3 4 ReSA ‘The Review Schoo! of Accountancy ® Tel. Nos. 734-3989 / 735-9807 inancial Accounting and Reporting C. Uberita/ C. EspeniilliyG. Macariola Cash & Cash jents Lapton Company shows the following account balances in their financial records as of December 31, 2018 ‘Checking account at Morgan Bank, P(20,000),Checking account at Land Bank, PS00,000; Payroll account ~ National bank, P100,000; Foreign bank account-restricted , P 750,000, Postage stamps, P 22.000, Employees’ ‘postdated checks, P 30,000, 10 U. trom president's brother, P75,000; Traveler's check PS0.000, No-sufficient funds check, P18,000, Petty cash fund (P16,000 in carreney & expenses. receipts for PR4,000), P100,000 and ‘Cashier's checks, P36,000 ‘What 1s the correct cash balance to be reported in the balance sheet of Lipton Company on Dec. 31, 2018? a. 582,000 © P702,000 b P686.000 4. P704,000 The cash account in the current asset section of the balance sheet for Heater Company showed a balance of 555,000. It was found to melude the following stems: Petty cash fund (P1,000 is in the form of paid vouchers), PS,000, Checking account balance, per bank statement | (A'P25,000 check is still utstanfing), P25S,000 Undeposited receipts (including. 2 post-dated ‘check for PS,000).P120,000, Currencies and coms avaiting, deposit, PSS,000; Bond sinking fund cash, 100,000; Check drawn by manager. returned by bank marked NSF. P20,000 ‘What isthe correct cash balance for Heater Company's balance sheet? a. P404,000 © PA430,000 b. P429,000 d. 529,000 (On December 31, 2017, Everlasting Company has the following composition of its cash and cash equivalents Demand deposit, P1,500,000; Certificate of deposit-30 days, 500,000, NSF check of customer, 120,000; Money market placement (due date’ June 30, 2018), P1,000,000; Savings deposit in closed bank, P50,000; 10U from an employee, P20,000, Petiy cash fund, P10,000, Customer's check dated January 31. 2017, P60,000; Customer's check outstanding for 18 months, P30,000, 1D Check of P100,006 in payment of accounts payable was recorded on December 31, 2017 but ‘mailed to creditors on January 15, 2018, 2 Check of P50,000 dated January 31, 2018 in payment of accounts payable was not recorded and mailed December 31, 2017. 2 The company uses the calendar year. The cash receipts joumal was held open until January 1°, 2018, during which time, P200,000 was collected and zecorded on December 31, 2017, How much “cash and cash equivalents” should be shown on the December 31, 2017 balance sheet? a PI,910,000 ¢ P2,160.000 bPI,960,000 dd. P2,360,000 The following information is shown in the accounting records of Container Company Saguary | December 31 Cash 186,000 Accounts receivable 201,000 273,000 Merchandise inventory 258,000 234,000, ‘Accounts payable 159,000 P 144,000 Prepaid expense 120,000 108,000 Tota sales and cost of goods sold for 2018 were P2,394.000 (including PS00.000 cash sales) and P1,749,000 respectively. All sales and purchases were made on eredit. Various operating expenses of P321,000 were paid incash, Assume that there were no other pertinent transactions. ‘What is the cash balance on December 31,2018 of Container Company? a. P435,000 &. P758,000 b. 447,000 a. P915.000 3704ReSA Z Financial Accounting & Reporting —___ S. Tuber Company provided the folow ity cata forthe pur we the cash balance pet book Balance per hook : 170,000 Outstanding checks (including certified check of P20,000) 100,000 Deposit in transit 140,000 December NSF checks (of which P10,009 had been re-deposited and cleared ‘on December 27) 30,000 Erroncous credit to Timber's accours,cepucsenting proceeds of loan granted {0 another company a0, 030 Proceeds of noe collected by hank tor Funber, net of service charge of P4,000 150,000, Erroneous bank charge 8.000 ‘A check of PS,000 in payment of account wes recorded by the company as 500 ‘The correct cash balance to be shown in the company's December 31, 2018 statement of financial position is. a P28S,500 © 287,500 1b. P295,300 392,500 6 Im reconciling the Cash in bank of Inner Company with the bank statement balance for the month of November 2018, the following data are summarised Total hook receipts - November 400,000 Bank receipt - Novembsr 900.000 Credit meme for not collection October 60,000 November 75000 Credit memo for November bank oa 10000 Deposit in transit for October 120,000 Erroneous bank credit for November 25,000 Erronces bank credit for October corrected by bash in November 0.000 Eroneous book credit during November 000 Erroneous book credit during Ostobe corrected ts the ‘Company during Novemer 10,000 Debit memo for service charge -Uciober 000 Debit memo for service change | November £000 Erroneous book debit ~ November 20,000 Erroneous bank debit ~ November 65,000 Book disbursement - November «600,000 Bank disbursement ~ November 700,000 Outstanding check - October #0,000 (Question 1. What isthe amount of oustanding checks tor November? a PAD,000 © Po2.000, 90,000 4 P9000 (Question 2: How much isthe deposit in vant for the month of November? a P#0,000 ‘. P120,000, 110,000 Pro.000 ‘Question 4. What ithe adjusted amount of eccipt forthe month of November? a P800;000 PBS,000 b. P825.000 4 900.000 (Question 4 What ithe adjusted amount of disbursement forthe month of November a. P00,000 © Psv7. 000 . P515,000 4. 606,000 7. Rock Company ad te following hank reconeiation at March 31,2018 Balance per bank statement, 0931 465,000 Deposit in transi 100,000 Debit memo. —19,900 110,000 Tonal 575.000 Less, Outstanding checks P 125.000 Credit memo sao _185,000 Balance per book, 03/31 390,000, ‘All reconciliation items at March 31, 2018 cleared through the bank in April. Outstanding checks at April 30, 2018, totaled P75,000, deposits in transit amounted te P 150,000, Credit memo for April-P80,000, debit meme for April P15,000, Erroneous book receipt on April - P19,000 but corrected on the same month, bank receipts for April-P600,000 und a bank disbursement for April P500,000, What is the amount of cash receipts per book in April? bean.0 4. peso on 3704