Problem 1

1
Cash on Hand 220,900.00
Savings Deposit Account 1,980,000.00
Savings Deposit in a closed bank insured by PDIC 500,000.00
Sinking Fund (current portion) 1,674,000.00
Petty Cash Fund 15,000.00
Check drawn dated January 1, 2023 79,800.00
Unrecorded Check 200,000.00
Postdated check drawn 100,000.00
Window dressing adjustment (100,000.00)
Total Cash 4,669,700.00

2
Time deposit - 60 days 875,000.00
Money Market Placement (due April 1, 2023) 1,258,000.00
Total Cash Equivalent 2,133,000.00

3
Depreciation Fund 1,795,000.00
Sinking Fund (Non-current portion) 1,116,000.00
Total Non-Current Asset 2,911,000.00

Problem 2

1
Bank Balance 1,500,000.00
Add: Deposit in Transit 225,000.00
Less: Outstanding check (155,000.00)
Bank Error : Erroneous Credit (35,000.00)
Adjusted Bank Balance 1,535,000.00

2 Book Balance (Squeeze) 1,288,750.00

Add: Credit Memo - Note Collected by Bank 375,000.00
Less: Debit Memo
Bank Service Charge (65,000.00)
NSF Check returned (42,500.00)
Collection Fee for the Notes (11,250.00)
Book Error: Erroneous record of check drawn (10,000.00)
Adjusted Book Balance 1,535,000.00

3 Adjusted Book Balance 1,535,000.00

Unadjusted Book Balance 1,288,750.00
Net Adjustment 246,250.00
*the limit here is up to 500,000 only even if the remaining amount is 750,000
(2,790,000 x 60%) - maturing next year 2023, all funds maturing within a year will be part of cash, except depreciation fund.

*Postdated check

(2,790,000 x 40%)

*(375,000 x 3%)
*(32,500 - 22,500)
debit *since there's an increase from unadjusted to adjusted, the net adjustment is to be debitted.
cept depreciation fund.
o be debitted.
Problem 3
1.
Total Sales 1,320,000.00
Less: Cash Sales (220,000.00)
Less: Sales Return (Credit) (11,000.00) (13,200 - 2,200)
Net Credit Sales 1,089,000.00
Percentage of Credit Sales 2%
Bad Debts Expense 21,780.00

2.
Allowance for Doubtful Accounts
17,600.00 Beginning
Write-offs 11,000.00
2,200.00 Recoveries
21,780.00 Bad Debts Expense
30,580.00 Allowance for Doubtful Accounts, Ending

3.
AR, ending 330,000.00
Less: Allowance for
DA, Ending (30,580.00)

Net Realizable Value 299,420.00

 Problem 4

1. Cash Discount
Divided by: Cash Discount percent
Portion of Credit Sale that avail Cash Discount
Divided by: Percent of Credit Sale Customers availing the discount
Total Accounts Receivable
Add: Beg, AR.
Ending, AR

2. Allowance for Doubtful Accts, Ending

Allowance for Doubtful Accts, Dec. 31, 2021

ul Accounts, Ending
Divided by: Accounts Receivable
Percentage of Receivable, 2021
Multiplied by:
Percentage of Receivable, 2022
Multiplied by:
Allowance for Doubtful Accts, 2022

3. Net Realizable Value

Total Accounts Receivable

Less: Allowance for Doubtful Accts, 2022
Net Realizable Value

4. DOUBTFUL ACCTS EXPENSE

Write-off

5. 0, because allowance for doubtful accounts

are presented at statement of financial position.
 6,000.00
2%
300,000.00
g the discount 10%
3,000,000.00
1,000,000.00
4,000,000.00 *The answer here is either 3,000,000 or 4,000,000 because
it was not clear on the problem if the beginning AR of
1,000,000 was collected.

40,000.00
1,000,000.00
4%
150% or 1.5 (rate requirement for 2022)
6%
3,000,000 or 4,000,000
180,000 / 240,000

3,000,000 / 4,000,000
180,000 / 240,000
2,820,000 / 3,760,000

Allowance for Doubtful Accounts

40,000.00 Beginning
44,000.00
3,000.00 Recovery
181,000 / 241,000 Bad debts expense (squeeze)
180,000 / 240,000 Ending Balance
0,000 because
1.
Unadjusted book balance, November 77,900.00
Add: Unadjusted book receipts
Collection from customers 165,000.00
Note collected by bank in Nov, recorded in Dec. 8,000.00 173,000.00
Total 250,900.00
Less: Unadjusted book disbursements
Checks drawn 98,000.00
Bank Service Charge in Nov recorded in Dec. 100.00 98,100.00
Unadjusted book balance, December 152,800.00

2-5. Particulars Beginning (Nov. 30)

Balance per Bank Statement
Deposit in Transit 90,800.00
November 30 5,000.00
December 31
Outstanding Check
November 30 (32,000.00)
December 31
Bank errors - Dec.
Check of Bagsic Co.
Bank Service Charge to another client
Adjusted Bank Balance 63,800.00

Particulars Beginning (Nov. 30)

Balance per books 77,900.00
Customer's note collected by Bank
November 30 8,000.00
December 31
Bank Service Charge
November 30 (100.00)
December 31
Book errors
Check no. 1159 (P30,000 - P3,000) (27,000.00)
Check no. 1767 (mutilated check) 5,000.00
Adjusted Bank Balance 63,800.00
Receipts Disbursements Ending (Dec. 31)

169,000.00 123,800.00 136,000.00

(5,000.00)
8,000.00 8,000.00

(32,000.00)
7,700.00 (7,700.00)

(1,500.00) 1,500.00
150.00 (150.00)
172,000.00 98,150.00 137,650.00

Receipts Disbursements Ending (Dec. 31)

173,000.00 98,100.00 152,800.00

(8,000.00)
7,000.00 7,000.00

(100.00)
150.00 (150.00)

(27,000.00)
5,000.00
172,000.00 98,150.00 137,650.00