1. The statement of financial position of Kwarta Company shows cash of 330,820.

The following items were

found to comprise this total amount:

Checking account in Metrobank (outstanding checks as of

year-end totaled 15,200) 105,200.00
Savings account is Far East bank 30,800.00
Petty cash fund (including expense receipts for 250) 1,500.00
Cash on hand (undeposited sales receipts) 4,200.00
Sinking fund cash 35,000.00
Cash in foreign bank (in equivalent pesos) 65,000.00
Customers' check on hand
Traveler's Check 14,000.00
Manager's Check 23,120.00
Short term treasury bills 52,000.00

What is the correct amount of cash?

2. Kuton Company’s checkbook balance at December 31, 2012 was 180,000. In addition, Kuton held the
following items in its safe on that date:
 Check payable to Kuton dated January 2, 2013 in payment of a sale made in December 2012,
included in December 31 checkbook balance- 65,000.
 Check payable to Kuton deposited December 15, but returned by the bank DAIF- 20,000.
 Check drawn on Kuton’s account, payable to a vendor, dated and recorded on December 30 but
not yet mailed to payee as of December 31, 2012- 15,000.

What is the correct cash balance of the company?

3. Green Company’s general ledger showed a balance of 2,205,600 in its cash account on December 31,
2012. Included in this balance are the following items:

DAIF checks returned by bank 20,000.00

Savings account 750,000.00
IOUs 1,200.00
Postage stamps 600.00
Bank draft 10,000.00
Cash on hand 30,000.00
Cash sinking fund 500,000.00
Customer's checks dated January 2013 5,400.00
Travel advances 4,000.00
Traveler's Checks 8,000.00

What is the correct balance of cash?

1. Leona Company had the following account balances on December 31, 2011:
Cash in Bank- current account 4,000,000.00
Cash in Bank- payroll account 1,500,000.00
Cash on Hand 500,000.00
Cash in Bank- restricted for equipment acquisition on 2012 1,000,000.00
Treasury bill purchased November 1, 2011 to mature on February 1, 2012 2,000,000.00

The cash on hand includes a P 200,000 customer check payable to Leona Company, dated January 15, 2012.
What should be reported as “cash and cash equivalents” on December 31, 2011?
a. P 9,000,000 c. P 8,800,000
b. P 7,800,000 d. P 5,800,000

2. On December 31, 2011, Tigres Company had the following cash balances:
Cash in Bank 5,000,000.00
 Petty Cash Fund 50,000.00
Time Deposit, one year, due March 1, 2012 1,000,000.00
Saving Deposit 500,000.00

A check of P 100,000 dated January 15, 2012 in payment of accounts payable was recorded and mailed on
December 28, 2011. How much “cash and cash equivalents” should be reported on December 31, 2011?
a. P 6,550,000 c. P 5,650,000
b. P 6,650,000 d. P 5,450,000

3. The “cash” account in Jen Company’s ledger on December 31, 2011 showed a balance of P 5,250,000
which included the following:
Petty Cash Fund 50,000.00
Undeposited receipts, including a post-dated customer check of
P200,000 1,300,000.00
Cash in Bank 2,500,000.00
Cash in Sinking Fund 1,000,000.00
Expenses paid out of collections, not yet recorded 250,000.00
IOUs signed by employees 150,000.00
5,250,000.00

At what amount should Jen Company report as “cash” in the December 31, 2011 statement of financial
position?
a. P 3,650,000 c. P 4,650,000
b. P 3,850,000 d. P 4,050,000

4. Enipr Company had the following account balances at December 31, 2011:
Cash on Hand and in Bank 5,000,000.00
Cash restricted for bond payable due on June 30, 2013 2,000,000.00
Time Deposit 6,000,000.00
Saving deposit set aside for dividend payable on June 30, 2012 1,000,000.00

In the December 31, 2011 statement of financial position, what total amount should be reported as “cash and
cash equivalents”?
a. P 12,000,000 c. P 11,000,000
b. P 14,000,000 d. P 13,000,000

5. On April 1, Jennifer Company established an imprest system petty cash fund for P 10,000 by writing a check
drawn against the general checking account. On April 30, the fund contained the following:
Currency and coins 3,000.00
Receipts for office supplies 4,000.00
Receipts for postage still unused 2,000.00
Receipts for transportation 600.00

On April 30, the entity wrote a check to replenish the fund. What is the amount of replenishment under the
imprest fund system?
a. P 10,000 c. P 7,000
b. P 6,600 d. P 3,000

6. During the audit of Maganda Company on December 31, 2011, the following data are gathered:
Balance per book 4,000,000.00
Bank charges 10,000.00
Outstanding checks 950,000.00
Deposit in transit 1,200,000.00
Customer note collected by bank 1,500,000.00
Interest on customer note 60,000.00
Customer check returned NSF 250,000.00
Depositor's note charged to account 1,000,000.00

The correct cash balance amounts to ____.

a. P 4,300,000 c. P 4,250,000
b. P 5,300,000 d. P 4,000,000