NEW ERA UNIVERSITY - LIPA CITY BRANCH

INTERMEDIATE ACCOUNTING 1 - SAT 7;00AM TO 1:00PM

CASH AND CASH EQUIVALENTS -

PROBLEM SOLVING APPLICATION OF CASH

PROBLEM 1

THE FOLLOWING INFORMATION HAS BEEN EXTRACTED FROM THE ACCOUNTING RECORDS OF JHOMAR ARIANTE
DECEMBER 31, 2021
A. CASH ON HAND - P 230,000 INCLUDES THE FOLLOWING:
1 A CUSTOMER CHECK FOR p43,000 RETURNED BY THE BANK ON DECEMBER 28, 2021. IT WAS REDEPOSITED AND CLEARED
THE BANK ON JANUARY 2, 2022.
2 A CUSTOMER CHECK FOR P75,000 DATED JANAURY 3, 1921, RECEIVED DECEMBER 27, 2020
3 PHILPOST MONEY ORDERS RECEIVED FROM CUSTOMERS, P30,000
B. BPI FAMILY BANK - SAVINGS ACCOUNT - P9,500
MONTHLY MIMINUM AVERAGE DAILY BALANCE ID P10,000.
C 364-DAY TREASURY BILLS PURCHASED MARCH 1, 2021 P400,000
D. PETTY CASH FUND P20, 000 CONSIST OF THE FOLLOWING :
1 CURRENCY AND COINS - P13,500
2 IOU'S FROM OFFICERS AND EMPLOYEES - P3,000
3 UNREPLENISHED PETTY CACH DISBURSEMENTS P 1,500
4 CURENCY IN ENVELOP WITH THE NOTATION - DEATH DONATION TO COMPANY CO WORKERS - P1,500.
E. BDO CURRENT ACCOUNT - P160,000 CONSIST OF THE FOLLOWING:
1 A CHECK FOR P13,000 AS DATED AND RECORDED ON DECEMBER 29, 2021 BUT WAS DELIVERED TO PAYEE ON 01/05/2022
2 A CHECK FOR P5,000 DATED JANUARY 10, 1921, PAYABLE TO A SUPPLIER WAS RECORDED AND RELEASED TO PAYEE ON
DECEMBER 19, 2022. BDO REQUIRES CURRENT ACCOUNT DEPOSITORS TO MAINTAIN A MONTHLY AVERAGE DAILY
BALANCE OF P50,000.
F TIME DEPOISTS PLACEMENTS
DECEMBER 15, 2021
OCTOBER 31, 2021
NOVEMBER 30, 2021
G EMPLOYEE TRAVEL ADVANCES
H CASH IN BOND SINKING FUND
I CUSTOMER'S NOTE RECEIVABLES
J. POSTAGE STAMPS

HOW MUCH CASH AND CASH EQUIVALENTS . SHOW YOUR COMPUTATIONS.

A. CASH ON HAND 230000-430,000-75,000

B. BPI SAVING BANK
C. PETTY CASH
D. BDO CURRENT ACCOUNT 160000+13,000+5,000
E. TIME DEPOSITS 30000+40,000
F 364 TREASURY BILL
G EMPLOYEES TRAVEL ADVANCES
H. CASH IN BOND SINKING FUND
I CUSTOMER'S NOTE RECEIVABLES
J. POSTAGE STAMPS

T O T A L

NOTEl ATTACHED YOUR WORKING PAPERS OR SOLUTIONS ON YOUR ANSWERS .

SUBMITTED BY: MICHELLE D. LOPEZ

SIGNATURE : _________________________________
NAME : MICHELLE D. LOPEZ
DATE SEPT. 10 2022
NEW ERA UNIVERSITY - LIPA CITY BRANCH
INTERMEDIATE ACCOUNTING 1 - SAT 7;00AM TO 1:00PM
CASH AND CASH EQUIVALENTS -
PROBLEM SOLVING APPLICATION OF CASH

PROBLEM 2
THE CONTROLLER OF THE YDNAR CEDRICK DUTOLLO CO., IS TRYING TO DETERMINE THE AMOUNT OF CASH AND CASH EQUIVALENT
TO BE REPORTED ON ITS DECEMBER 31, 2021 STATEMENT OF FINANCIAL POSITION. THE FOLLOWING INFORMATION IS PROVIDED:
1 BALANCES IN THE COMPANY'S ACCOUNT AT THE MBTC - CHECKING ACCOUNT - p540,000; SAVINGS ACCOUNT P 884,000
2 UNDEPOSITED CUSTOMER CHECKS OF P208,000
3 CURRENCY AND COINS ON HAND P23,200
4 SAVINGS ACCOUNT AT THE PNB BALANCE P350,000. THIS ACCOUNT IS BEING USED TO ACCUMULATE CASH FOR FUTURE
EXPANSION IN 2022
5 RCBC BALANCE P800,00
6 TREASURY BILLS 30 DAY MATURITY BILLS P600,000, AND 180 DAYS BILL P800,00

WHAT AMOUNT SHOULD BE REPORTE AS CASN AND CASH EQUIVALENT:

1 MBTC CURRENT
2 PNB SAVINGS
3 UNDEPOSITED CUSTOMER CHECKS
4 CURRENCY AND COINS ON HAND
5 RCBC BALANCE
6 TREASURY BILLS

TOTAL

PROBLEM 3
THE FOLLOWING FACTS IS APPLY TO TRISHIA JOY LARONA CO.
1 SAVINGS ACCOUNT P900,000;
CHECKING ACCOUNT P1,200,000 - MANILA BANK
2 MONEY MARKET PLACEMENT - 3 MONTHS MATURITY P7,500,000
3 CURRENCY AND COINS ON HAND - P11,550
4 TRAVEL ADVANCES - IST QUARTER OF THE YEAR P270,000 - SALARY DEDUCTION
5 PURCHASED COMMERCIAL PAPER OF MORENO CORP DUE IN 60 DAYS - P3,150.000
6 SEPARATE CASH FUND RESTRICTED FOR RETIREMENT OF LONG TERM DEBT - P2,250,000
7 PETTY CASH FUND - P 1,500
8 AN IOU FROM EMPLOYEE - P2,000.
9 TWO CERTIFICATES OF DEPODITS TOTAL P500,000 MATURITY 120 DAYS
10 RECEIVED CHECK DATED JANUARY 15, 2022 - P187,500
11 PURCHASED MARKETABLE SECURITIES ON JANUARY 01, 2021 TO BE HELD AS TRADING - P 3,000,000.
DECEMBER 31, 2021 MARKET VALUE P4,000,000

TOTAL CASH AND CASH EQUIVALENT

NOTEl ATTACHED YOUR WORKING PAPERS OR SOLUTIONS ON YOUR ANSWERS .

SUBMITTED BY:

SIGNATURE : _________________________________
NAME: MICHELLE D. LOPEZ
DATE: SEPTEMBER 10,2022
NEW ERA UNIVERSITY - LIPA CITY BRANCH
INTERMEDIATE ACCOUNTING 1 - SAT 7;00AM TO 1:00PM
CASH AND CASH EQUIVALENTS -
PROBLEM SOLVING APPLICATION OF CASH

PROBLEM 4 BANK RECONCILIATION - SUBMIT WITH WORKING PAPERS ON YOUR SOLUTIONS.

A. THE ACCOUNTANT OF S.P PESTANAS CO., PROVIDED THE FOLLOWING DATA IN RECONCILING THE
APRIL 30 CASH IN BANK BALANCE
BALANCE PER BANK
BALANCE PER BOOK
BANK SERVICE CHARGE
DEPOSIT IN TRANSIT
OUTSTANDING CHECKS
NOTE COLLECTED BY BANK - INCLUDED INTEREST - THE COMPANY NOT INFORMED
CHECK DRAWN BY ABC CO. ERRONEOUSLY CHARGED BY BANK TO S.P. PESTANAS CO.
TRANSPORTATION ERROR AS MADE IN RECORDING A SALE AND DEPOSIT IN THE SALES JOURNAL
AND CASH RECEIPTS JOURNAL ;

PREPARE BANK RECONCILIATI ON AS OF APRIL 30, 2022

SOLUTION:
UNADJUSTED BALANCES
BANK SERVICE CHARGE
DEPOSITE INTRANSITS
OUTSTANDING CHECK
COLLECTION OF NOTE
ERRONOUS BANK DEBITS
TRANSPORTATION ERROR (16,000-13,600)
ADJUSTED BALANCE:

B. L.B. SORO BANK STATEMENT INFORMATION FOR THE MONTH OF JUNE, 2022
A CUSTOMER'S CHECK HAS BEEN MARKED "NSF" BY THE BANK AND RETURNED
BANK CHARGES
IN COMPARING THE BANK STATEMENT TO THE COMPANY'S CASH RECORDS, YOU FOUND :
OUTSTANDING CHECKS - MARCH 31, 2022
DEPOSITS MADE BUT ARE NOT YET SHOWN IN THE APRIL BANK STATEMENT
THE DEPOSITS IN TRANSIT AND OUTSTANDING CHECKS HAVE BEEN CORRECTLY TAKEN IN THE
CO. BOOKS. YOU FOUND A CUSTOMER'S CHECK NOT YET BEEN DEPOSITED AND HAD NOT BEEN
RECORDED IN THE BOOK
BOOK CASH BALANCE
WHAT IS THE CORPORATION CORRECT CASH BALANCE AT MARCH 31, 2022

SOLUTION:
BALANCE PER BOOK 36,420
UNRECORDED AND UNDEPOSITED CUSTOMER'S CHECK 17,400
BANK SERVICE CHARGE -1,200
NSF CHECK -13,000
ADJUSTED BALANCE 39,620

C THE FOLLOWING INFORMATION PERTAINS TO A CHECKING ACCOUNT OF E.L. VILLAMOR AT JUNE 30, 2022
BALANCE PER BANK STATEMENT
INTEREST EARNED FOR THE SECOND QUARTER
OUTSTANDING CHECKS
 CUSTOMER'S CHECK RETURNED FOR INSUFFICIENT FUND (NSF)
DEPOSIT IN TRANSIT
WHAT IS THE CASH BLANCE PER BOOKS AT JUNE 30, 2022

D J.A. ARIANTE CO. IS RECORDING ITS BANK STATEMENT WITH INTERNAL RECORDS.
CASH BALANCE PER BOOKS
BANK CHARGES NOT YET RECORDED
OUTSTANDING CHECK
DEPOSIT IN TRANSIT
BANK CREDITS AND COLLECTION NOT YET TAKEN UP IN THE COMPANY'S BOOKS
WHAT IS THE CASH BALANCE PER BANK

E THE CASH ACCOUNT SHOWS A BALANCE BEFORE RECONCILIATION

BANK STATEMENT DOES NOT INCLUDE A DEPOSIT MADE ON THE LAST DAY OF THE MONTH
BANK STATEMENT SHOWS COLLECTION
BANK RETURNED NSF CHECK
CUSTOMER CHECK OF P2,250 RECORDED IN THE BOOKS
CHECK P395 RECORDED AS
WHAT IS THE CORRECT CASH BALANCE

SOLUTION
BALANCE PER BOOK
BANK PER BOOK
CUSTOMER NSF CHECK
OVERSTATMENT OF CASH RECIEPT (2,700-2,250)
OVERSTATMENT OF CASH DISBURSTMENT (485-395)
ADJUSTED BALANCE:

SUBMITTED BY: MICHELLE D. LOPEZ

SIGNATURE : _________________________________
NAME: MICHELLE D. LOPEZ
DATE: SEPTEMBER 10,2022

NEW ERA UNIVERSITY - LIPA CITY BRANCH

INTERMEDIATE ACCOUNTING 1 - SAT 7;00AM TO 1:00PM
CASH AND CASH EQUIVALENTS -
PROBLEM SOLVING APPLICATION OF CASH

F A CORPORATION RECEIVED ITS BANK STATEMENT FOR JUNE 30

CASH BALANCE PER BOOK
COLLECTIONS WERE RECORDED ON THE BOOKS BUT WERE NOT DEPOSITED UNTIL JULY
BANK CHARGES FOR JUNE
PAID CHECK P24,300 WAS ENTERED INCORECTLY IN THE CASH PAYMENTS JOURNAL AS
WHAT IS THE TOTAL OUTSTANDING CHECKS AT JUNE 30

SOLUTION:
BALANCE PER BOOK
BANK SERVICE CHARGE
OVERSTATEMENT OF DISBURSEMENT 34,200-24,300
ADJUSTED CASH BALANCE

BALANCE PER BANK, JUNE 30

ADDꓽ UNDEPOSITE COLLECTIONS
TOTAL
LESSꓽ ADJUSTED CASH BALANCE
OUTSTANDING CHECKS, JUNE 30

PROBLEM 5 BANK RECONCILIATION - SUBMIT WITH WORKING PAPERS ON YOUR SOLUTIONS.

PROOF OF CASH :
THE FOLLOWING DATA ARE ASSEMBLED BY THE ACCOUNTANT OF THE ALTERADO COMPANY

CASH ACCOUNT BALANCE

BANK BALANCE
DEPOSITS IN TRANSIT
OUTSTANDING CHECKS
BANK CHARGES
NSF CHECK - REDEPOSITED IN THE SAME MONTH. NO ENTRIES MADE
COMPANY'S NOTES RECEIVABLES COLLECTED BY BANK

BANK STATEMENT AND THE COMPANY'S CASH RECORDS SHOW THE FOLLOWING:
CANCELLED CHE CKS AND DEBIT MEMOS PER BANK STATEMENT
CASH RECEIPTS PER CASH BOOK
CHECKS WRITTEN PER CASH BOOK
DEPOSITS AND CREDIT MEMOS PER BANK STATEMENT

SOLUTION
CASH RECIEIPTS PER CASH BOOK 411,592.50
ADDꓽNOTES COLLECTED BY THE BANK IN NOVEMBER 179,537.50
TOTAL BOOK RECEIPTSIN DECEMBER 591,130.00

CHECKS WRITTEN PER CASH BOOK 529,792.50

ADDꓽ BANK SERVICE CHARGE IN NOVEMBER 1,800
TOTAL BOOK DISBURSEMENTS IN DECEMBER 531,592.50

1 TOTAL BOOK RECEIPTS IN DECEMBER

2 TOTAL BOOK DISBURSEMENT IN DECEMBER
3 ADJUSTED BOOK BALANCE IN NOVEMBER
4 ADJUSTED BANK RECEIPTS IN DECEMBER
5 ADJUSTED BOOK DISBURSEMENT IN DECEMBER
6 ADJUSTED BOOK BALANCE IN DECEMBER

FORMAT

BALANCE PER BANK STATEMENT

DEPOSIT IN TRANSIT - NOV 30
DEPOSIT IN TRANSIT - DEC 31
OUTSTANDING CHEKCS - NOV 30
OUTSTANDING CHECKS - DEC 31
NFS CHECK
ADJUSTED BALANCE

FORMAT

BALANCE PER BOOK

BANK SERVICE CHARGES - NOV 30
BANK SERVICE CHARES - DEC 31
COLLECTIONS - NOTES RECEIVABLES - NOV 30
COLLECTIONS - NOTES RECEIVABLES - DEC 31
ADJUSTED BALANCE

SUBMITTED BY: MICHELLE D. LOPEZ

SIGNATURE :
NAMEꓽ MICHELLE D. LOPEZ
DATE: SEPTEMBER 10,2022
AND CLEARED

N 01/05/2022
O PAYEE ON
DAILY

30 DAYS 30,000
90 DAYS 40,000
180 DAYS 25,000
7,000
500,000
45,000
2,400

2021 2021 2022

112,000
9,500
13,500
178,000
70,000

383,000 0
EQUIVALENT
S PROVIDED:
NT P 884,000

FOR FUTURE

540,000
884,000
208,000
23,200
800,000
600,000

3,055,200

900,000.00
1,200,000.00
7,500,000.00
11,550.00

3,150,000.00

1,500.00

12,763,050.00
 130,350.00
85,000.00
2,000.00
49,000.00
17,650.00
136,000.00
54,600.00

CORECT AMOUNT 13,658.00

RECORDED 16,358.00
216,300.00

BOOK BANK
85,000 130,350
-2,000
49,000
-17,650
136,000
54,600
-2,700
216,300 216,300

13,000.00
1,200.00

184,000.00
14,000.00

17,400.00
36,420.00
39,620.00

200,000.00
- 500.00
- 15,000.00
 5,000.00
25,000.00
214,500.00

45,000.00
- 5,000.00
7,500.00
- 12,500.00
15,000.00
50,000.00

225,000.00
11,500.00
4,700.00
1,600.00
2,700.00
485.00
227,740.00

225,000
4,700
-1,600
-450
90
227,740

209,500.00
35,000.00
176,000.00
3,000.00
34,200.00

35,000
-3,000
9,900
41,900

209,500
176,000
385,500
41,900
343,600
 NOV 30 DEC 31
41,175.00 100,712.50
267,705.00 344,542.50
20,502.50 32,200.00
69,295.00 75,280.00
1,800.00 1,500.00
20,625.00
179,537.50 202,250.00

545,932.50
411,595.50
529,792.50
622,770.00

591,130.00
531,592.50
218,912.50
613,842.50
531,292.50
301,462.50

BALANCE DECEMBER
NOV 30 RECEIPTS DISBURSMENT BALANCE DEC 31
267,705.00 622,770.00 545,932.50 344,542.50
- 69,295.00 - 69,295.00
75,280.00 - 75,280.00
20,502.50 - 20,502.50
32,200.00 32,200.00
- 20,625.00 - 20,625.00
218,912.50 613,842.50 531,292.50 301,462.50

BALANCE DECEMBER
NOV 30 RECEIPTS DISBURSMENT BALANCE DEC 31
41,175.00 591,130.00 531,592.50 100,712.50
- 1,800.00 - 1,800.00
1,500.00 - 1,500.00
179,537.50 - 179,537.50
202,250.00 202,250.00
218,912.50 613,842.50 531,292.50 301,462.50
inventories