Chapter 3 Cash MULTIPLE CHOICE Lo 26 30 ca Se 7¢ BC a6 18 2 136 1 Problem ¢ (a) Aut adjustments Cash Equivalents 3000000 Cash 3.000.000 One Noscurent Financial Assets 3.200000 Cash 3.200.000 cash 36.000 Accued Salares Expense 35000 Otne Nowcurent Financial Assets 9300-000 Cash 900.000 Miscellaneous Exoenses 6800 Aavances to Employees 1200 ‘Cash (Petty Cash Funo) 8.000 cash 5,300 Acces Utities Expense 5300 Advances to Employees 1200 ‘Cash (Petty Cash Fund) 8.000 Cash 5300 Accrued Usities Expense 5.300 Accounts Receivable 25,000 cast 28,000 (o) Cash and Cash Equivalents ‘Savings account with Metrobank 1,500,000 ‘Checking account with Metrobank 800,000 + 5,300 £805,300 Certificates of depost 3,000,000, Payroffind 1,200,000 + 35.000 11235,000 Taxfund $500,000, Patty cash fund 12,000 ‘Undeposted collections 85,000 - 25.000 =< 69.000 ‘Correct cash and cash equivalents Pram Problem 2 (Sta. Monica, Inc.) Expenses, 10.500 Petty Cash Fund 10,800 Correct balance of petty cash fund = F20,000 ~ P10,500 = P9,500‘Chapter 3 Cash Problem 3 (Victor Company) (2) Corect amount of petty cash fund Currencies and coins P6400 (b) Per count Currencies and coins P6400 Paid petty cash vouchers 2250 Employee's NSF check 1,200 Wesding git contribution (with bils) 1500 Total per count P11,380 Cashiers eocountabity. Petty cash fund, per ledger 10,000 Wedding gif contribution 4 4 Cash shortage bap (0) Audit Agjusting Entries, Delivery Expense 250 Office Sunplies Expense 760 Employees Medicine 240 Trensportation Expense 400 Repairs end Maintenance 400 Recewvables from Employees 2.000 Cash Shortage (or Misc. Expenses or Receivables fr Employees) 150 Petty Cash Fund 3.600 Problem 4 (Rainbow Corporation) (2) Total per court 35000 Cashier's Accountability Petty Cash Fund, per ledger Unused postage stamos Unused office suoplies Wedding git contribution 09 _39.000 Cash shortage eso 1B) Telephone Expense 1.800 Water Expense: 11800 Office Sugoles Expense (3.700 — 1.200) 2500 Postage Exoense (2,600 - 1.800) 000 Prepaid Expenses (7,200 + # 800) 3.000 Recelvables from Employees (3,900 + 4,000) 7300 Petty Cash Fund 17,500 () ——_Comect amaunt of petty cash fund = 35,000 — P17 500 = 17.500 Cash tems in the petty cash fund Bils and Coins P2500 Replensirnert check sono TotalChapter 3 Cash Problem 5 Bilis and Coins (show details of denomination and pieces per denomination) Checks: Date Maker Amount 12-28-12 Urquicia, employee P 3000.00 12282 Sta Maria. emgloyee 50000 123012 LChua customer 2500.00 01-00-73 A Bobadila, customer 320000 01-1273 C Geman employes (check received 12-28-12) —1500.00 Vouchers: Date Voucher No. Particulars Amount 124312 151 Freight out P 500.00 1226-12 183 ‘Supplies 300.00 122912184 Freghtin 39820 129612 189—-Freght on cabinet 741-10 01-0213 O01 Freghtin 2st7 fous. 1221-12 S Dechavez Unused office sipntes Total per count Cashier's accountability: Petty cash fund, per ledger 15,000.00 Unremited cash sales Inv. #718 — December 30 1,000.40 Inv. #128 December 31 2/5000, fnv.# 133 January 2 tzonn0 8 70040 Unused office supplies 40.00 Cash shortage Audit Adusting Enties: Receivables from Employees (1,500.00 + 300.00) 1800 Freight out 500 Supplies Expense (100-40) 280 Prepaid Expenses 40 Furniture and Equipment 744.10 Freight in 304.20 Gash Shontage (Receivable trom Employees) 0290 Petty Cash Fund Cash inBank (1,000.40 + 2,500.00) 3.50040 Sas Conect belence of petty cash fund (F15,000 - 4.538 20} Fane te} Composed of the following cash items at December 31, 2008 Bils end coins Pe717.50 Checks dated December 7,000.00 Petty cash vouchers dated January (undisbursed as ‘of December 31) —2s470 Total cash items as of December 31 F13.96220 Unremitied cash sales as of December 31 (4.00040 +2500) _2.500.40) Petty cash fund, per audt, Deverber 31 Bisse P6717.50 1170000 2,180.00. 300.00 —_40.00 20.937 50 4598.20 380040Chapter 3 Cash Problem 6 (Da King Company) Bils and coins 500x1 100x8 0x3 10x4 5x2 1x3) Checks: 2a M. Roxas, enployee sage J. Madrigal Company ovnat3 J. Estrada Junk Shop 0115113 F. Chavez, employee (received 1227/12) Pid petty cash vouchers: 1216/12 Vo.No. 145. Freight on goods bought 12726112 164 Postage 1029" 165. Trensportalon of messenger oy Des 166 Repars, completed Dec. 29, 2012 Ed Gi, employee Postage stamps 10 pos xP12 Total per count Castie’s accountabilty Petty cash fund Unremited callectons, 1280/12 Refund for merchandise retumed P1500 (01/06/13 Sale of junk and scrap materials 2450 Unused postage stamps Cash shortage Adgusting entres Receivable from Employees (1,800 + 1,200 + shortage of 1,247) Freight vost of Goods Sold Traneporation Expense Postage Expense (200 — 120) Prepaid Expenses Petty Cash Fund Repairs and Maintenance Accrued Exoenses (ash in Bank ‘Purchase Retums end Afowences /Cost of Goods Sold Correct Petty Cash Fund = P10,000 - P4.997 = Cash items as of December 31 Bils and coins ‘Checks dated December Petty cash voucher dated January 2013 ‘Cash refund for purchase retums Correct petty cash fund balance P 500 800 150 40 10 3. P 1803 2,000 1500 2450 1800 (7,750 500 200 50 1800 2280 1,200 120 P 12823 10,000 3.950 120 14,070, 7 42e7 500 50 0 120 4997 4,500 1,500 1,500 1,800Chapter 3 Cash Problem 7 (Cisco Systems, Inc.) (1) Bark reconciation: ‘Outstanding crocs, Undeposited receipts Error in reconing check issued fe rental ‘Bank charge for payment of loan and iirest Bank service oa iL of another com ‘Customer's DAIF check (2) Adpsting erty: Notes Payatle - Bank hees Expense Bark Senice Cares Accounts Recenatle ert Expense Cash n Bank (3) Gash end cash equivdenss: Pelty cash fund (Cash in bank ‘Trezsuy bls maturing in 2 morths “Tota cash and cash equivalents Problem 8 (Sunshine Corporation) 1 Unaiusted Botances Cutstanting checks Undeposted callections Customers note collected by bank Bank sevice charge ‘Adjustes belances Cash shortage Cash balance, Deverber 31, ner audit 2 Understated book balance 486,000 — 486,000, vested bank balance 424,000 ~ 454,400 Omited oustanding checks 183 198 Understated outstanding checks 2,000 25000 9.000~ 900 25,000~ 15,000 vested undeposted colectons Omission of bark cect mento ‘Total cash shortage Per bank P1632 (40,000 50500 49.000 5000 1400 12500 180) 91,100 P 20,000 4.05212 —fnao0 Bigt5202 Pe Bank Pec Books 424,000, 465,000 (113,000), 48.000 19.000 4,500) 359,000 P42 £00 12, F590 359.000 P9000 30,400 4,500 12.500 27,000 8,100 0.000 3.000 19.000, Pi23.500Chapter 3 Cash 3. Undeposted collections December 31 Colections, January 1-15 ‘Total amount avaiable for depost ‘Amount deposited, per deposit sips Undeposted collections January 1 Cash on hand, January 15 ‘Adstional cash shortage in January 4 Adjusting ties Bank Charges Receivable from Employees (or Loss Cesh Notes Reveivatle Problem 9 (Pamela Manufacturing Company) Unacusted bank balance Outstanding checks November 30 December 31 Deposits in tanst November 30 December3? ‘Check of Pamglona Company Adusted Balances Balance per books Error in recording check no. 369 Bank service charge November December NSF check retumed in November Interest charged by the bank Adjusted Balances Audt adustng entries: Casitin Bank Office Furniture Bank Service Charge Cash in Bark Interest Expense, Cashin Bank P 48,000 199.000 247,000 (110,000) 137,000 52.000) P 85,000 1,500 123,500 108,000 19.000 Nov. 30 Receipts Disbursements. Dec. 31 876,750 9,153,760 8.526.550 1,503,960 (254,720) (254720) 335,610 (335.610) 184.220 (184,220) 209.180 209.180 5,830. T6250 31870 3 7383.360 Nov. 30 Receipts Disbursements Dec. 31 25,50 9,198,720 8613010 1,407,660 2.700 2.700 (3.500) (3500) 2,280, (2.250) (34.900) (34900) z TEE 250, 3168720 360: 610. 7,383,360 2,700 2,700 2.280 2.250 24,750 24,750Chapter 3 Cash Problem 10 (Golden Bells Company) Unadjusted bank balance Deposits in transit November 30 December3i Oustandig checes November 30 December 3 Erroneous bank charges November 30 Deoemiber 31 Erroneous bank cet November 30 December 31 Adjusted balances Unadjusted book balances (squeezed) NSF checks returned by bank November 30 December 31 Bank senice chages November December Note collected bybank November December Adjusted balances Accounts Receivable Cashin Bank Bank Sewvice Oharges / Mscalaneous Expenses Cashin Bank Cash in Bank Notes Receivable Now 30 Receipts Disbursements Dec. 31 2500000 2,300,000 1700000 3,100,000 58000 (68,000) 47,000 47,000 (97,00) (7.000) 48,000 (46,000) 25000 (25,000) (31.000) 37.000 (48,000) (48,000) (60,000 50,00 247900 ___2.2"4 000 567000 3.068, (00 Now 30 Receipts Disbursements Dec. 31 2300000 2,208,000 4543000 3047.00 (18000) (1,000) B00 (25,000) (10,000) (10,000) 8,000 (18,000) 76000 (76,000) 28000 16,000 4.000 25.000 18,000 84,000Chapter 3 Cash Problem 14 (Starr Company) —— at ___ Apr. 30 Receipts Disb May 31 Unadjusted bank bdarce 470.360 883.200 120,600 32,960 Deposits in vanst Apr 30 230 29.380 May 31 (squeezed) 40,560 40560 Outstanding checks ‘Api 30 (144800) (44800) May 31 4 a Adjustedbalences 35150. S100 1308-400 3 Nay 434 Ax 0 Recepts Dis May31 Unadjusted book balances (squeezed) 363.04 654.400 621.240" 386200 DAF cheoks retumed by bark Agr 30 (2000) (000) May31 Bank service charges Agr (120) (120) May 20 £280) (Check issued by the easier to nimselt Bae 00 C00) Proceeds of oan grated by bank May 240,000 240,000 Adusiedbaances SSD. 64400108400 os 621,240 = 619,120 + 8,000 + 120 @) 1 P63 010 2 P4056) 3 696.000 4 P(60,080) (0) Adjusting enties: Bark Sevice Charges 280 Cash in Bank 280 Loss from TheftReceivate ftom Officers 696,000 Cash in Bank 636,000 Cashin Bank 240,000 ‘Notes Payable -Bank 240,000Chapter 3 Cash Problem 12 (Rocky Mountain High) Nov.20 Receipts Disbursements Dec. 6 Unagused bark balance Peg3e00 —PSB5,600 P53, 600 Deposits in transit November 30 Desember3' (102,000~ 12,000) $0,000 90.000 Payment from collections +2000 2000 Outsending checks November 30 Tez] Tez] Devember 31 =62000 + 105 000 + 30,000 + 0,000 237,000 __(237,000) ‘Adjusted balances, 150 506,50 793,400 630,700 Nov.30 Receipts Disbursements Dec. 6 ‘Unarjusted book balances (squeezed) 921,500 506 600 571.400 #58700 Bank charges in December (200000 + 28,000) 228,000 226,00) ‘Adjusted balances, 921,500 506,600 400 630,700 sasuers (2) P4890 (bo) P116200 (Qo P921500 (8) 830700 Problem 13 1_AD 266 3 BF 4 EH 0. SN 78. Problem 14 (Cortronics Company) PetyCash Purchasing Cash in Bark Tota Fund Fund Baances, per ledger P +5000 P3500 P134.500 P1e4 500 Disbursedin 2012 600) (20,000) (25,000) Bank credt memo 58.000 58.000 Batnces peraudt P00 PHB 000 722500 P26 5D. Adusing cies Gasaiine Excense 4500 \Miscetaneous Exoenses 500 Transportation Expense 1,000 Petty Cash Fund 600 Purchases or inventory 20,000 Purchasing Fund 20,000 Cashin Bank $8,000 Notes Recevatie $8,000Chapter 3 Cash Problem 15 (Fortune Company) (a) Audit Adjustments Sales 205,200 Cash 265,200 Cash 19,300 Uiities Payable 19,300 ‘Accounts Receivable 57.800 Cash 57.500 Accounts Receivable 32.500 ash 2,500 Noenty, dividend furd is part ofcash. Accounts Receivable 3500 ash 3500 Cash Shatage’ Receivable from Emoloyeee 50 Cash 550 Noenty, payral funds pan of cash. Cath Shatage / Receivable from Employees 200 ‘Miscellaneous Exoenses 5200 Cash 5800 Cash 12,500 Miscellaneous Income 13,500 {b) Correct amount of cash ‘Cash balance, per ledger 1,640.00 Cash sales of 2013 (285200) Unreleased check for utlites 19,300 Postdated chexks received (87800) ‘Customers’ NSF checks (32500) Stale check (3500) Shortage In the change fund (550) 202 vouchers in petty cash fund ‘Cash shortage in the patty cash fund Unrecorded depostts (sale of scrap) Cash balance. per audt ‘Supply the Answers [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 4,608.60Chapter 3 Cash 2. a 2. B, a A 4 2 B38 4 5 5000 shortage 35,000 200 5,700 400 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 92.000 145,600 71,950 1.828.212 imprest system - deposit of collections intact to the bank segregation of duties of custodial function and bookkeeping function 125.250 194550 255,700 55,000 ‘SUPPORTING CONPUTATIONS Total ger court P 10,761.80 Castie’s accountaitty Petty cash fund P 10.500 Postage sams 20 Otter colectons 350 11,070 Cash shortage P308.40 Corect petty cash fund = 1,186.60 +3,450 Total per count Castie’s ocountatilty Pety cash fund P 9.000 Chedk payable to Meron 3.500 Bithday gt contribution 41500 Unused postage 500 Cash shotage Correct petty cash fund = P17,000 + P1800 Total per count Cashers accountability Petty cash fund 15.0000 Undepostted collections 500.00 Cash shortage P53.500 58,500 P 5.000 35,000 Pig 700 20,500 P006. Bils and cans P6400 Customers’ checks 4900 Undeposted collections 5500) Pety cash fund. perauct P5700 Chapter 3 Cash D7. Total per count (exchide the unsigned pay envelope with no conterts) P1960 Cashiers acountabiity Patty cash fund P1500 Unreleased payrol 600 20,000 Cash shortage P 400 8 Bilsand cons P7300 Vouchers wi January 207% dates 200 Employee's check dated December 2012 2800 Total cash items as of Deceniber 31 10,300 Unreleased payrol (5,000) Correct petty cash balance on December 3t P5300 E Bank Books 9. Unadjusted balances Pes0.000 750,500 Bank credit memo 150,000 Bank debt memo (4.500) Outstanding checks (120,400) Check of Kin 21,000 Error in recaring check 600) Cash on hand 88,000 Balances before cash shortage PB38.600 —_—P682400 ‘Cash shortage 53,800) 10. Cash balance, per aust PGB600 F638, 600 F “nua s1____ Receipts Disbursements Feo 26 Unadjusted balances per bank +3500 790,450 647 700 156 260 Outstanding checks “january 31 (65000) (65,009) February 28 43.000 (49,000) Deposits in vanst “lenwary 31 54,500 (64.500) February 28 44700 44700 Adustes balanoes 3000) 720850 S570, 757 50, amay 31 Receiots Dsbursements Fe 28 Unadjusted balances, per books (02280) 808 380 303300 82.800 Bank gedit memo January 123800 (123.500) February 96800 98800 Bank senice charges January (3250) 250) Febuary 4650 (4650) NSF cheoks retumed by bank January (25000) (25,000) February 19,000, (19,000) Adjusted balances 3000 7085, 25,700 $57,950Chapter 3 Cash 6 6 1. 8. 19, 2 a 24 15. Unadusied dsburserents Outstanding checks, November 30 Customers’ NSF checks November December Bank senice charges November December Balances before cuslanding checks, December 31 Outstanding checks, December 31 Unadlusted recepis in June Callecions mace dredty by tankin May Depostsin ransit May 31 Loans granted by bank in June Erorin recording depost Baences before depesits in tenst, June 30 Deposts in tanst, June 30 Unadjusted balances Credit memo for otections by bank Ouistarding cheats Undeposited recets Balances before shortage Amaunt stelen Actual cash existing Unagustedbalances Eroneaus tank credit Outstanding checks (248,750 16,000 - 37.200) Unreeasedchecks Postdated checks Ssuedl and recorded as disbursements Customers postdated check Deposits in rans (175,250 ~50,000) Nike collected by bari Balaroes before cash shortage Cash shortage ‘Adtual cash exsting December Disbusements Per bank Per books 195000 190,400 0.000 (6.000) 2.000 2400) 3,000 105000 ‘P17,000 ————_—_16.0 PE2 000 dhe Receits Pertenk —Perbools P310000 420,000 (30,300) (15,000, £0.00 200 P5000 x PHS 600 Pertare ——_Perbools 1,558 000 1,890,162. 10000 (108228) T9441 P1828212 Pigezie PA 826.712 and20. Features ofinternal contol missing Impres system and segegation df dues Pertare —-erboole as0.000, 93.600 (25.000) (194580) 15,000 37.000 (60,000) T2525 15,000 P2ss700 310.700 (55,000) PRSE70 255.700,