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M2.1G Post-Test 1 - Cash and Cash Equivalents (Questionnaires)
M2.1G Post-Test 1 - Cash and Cash Equivalents (Questionnaires)
M2.1G Post-Test 1 - Cash and Cash Equivalents (Questionnaires)
INTERMEDIATE ACCOUNTING 1
POST-TEST1- COMPOSITION OF CASH
NAME SECTION
(Family Name) (First Name) (Middle Name) SCORE
DATE RATING
Part 1 (20)
Part 2 (24)
Part 3 (20)
Part 4 (6)
Total
GENERAL INSTRUCTIONS
1. Complete the information above.
2. Only BACK TEXT is allowed to be used for your answers.
3. Any form of cheating will be dealt with accordingly.
4. Failure to comply with the above rules will merit a grade of “F”.
Problem 1
The following cash items are presented by Bahamas Company:
1. How much should Bahamas Company report as “Cash” in its December 31, 2019 statement
of financial position?
A. P 720,000
B. P 1,220,000
C. P 2,690,000
D. P 2,710,000
Problem 2
The following data of Data Corporation are available as of year-end of 2019:
2. How much cash should Data Corporation report as cash on the statement of financial
position at year-end of 2019?
A. P 332,580
B. P 320,580
1
C. P 322,000
D. P 302,000
Problem 3 (PHILCPA Adapted)
The current asset section of BBC Company’s statement of financial position as at December 31, 2019 reported
its cash account with a balance of P 701,500 which consists of the following items:
3. Question 3:
The correct cash balance for the statement of financial position as at December 31, 2019 is
A. P 404,500
B. P 436,500
C. P 554,500
D. P 589,000
4. What is amount of the petty cash fund balance for statement of financial position
purposes?
A. P 10,000
B. P 7,000
C. P 6,000
D. P 9,000
Problem 5
On April 1, 2020, Mar Company established an imprest petty cash fund for P 10,000 by writing a check drawn
against its general checking account. On April 23, 2020, the fund contained the following:
5. What is the amount of the replenishment check under the imprest fund system?
A. P 7,000
B. P 6,600
C. P 10,000
D. P 3,000
2
6. How much is the petty cash shortage or overage?
A. P 300
B. P 400
C. P 700
D. P 0
Problem 6 (AICPA)
Apex Corporation’s checkbook balance on December 31, 2019 was P 160,000. The same date Apex held the
following items in its safe:
A P 5,000 check payable to Apex, dated January 2, 2000, that was not included in the December 31
checkbook balance.
A P 3,500 check payable to Apex, deposited December 22 and included in the December 31 checkbook
balance, that was returned by the bank on December 30 and marked NSF. The check was redeposited
January 1, 2020 and cleared January 7, 2020.
A P 25,000 check, payable to a supplier and drawn on Apex’s account, that was dated and recorded
December 31, 2019, but was not mailed until January 15, 2020.
7. In its December 31, 2019 statement of financial position, Apex should report cash at:
A. P 156,500
B. P 161,500
C. P 181,500
D. P 185,000
Problem 7 (AICPA)
Burr Company had the following account balances at December 31, 2019:
Cash in bank includes P 600,000 of compensating balance against short-term borrowing arrangement. The
compensating balance is not legally restricted as to withdrawal by Burr.
8. In the current asset section of Burr’s December 31, 2019 statement of financial position,
the total cash to be reported
A. P 1,775,000
B. P 2,250,000
C. P 2,375,000
D. P 3,975,000
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9. What amount of cash and cash equivalents should Agenda Company report in its
December 31, 2019 statement of financial position?
A. P 2,869,000
B. P 2,874,000
C. P 2,882,000
D. P 2,909,000
a) Two certificates of deposits, each totaling P 500,000. These certificates of deposits have a maturity of
120 days.
b) A check that is dated January 12, 2020 in the amount of P 125,000.
c) A commercial paper of P 2,100,000 which is due in 120 days.
d) Currency and coins on hand amounted to P 7,700.
Western Company has agreed to maintain a cash balance of P 500,000 in one of its banks at all times and is not
available for withdrawal and to ensure future credit availability (this amount was included in the above balance).
10 How much is the correct amount of cash and cash equivalents that Western Company
. should report in its December 31, 2019 statement of financial position?
A. P 2,600,000
B. P 3,100,000
C. P 5,200,000
D. P 6,200,000
Money market placement due on April 30, 2020 (placement date – 12/1/2019) 2,000,000
Money market placement due on March 1, 2020 (placement date – 12/20/2019) 1,500,000
ANSWER
2. What is the correct balance of petty cash fund at December 31, 2019?
ANSWER
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3. How much is the petty cash shortage (overage)? (2 POINTS)
ANSWER
4. What is the total cash to be reported in the statement of financial position at December 31, 2019?
ANSWER
5. What is the total cash equivalents to be reported in the statement of financial position at December 31,
2019?
ANSWER
For succeeding questions,
write NO AJE if it does not require adjusting entry at 12/31/2019 (14 POINTS):
9. What is the adjusting entry for Unreplenished Petty Cash Vouchers at 12/31/2019?
Account Names Debit Credit
11. What is the adjusting entry for petty cash fund shortage (overage) 12/31/2019?
Account Names Debit Credit
5
QUIZ PROPER PART 3 – PROOF OF CASH (20 POINTS)
Indiana Jones Corporation provided you the following data for the month of December 2020.
November 30 December 1
Required:
A. Prepare a four-column reconciliation using the adjusted balance method.
B. Prepare one adjusting entry only for December 31, 2020.
SOLUTION:
Requirement A – Proof of Cash using adjusted balance method (16 POINTS)
DECEMBER
November 30 Receipts Disburse. December 31
Unadjusted bank balances
6
Adjusted book balances
1. Which of the following should not be considered cash for financial reporting purposes?
A. Petty cash
B. Money Orders
C. Coins and Currencies
D. IOUs