 31 (1,000.40 +2500) 12 500.40) Petty casi fund. per audi, Devenber 31 BassaChapter 3 Cash Problem 6 (Da King Company) Bils and coins 00x71 100x8 50x3 104 5x2 1x3 122012 -M Roxas, enployee A202 J. Magrigal Company: 1213 J. Estrada Junk Shop 011513 F. Chavez, employee (received 1227/12) Paid petty cash vouchers: 121612 Vo. No. 145. Freight on goods bought 1226112 164 Postage 122912 165. Trensportaon of messenger oy ees 166 Repars, completed Dec. 29, 2012 EdGil, employee Postage stamps 10 pos xP12 Total per count Cashiers accountatilty Petty cash fund Unremited callectons 1230/12 Refund for merchandise retumed P1500 (01/06/13 Sale of junk and scrap materials 2450 Unused postage stems (Cash shortage Agustina entres Receivable trom Employees (1,800 + 1,200 + shortage of 1.247) Freight in’Oost of Goods Sold Traneporation Expense Postage Expense (200 - 120) Prepaid Expenses Petty Cash Fund Repais and Maintenance ‘Accrued Exoenses (Cash in Bank Purchase Retums and Afowances /Oost of Goods Sold ‘Correct Petty Cash Fund = P100000 - P4907 = Cash items as of December 31 Bill and coins ‘Checks dated December Petty cash voucher dated January 2013 Cash refund for purchase returns Correct petty cash fund balance P 500 800 150 40 10 3. P 1803 2,000 1.500 2450 1800 7,750 500 200 50 1500 2280 1,200 120 P 12823 10,000 3.950 120 14,070 i 42e7 500 50 60 120 4907 1,500 1,500 4500 1,800 5.003 P1503 3500 1500 1500) 5,003Chapter 3 Cash Problem 7 (Cisco Systems, Inc) (1) Bark reconciatin: ‘Ousandina crecs. Undeoested recelots Bank service tomers DAIF check (2) Adjusting entry: Notes Payable ~ Bank 4900) hntees Expense 5.000 Bark Serice Che 140) ecounts Revena 12500 Rent Exgense 1800 Cash mn Bank 51.10 (3) Cash and cash equivdents: Petty cash fund P 20,000 Cash inbank 4.5212 ‘Treasury bils maturing in 2 morths —f00.000 ‘Tota cash anc cash equvalents Bigt5212 Problem 8 (Sunshine Corporation) 1 Pe Bans Pec Bonks Unadjusted Balances 424,000 485,000 Catstanting checks (113.000) Undepostes callections 48.000 ‘Customer's nol calected by bank +9.000 Bank sevice charge (50) ‘Adstes belances 359,000 Pae2 £00 Cash shorage 123,500) Cash balance, Devertber 31, per audit FIO 369.000 2 Understated book balance 456 000 — 465,000 P9000 Overstated bank balance 424 000-454 400 30.400 Omitesoustancrg checks 18 4200 1% 12500 Understated outstanding checks '2,000- 25000 27.000 9,000~ $00 8,700 26,000 15.000 10.000 Overstated undeposted colections 3.000 Omission of bark cect meno +3.000 Tota cash shortage FiZ3.500Chapter 3 Cash 3. Undeposted odllecons December 31 P 48,000 CColections, January 1 - 18 138.000 ‘Total amount avaliable for epost P247,000 ‘Amount deposted. per deposit sips 140,00 Undeposted collections, January 15 P37, 000 Cash on hand, January 15 52,000) ‘Additional ash shortage in January 785007 4 Adjusting Enwies Bank Charges 1500 Reoeivaole fom Employees (or Loss) 123.800 Cash 106000 Notes Receivatle 19,000 Problem 9 (Pamela Manufacturing Company) Nov. 30 Receipts Disbursements. Dec. 31 ‘Unadjusted bank balance 876750 9.153.780 8.526.550 1,503.60, Outsianding checks November 30 (254.720) (254720) December 34 3660 (8610) Deposits in tanst November 30 16420 (164.220) Decenber31 209.180 209.180 Check of Pamalona Company 5830) 5.830 Adjusted Balances T6087 7H 801610 73360 Nov. 30 Receipts Disbursements Dec. 31 Balance per books 2150-918 720 8613010 407,660, Errorin reconing check no. 369 2700 2700 Bank sence charge Noventer (3500) (3500) December 2.260 (2250) NSF check retuned in November (4900) (34900) Interest charged bythe bank Mi Adusted Balances TE5D50___—STETOD 301610 7365.360 Audt adjusting entries: asin Bank 2700 Office Furniture 2,700 Bark Service Chae 2.250 Cash in Bank 2250 Interest Bepense 24750 Cashin Bank 24.750Chapter 3 Cash Problem 10 (Golden Bells Company) Nov 30 Receipts Disbursements Dec. 31 Unadusted bank telance 2500000 2,300,000 170.000 3,400,000 Deposits in transit November 30 58000 (68,000) December 31 47,000 47,000 ‘Outstending checks November %0 (97000) (7.000) December 31 48,000 (46.000) Erroneous bank charges November 30 25000 (25,000) Devember 31 (37.000) 37.000 Erroneous bank credit November 0 (48,000) (48,000) December 3t (50,000 (60,000) Adjusted balances 2aaTpO)___2.2"4.000 TH6T000 3.068.000 Nov. 30 Receipts Disbursements Dec. 31 Unadusted book balances (squeezed) 230000 2206.00 4543000 3047.00 NSF checks retuned by bank November 30 (15.000) (1,000) December 31 B00 (25,000) Bank serie chages November (10,000) (10,000) December ‘#000 (18,000) Not callected byanic November 76000 (76,000) December 84,00), 84,000, ‘Adjusted balances 23500 214.000 1552.00 3.088.000 Accounts Receivable 25,000 Cashin Bank 25000 Bank Sevice rages / Mscelanedus Expenses 18,000 Cashin Bank 18.000 Cash in Bank 4,000 Notes Receivable 84.000Chapter 3 Cash Problem 11 (Starr Company) —— eat ___. Apr. 30 Receipts Disb. May 34 Unadjusted bank bdance 470.360 83.200 © 1320,600 32,960 Deposits in tanst ‘or 30 28360 29, May 31 (squeezed) 40560 Outstanding checks ‘Apa 3) (144800) (144800) May 31 ‘ e Adusiedbdances 3450) S40) 7.308.400 Ney 1334 A 0 Recepls Dis. May31 Unadjusted book balances (squeezed) 363.08 654.400 ean 240" 386 200 AIF checks retumed by tank Agri 0 (@000) (8.000), May31 Bank service charges Api (120) (720) May 20 (230) Check issued by the easier to himself 24000 [ (68.000) Proceeds ofloan gated by tank May 240,000 240,000 Agustedbalanoes TD 834.400 130840 (60080) “421,240 = 613,120 + 8.000 + 120 @ 1 P63 010 2 P4056) 3 696.000 4 P(60,080) (0) Adjusting entries: Bank Sevice Charges 280 Cash in Bank 280 Loss from TheftRecetvatle from Oficers 626.000 Cash in Bank 636,000 Cash in Bonk 240,000 ‘Notes Payable -Bank 240.000Chapter 3 Cash Problem 12 Rocky Mountain High) Nov.30 Recoipts Disbursements Dec. 6 Unadusied bank balance Pee3800 PES SND PES 600 ‘Deposits in transit Novenber 30 (a0 T8007 December3' (102,000~ 12.000) 90,000 $0000 Payment from collections, #2000 2000 (Outsanding checks Novenber 3) Cea) December 31 =62000 + 105000 + 3000+ 40.000 237,000 237.000 ‘Adjusted balances, wi 306,500 729,400 630,700 Nov.30 Receipts Disbursements Dec. 6 Unadjusted book talances (squeezes) 921,500 506 600 571,400 58700 Bank charges in December (200000 + 28 000) 229,000 228,000) ‘Adjusted balances 921500 508,600 703,400 630,700 posers (@) Pi4e900 (o) P116200 (o Pa2i500 (@) P830700Problem 13 TAD, one TOF SL 2 CG Tt. 72 AD 17. Note recorcling fem 3_ BF § KO 53. F.G 18 J.N 4. EH 30H 4. OF 19. LN SN "OB LN DNC Problem 14 (Controries Company) PettyCash Purchasing © CashinBark = Told Fund Fund Balances, per ledger P15,000 35000 P1344 500 184.800 Disbursed in 2012 6000) (20.000) 23.000) Bank credt memo 58.000 $8,000 Baances geraudt Ea F75000 2500 P26 500 ‘Adjusting entries | Gasoline Expense 4500 iscelaneau's Expenses 500 ‘Transportation Expense 1,000 Petty Cash Fune 6.000 Purchases or ventory 20,000 Purchasing Fund 20,000 Cashin Bank 58,000 Notes Receivable 8,000Chapter 3 Cash Problem 15 (Fortune Company) (a) Audit Adjustments Sales 285,200 Cash Cash 19,200 nities Payatie Accounts Receivable $7,600 Cash Accounts Receivable 32.500 Cash ‘No .enty, dividend furd is part of cash Accounts Receivable 3500 ash Cash Shotage’ Receivatie from Employees 0 ash ‘Noenty, payral funds pan of cash. Cash Shotage / Receivable from Emplayees 200 ‘Miscellaneous Exoenses 5800 Cash Cash 19,500 Misestaneous Income {b) Correct amount ofeash ‘Cash balance, per ledger 1,640.00 Cash sales of 2013 (285200) Unreleased check for utes 79,300 Postdated chexks received (87800) ‘Customers’ NSF checks (32500) Stale check (3500) Shortage in the change fund (550) 2082 vouchers in petty cash fund (5500) ‘Cash shortage in the patty cash fund (300) Uneecorded deposits (sale of scrap) 13500 Cash balance. per auct 251450. ‘Supply the Answers 285,200 19,300 57,800 32.500 5,800 13,500 [Note to the Teacher: Please supply the petty cash imprest balance of P50,000 jin problem B. (You may supply ‘another figure for variation in your other classes.) ‘Summary of Answers: 4. 308.40, 2 4,606.60Chapter 3 Cash 3 4 5 6 t a 8. 10. 11 12, 3. 14. 15. 6. 7. 8, 8. 2. a 2 zB a A 4 B38 4 c 6 5000 shortage 35,000 200 $700 400 5,300 53,800 838,600 157,950 780,650 or 761,650 (NSF checks may be treated as deduction from receipts) 625,700 or 606,700 (NSF checks may be treated as deduction from receipts) 3,000 82,000 145,600 71,950 1,828,212 imprest system ~ deposit of collections intact to the bank segregation of duties of custodial function and bookkeeping function 125250 194,550 255,700 35,000 ‘SUPPORTING COMPUTATIONS Total per court Cashie’s accountability Petty cash fund P ‘0.500 Postage stamps 20 Otter colections 350 Cash shortage Corea pety cash fund = 118660 +3450 Total pe count Castie’s aocountatilty Paty cash fund P 9.000 Check payable to Mereao 3.50 Bithday gt contibuton 4500 Unused postage 500 Cash shortage Conect petty cash fund = P17,000 + P18000 Total percount Casners accourtebily Paty cash fund 1500000 Unceposted collections Bso0.00 Cash shortage P 10,761.80 11,070 308.40 P 53.500 58,500 P 5.000 35,000 Pig 7006 Bils and cans P6400 Customers’ checks 4800 Undeposted callectons 8500, Petty cash fund, per uct esr Chapter 3 Cash D7 Total percount (exchide the unsigned pay envelope with no contents) P 19.600 Cashier's accountabilly Paty cash fund P1500 Unreleased payrol Sn Cash shortage 8 Bils and coins Vouchers wih Jenvary 2013 dates Employee's oneok dated December 2012 Total cash items a5 of December 31 Unreleased payrof Correat petty cash balance on December 3t E Bark Books 9 Unadjusted balances Paso.o0 © P750,800 Bank credt memo +80,000 Bank debt memo (4.500) Outstanding checks (120,400) (Check of Kin 21,000 Error in recording check (6.00) Cashon hens 88,000 Balances before cash shortage Pé96,600 682,400 ‘Cesh shortage eee 10. Cash balance, per aust PRESEOO _—_P838 600 Unadjusted balances per bank Outstanding checks “january 31 (65000) (65,009) February 28 43.000 (49,000) Deposits in tanst “lenuary 31 54.500 (64.500) February 28 44700 44700 ‘Aglstes balances, 3000 720,550 aw, 757 50, uay 31 Recents Dsbursements Feo. 28 Unacjustes balances, per books (02.280) 808,380 630300 32.800 Bank ceat memo January 123800 (123.500) Febuary 96800 98 00 Bonk senice charges January (3250) 3.250) February 4660 (4050) NSF checks retumed by bank January (25000) (25,000) Febuary 19.000 (19,000) Adjusted balances 3000 THD, 825,700 *57,950Chapter 3 Cash 6 Devenber Dsbusements Pertarmk —— Perbooks, 15. Unaqusted dstursements 195000 P1904 Outsanding checks, Noveriber 30, £20,000 Customers’ NSF checks November 000) December 12,000 Bank senvce charges November 24t0) December 3000 Balances before cutstanting checks, December 31 Pr0s000 Pre. ON 105,000 Outsanding checks, December 31 P2000 H. sine Receipts Pertark ——Perbooks 16 Unadjusted revebts in June Psto000 420,000 Colleaions mace dred by bank in May (30,300) Depostsin ransit May 31 (15.000 Leans granted by bank in June 50.000 Enorin recording depost 00 Bdances before deposits n tenst, June 30 PHSS00 POON 225,000 Deposts in vanst, June 30 P1450 Ll Pertark ——Perbooks Unadjusted balances 1588000 1,800,162 Creeit mero for cotections by bank 10.000 Ouistarding checks 06229) Undeposted recepts 378441 Balences before shortage Pige22 Pt 900,182 17 Ammeunt stolen %8. Actual cash existing Fi Fi e8 7 19 and 2). Features olintemal ental missing Impres system and segegation d dues J Pertam —Perbooks Unagustedbatences 360.000 F283 500 Eroneaus tank credit (25000 22 Outstanding checks (246 750 16,000 37.200), (194560), Unreeasedohecks 15,000 Postiated checcs Seued and recorded as disbursements 37.200 Customers posidated check (60,000) 21. Deposits in transt (175.260 ~50,000) T2525 Note collected ty bank 15,000 Belarces before cesh shortage P5670) 310.700 24. Cash shertege “($5.000) 23 Actual cash exiting PaSE7O. 255.700,