ST.

ANTHONY’S COLLEGE
Business Education Department
San Jose de Buenavista, 5700 Antique
Tel. No. (036) 5409238; 5400898; 5409971 Tel. No.: (036) 5409196
Website: www.sac.edu.ph Email: info@sac.edu.ph; bused@sac.edu.ph
In SAC, we care!

Worksheet No. 1 Prepared by: Ma. Isabel S. Abellon, CPA

Direction: You can EDIT THIS FILE or you can answer in a YELLOW PAD or a CLEAN BOND PAPER. Your
Worksheet No.1 may be in image, pdf or word format. Submit your work on or before due date
assigned.

Names: Program, Year & Section:

Problem 1: La Vida Lena Company

La Vida Lena Company had the following balances on December 31,2020:

Cash in bank- current account 5,000,000

Cash in bank - payroll account 1,000,000

Cash on hand 500,000
Cash in bank - restricted account for building construction 3,000,000
expected to be disbursed in 2021
Time deposit, purchased December 15, 2020 and 2,000,000
due March 15, 2021

The cash on hand included a P200,000 check payable to La Vida Lena, dated January 15, 2021.

What total amount should be reported as cash and cash equivalents on December 31, 2020? (Show your
solution – 5 points)
Problem 2: Lofi Company
At year-end, Lofi Company reported cash and cash equivalents which comprised the following:
Cash on hand 500,000
Demand deposit 4,000,000
Certificate of deposit 2,000,000
Postdated customer check 300,000
Petty cash fund 50,000
Traveler's check 200,000
Manager's check 100,000
Money order 150,000

What total amount should be reported as "cash" at year-end? (Show your solution – 5 points)
Problem 3: Shein Company
Shein Company reported petty cash fund which comprised the following:

Coins and currency 3,300

Paid vouchers:
Transportation 600
Gasoline 400
Office supplies 500
Postage stamps 300
Due from employees 1,200 3,000
Manager's check returned by bank marked "NSF" 1,000
Check drawn by the entity to the order
of petty cash custodian 2,700

What is the correct amount of petty cash fund for statement presentation purposes? (Show your
solution – 5 points)
Problem 4: Shopee
Shopee Company had the following account balances on December 31,2020:

Petty cash fund 50,000

Cash in bank - current account 4,000,000
Cash in bank - payroll account 1,200,0000
Cash in bank sinking fund 2,000,000
Cash on hand 500,000
Cash in bank – restricted account for plant 1,500,000
addition and expected to be disbursed in 2021
Treasury bills 1,000,000

The petty cash fund included unreplenished December 2020 petty cash expense vouchers P5,000 and
employee IOU P5,000.)

The cash on hand included a P100,000 customer check payable to Shopee dated January 15, 2021.

In exchange for a guaranteed line of credit, the entity has agreed to maintain a minimum balance of
P200,000) in the unrestricted current bank account.

The sinking fund is set aside to settle a bond payable that is due on June 30, 2021.

What total amount should be reported as cash and cash equivalents on December 31,2020? (Show
Solution – 10 points)
Problem 5: Lazada Company
Lazada Company reported checkbook balance on December 31,2020 at P4,000,000.

 A customer check amounting to P200,000 dated January 2,2021 was included in the December
31, 2020 checkbook balance.
 Another customer check for P500,000 deposited on December 22, 2020 was included in the
checkbook balance but returned by the bank for insufficiency of fund. This check was
redeposited on December 26, 2020 and cleared two days later.
 A P400,000 check payable to supplier dated and recorded on December 30, 2020 was mailed on
January 16,2021.
 A petty cash fund of P50,000 comprised the following on December 31,2020:
Coins and currencies 5,000
Petty cash vouchers 43,000
Return value of 20 cases of soft
drinks 2,000
50,000

 A check of P43,000 was drawn on December 31,2020 payable to Petty Cash.

What total amount should be reported as "cash" on December 31,2020? (Show your solution – 10
points)
Problem 6: Zalora Company
On December 31, 2016, Zalora Company reported cash account balance per ledger of P3,600,000 which
included the following:

Cash in bank - demand deposit 1,500,000

Time deposit - 30 days 500,000
NSF check of customer 20,000
Money market placement due on June 30, 2021 1,000,000
Saving deposit 50,000
IOU from an employee 30,000
Pension fund 400,000
Petty cash fund 10,000
Customer check dated January 31, 2021 60,000
Customer check outstanding for 18 months 30,000
3,600,000

 Check of P100,000 in payment of accounts payable was dated and recorded on December 31,
2020 but mailed to creditors on January 15, 2021.
 Check of P50,000 dated January 31, 2021 in payment of accounts payable was recorded and
mailed December 31,2020.
 The cash receipts journal was held open until January 15, 2021, during which time P200,000 was
collected and recorded on December 31, 2020.

What total amount should be reported as cash and cash equivalents on December 31, 2020? (Show your
solution – 10 points)
Problem 7: Dwight Company

On June 30, 2021, the bank statement of Dwight Company had an ending balance of P3,735,000 and
Cash in bank balance per book is 3,455,000. The following data were assembled in the course of
reconciling the bank balance:

 The bank erroneously credited Dwight Company for P21,000 on June 22.
 During the month, the bank charged back NSF checks amounting to P23,000 of which P8,000
had been redeposited by June 25.
 Collection for June 30 totaling P103,000 was deposited the following month.
 Checks outstanding on June 30 amounted to P302,000. Note collected by the bank for
Bougainvilla Company was P80,000 and the corresponding bank charge was P5,000.

Required: Prepare Bank Reconciliation (Book and Bank) - 10 points

Problem 8: Ramos Company

Ramos Company provided the following data for the month of January of the current year:
Balance per book, January 31 3,130,000
Balance per bank statement, January 31 3,500,000
Collections on January 31 but undeposited 550,000
NSF check received from a customer returned by the bank
50,000
on February 5 with the January bank statement
Checks outstanding on January 31 650,000
Bank debit memo for safety deposit box rental not recorded
5,000
by depositor
A creditor's check for P30,000 was incorrectly recorded in
300,000
the depositor's book as
A customer's check for P200,000 was recorded by the
20,000
depositor as
The depositor neglected to make an entry in its books for a
125,000
check drawn in payment of an account payable

Required: Prepare bank reconciliation statement (Book and Bank) - 10 points