Accounting 3

Take Home Exam# 1 – Cash and Cash Equivalents

Instruction: Answers should be supported with computations. NO COMPUTATION NO CREDIT. DO NOT

COPY THE PROBLEMS. Submit your answers/solutions on or before 4:00 , February 16, 2023.

1. AXL Company shows the following account balances in their financial records as of December 31, 2022:

Checking account at RBC Bank, ( P 20,000); Checking account at BDO, P 500,000; Payroll account BDO, P 100,000; Foreign bank
account – restricted, P 750,000, Postage stamps, P 22,000; Employees ‘ post dated checks, P 30,000; I.O.U. from president’s brother,
P 75,000; Traveler’s check, P 50,000; No-sufficient funds check, P 18,000; Petty cash fund ( P 16,000 in currency & expenses receipts
for P 84,000), P 100,000; and Cashier’s checks, P 36,000.

What is the correct cash balance to be reported in the statement of financial position of AXL Company on December 31, 2022?

2. The Cash account in the current assets section of the statement of financial position for HAVEN Company showed a balance of
P 555,000. It was found to include the following items:

Petty cash fund (P 1,000 in the form of paid vouchers), P 50,000; Checking account balance, per bank statement (a P 25,000 check is
still outstanding), P 255,000; Undeposited receipts (including a post dated check for P 5,000), P 120,000; Currencies and coins
awaiting deposit, P 55,000; Bond sinking fund- cash, P 100,000; Check drawn by manager, returned by bank marked NSF, P 20,000.

What is the correct cash balance to be reported in the statement of financial position of Haven Company? ____________

3. The following information is shown in the accounting records of Cartoon Company :

January 1 December 31
Cash P 186,000 ?
Accounts receivable 201,000 P 273,000
Merchandise Inventory 258,000 234,000
Accounts Payable 159,000 144,000
Prepaid Expense 120,000 108,000

Total Sales and cost of goods sold for 2022 were P 2,394,000 (including P 500,000 cash sales) and P 1,749,000, respectively. All
purchases were made on credit. Various operating expenses of P 321,000 were paid in cash. Assume there were no other pertinent
transactions.
What is the cash balance on December 31, 2022 of Haven Company? __________________.

4. LOAD Company reported the following information in relation to Cash on December 31, 2022:
 Checkbook balance, P 4,000,000.
 Undeposited collections, P 400,000.
 A customer check amounting P 200,000 dated January 18, 2023 was included in the December 31, 2022 checkbook balance.
 Another customer check for P 500,000deposited on December 22, 2022 was included in the checkbook balance but returned
by the bank for insufficiency of fund.

This check was redeposited on December 26, 2022 and cleared 2 days later.
 A P 400,000 check payable to supplier dated and recorded on December 31, 2022 was mailed on January 16, 2023.
 A petty cash fund of P 50,000 comprised the following on December 31, 2022:
Coins and currencies P 7,000
Petty cash vouchers 43,000
P 50,000

 A check of P 43,000 was drawn on December 31, 2022 payable to Petty Casheier.

Q1: What is the adjusted Cash in bank on December 31, 2022? _______________________

Q2: What amount should be reported as Cash on December 31, 2022____________________

5. Tender Company provided the following data for the purpose of reconciling the cash balance per book.

January 1
Deposit in transit 140,000
December NSF check ( of which P 10,000 had been re-deposited and cleared on Dec. 27) 30,000
Erroneous credit to Tender’s account , representing proceeds of loan granted to another company 60,000
Proceeds of note collected by bank for Tender, net of service charge of P 4,000 150,000
Erroneous bank charge 8,000
A check of P 5,000 in payment of account was recorded by the company as 500

The correct cash balance to be shown in the company’s December 31, 2022 statement of financial position is? ________
6. In reconciling the Cash in bank of Trade Company with the bank statement for the month of November, 2022, the following data are
summarized:

Total book receipts – November P 800,000

Bank receipt – November 900,000
Credit memo for note collection:
October 60,000
November 75,000
Credit memo for November bank loan 100,000
Deposit in transit for October 120,000
Erroneous bank credit for November 25,000
Erroneous bank credit for October corrected by bank in November 50,000
Erroneous book credit during November 5,000
Erroneous book credit during October corrected by the company during November 10,000
Debit memo for service charge – October 6,000
Debit memo for service charge – November 8,000
Erroneous book debit - November 20,000
Erroneous bank debit – November 65,000
Book disbursement – November 600,000
Bank disbursement – November 700,000
Outstanding check – October 80,000

Q1: What is the amount of outstanding checks for November? _____________________

Q2: How much is the deposit in transit for the month of November? _____ _______
Q3: What is adjusted amount of receipt for the month of November? ________________
Q4: What is the adjusted amount of disbursement for the month of November? ___ .

7. Problem 2 -4 (Chivalry Company p. 65 Intermediate 1 by Valix.

8. Problem 2 – 19 Timex Company p. 76 Intermediate 1 by Valix.

9. Problem 1 – 8 p. 24 – Tacit Company .. Intermediate 1 by Valix.

10. Problem 1 – 10 – Tranvia Company, Intermediate 1 by Valix.

11. Problem 1 – 15 – Joana Company Intermediate 1 by Valix.

12. Problem 1 – 20 - Ral Company, Intermediate 1 by Valix.

13. Problem 1 – 22 – Isabel Company , Intermediate 1 by Valix.

14 – Problem 1 – 24 , Marjorie Company, Intermediate 1 by Valix.

15. Problem 1 – 26 – Andi Company, Intermediate 1 by Valix.