CHAPTER 7
Problem 7-1
Requirement 1
a. Accounts receivable 200,000
Cash in bank 200,000
b. Cash in bank 250,000
Accounts payable 250,000
c. Cash in bank 100,000
Accounts payable 100,000
d. Accounts receivable 450,000
Cash 450,000
Requirement 2
Cash in bank per book 3,000,000
Customer check outstanding for 18 months (
200,000)
Undelivered check
250,000
Postdated check delivered 100,000
Collection on January 2017 recorded on December 31, 2016 cC
450,000)
Adjusted cash in bank
2,700,000
Time deposit - 30 days 1,000,000
Petty cash fund —.20,000
Total cash and cash equivalent 3,220,000
Requirement 3
The money market placement of P2,000,000 due on June 30, 2017 should be
separately shown as current asset. The sinking fund of P1,500,000 is presented
as noncurrent asset.
Problem 7-2
Requirement 1
a. Accounts receivable 150,000
Cash on hand 150,000b. Expenses
Receivable from employee
Petty cash fund
15,000
Requirement 2
Cash on hand
Postdated check
Adjusted cash on hand
Petty cash fund
Unreplenished petty cash expenses
(10,000)
Postdated employee check
Adjusted petty cash
Cash on hand
Petty cash fund
Security Bank current account
PNB current account
Bond sinking fund
2,500,000)
Total cash and cash equivalents
6,885,000
Requirement 3
10,000
5,000
1,000,000
(150,000)
850,000
50,000
(3,000)
35,000
850,000
35,000
2,000,000
1,500,000
*The BSP 120-day treasury bill of P3,000,000 is separately shown as current asset.
“The overdraft in BDO current account of P200,000 is shown as current liability.
“The BPI Time deposit of P2,000,000 is shown as noncurrent investment because
itis
restricted for land acquisition.
Problem 7-3
Requirement 1
a. Accounts receivable (100,000 + 150,000)
Cash on hand
b. Advances to employees
Cash short or over
Petty cash fund
15,000
. Cash in bank (200,000 + 300,000)
Accounts payable
Requirement 2
Cash on hand
NSF customer check
Postdated customer check
250,000
250,000
10,000
5,000
500,000
500,000
1,000,000
( 100,000)
(150,000)Adjusted on hand
750,000
Currency and coins
Check drawn payable to petty cashier
Adjusted petty cash
Cash in bank
Undelivered company check
Postdated company check delivered
300,000
Adjusted cash in bank
4,500,000
Cash on hand
Petty cash fund
Cash in bank
Saving deposit
2,000,000
Total cash
Problem 7-4
Requirement 1
Cash on hand
NSF customer check
Postdated customer check
Adjusted cash on hand
Petty cash fund:
Currency and coins
Philippine Bank current account
5,000,000
Undelivered company check
Postdated company check delivered
45,000
Adjusted balance
Cash on hand
Petty cash fund
Philippine Bank current
ity Bank current account No. |
City Bank current account No. 2
Asia Bank saving deposit
250,000
Asia Bank time deposit
Total cash and cash equivalent
Requirement 2
1, Accounts receivable
Cash on hand
50,000
¢
2,000
33,000
35,000
4,000,000
200,000
750,000
35,000
4,500,000
7,285,000
200,000
(35,000)
(15,000)
150,000
5,000
25,000
5,070,000
150,000
5,000
5,070,000
4,000,000
100,000)
-2,000,000
11,375,000
50,000