PROBLEM 7-1 (IAA)

Cash in Bank 3,000,000

Time deposit - 30 days 1,000,000
Money market placement due on June 30, 2017 2,000,000
Saving deposit in closed bank 100,000
Sinking fund for bond payable due on June 30, 2018 1,500,000
Petty cash fund 20,000

REQUIREMENT 1
ADJUSTING ENTRIES
PARTICULARS DEBIT
1 Accounts Receivable 200,000
Cash
Stale Check

Miscellanous Expense 200,000

Cash
Stale Check

2 Cash 250,000
Accounts Payable
Unreleased check

3 Cash 100,000
Accounts Payable
Postdated check

4 Accounts Receivable 450,000

Cash
Collection on Jan. 15, 2017 recorded on Dec. 31, 2016
 REQUIREMENT 2
Cash in Bank
Time deposit - 30 days
Petty Cash Fund
Unreleased check
Postdated Check
Collection of Jan. 15 2017 recorded on Dec. 31, 2016
Stale Check

Cash and Cash Equivalents

CREDIT

200,000 REQUIREMENT 3
* Money market placement was excluded because it is classified as short

* Saving deposit in closed bank was excluded because it is part or reclas

200,000
* Sinking fund for bond payable was exluded because it is classified as lo

250,000

100,000

450,000
 3,000,000
1,000,000
20,000
250,000
100,000
-450,000
-200,000

3,720,000

it is classified as short-term investments as current assetes. It is more than 3 months but less than a year.

use it is part or reclassified as receivable.

use it is classified as long-term investments as noncurrent assets. Its term is more than a year.
than a year.
PROBLEM 7-2 (IAA)
Cash on Hand 1,000,000
Petty cash fund 50,000
Security Bank current account 2,000,000
PNB current account 1,500,000
BDO current account (overdraft) -200,000
BSP treasury bill - 120 days 3,000,000
BPI time deposit - 90 days 2,000,000
Bond sinking fund 2,500,000

REQUIREMENT 1
ADJUSTING ENTRIES
PARTICULARS DEBIT CREDIT
1 Accounts Receivable 150,000
Cash 150,000

2 Expenses 10,000
Petty cash fund 10,000

Accounts Receivable 5,000

Petty cash fund 5,000
REQUIREMENTS 2
Cash on hand 1,000,000
Petty cash fund 50,000
Security bank current account 2,000,000
PNB current account 1,500,000
Bond sinking fund 2,500,000
Postdated check -150,000
Unreplenished check -10,000
Employee check -5,000

Cash and Cash Equivalents 6,885,000

REQUIREMENTS 3
* BDO current account was exluded from cash and cash equivalents because it is over
* BSP treasury bill was exluded because it is short-term or current asset. Its maturity is
* BPI time deposit was excluded because it is restricted for land. It is shown as noncurr
ents because it is overdraft.
t asset. Its maturity is more than three months but less than a year.
t is shown as noncurrent asset.
PROBLEM 7-3 (IAA) REQUIREMENT 2
Cash on hand 1,000,000
Petty cash fund 50,000
Cash in bank 4,000,000
Saving deposit 2,000,000
TOTAL 7,050,000

REQUIREMENT 1
ADJUSTING ENTRIES
PARTICULARS DEBIT CREDIT
1 Accounts Receivable 100,000
Cash on hand 100,000

2 Accounts Receivable 150,000

Cash on hand 150,000

3 Accounts Receivable 10,000

Cash short or over 5,000
Petty cash fund 15,000

4 Cash in bank 200,000

Accounts Payable 200,000

5 Cash in bank 300,000

Accounts Payable 300,000
REQUIREMENT 2
Cash on hand 1,000,000
-100,000
-150,000
750,000

Petty cash fund 50,000

-15,000
35,000

Cash in bank 4,000,000

-200,000
-300,000
3,500,000

Saving deposit 2,000,000

CASH 6,285,000
PROBLEM 7-4 (PHILCPA Adapted)
Cash on hand 200,000
Petty cash fund 20,000
Philippine Bank current account 5,000,000
City Bank current account No.1 4,000,000
City Bank current account No. 2 (overdraft) -100,000
Asia Bank saving account 250,000
Asia Bank time deposit, 90 days 2,000,000

REQUIREMENT 1
Cash on hand 200,000
-35,000
-15,000
150,000

Petty cash fund 20,000

-14,000
6,000

Philippine Bank current account 5,000,000

25,000
45,000
5,070,000

City Bank current account No.1 4,000,000

City Bank current account No. 2 (overdraft) -100,000
3,900,000

Asia Bank saving account 250,000

Asia Bank time deposit, 90 days 2,000,000

Cash and Cash Equivalents 11,376,000

REQUIREMENT 2
ADJUSTING ENTRIES
PARTICULARS DEBIT CREDIT
1 Accounts Receivable 35,000
Cash on hand 35,000

Accounts Receivable 15,000

Cash on hand 15,000

2 Accounts Receivable - officers 2,000

Expenses 12,000
Petty cash fund 14,000

3 Philippine Bank current account 25,000

Accounts Payable 25,000

Philippine Bank current account 45,000

Accounts Payable 45,000
 PROBLEM 7-7
IMPREST FUND SYSTEM FLU
JOURNAL ENTRIES
PARTICULARS DEBIT CREDIT
May 2 Petty cash fund 10,000 May
Cash 10,000
Imprest fund 10,000

29 Postage 1,000
Supplies 3,000
Transportation 2,500
Miscellanous Expense 1,500 June
Cash 8,000

June 30 Supplies 2,000 July

Postage 1,000
Transportation 1,000
Petty cash fund 4,000
Unreplenished expenses

July 15 Petty cash fund 5,000

Supplies 3,500
Postage 1,500
Transportation 1,500
Miscellanous Expense 500
Cash in Bank 12,000
 FLUNCTUATING FUND SYSTEM
JOURNAL ENTRIES
PARTICULARS DEBIT CREDIT
2 Petty cash fund 10,000
Cash 10,000
Petty cash fund 10,000

29 Petty cash fund 8,000

Cash 8,000

30 Cash 4,000
Petty cash fund 4,000

15 Petty cash fund 12,000

Cash 12,000