Problem 1-1 (IAA)

 Stale Checks – 200,000

 Unreleased Checks – 250,000
 Postdated Checks – 100,000
 450,000 – shouldn’t be recorded on Dec.31,2020

Note: asterisks are not sure answers

1. Adjusting Entries:

Accounts Receivable 200,000

Cash 200,000

Cash 250,000
Accounts Payable 250,000

Cash 100,000
Accounts Payable 100,000

Accounts Receivable 450,000

Cash 450,000

2. CCE total as of dec.3, 2020 is 3,720,000

Cash in bank 3,000,000

Time Deposit (30days) 1,000,000
Petty Cash Fund 20,000
Stale checks (200,000)
Unreleased Checks 250,000
Postdated Checks 100,000
Shouldn’t be recorded (450,000)

Total CCE 3,720,000

3. Explanation
Problem 1-2 (IAA)

 Postdated check – 150,000 , 5,000

 Unreplenished Petty Cash – 10,000
 BPI Time Deposit (90 days) – 2,000,000
 Bond Sinking Fund – 2,500,000

Note: asterisks are not sure answers

1. Adjusting Entries:

Accounts Receivable 150,000

Cash 150,000

*Compound Entry
Expenses 10,000
Accounts Receivable 5,000
Petty Cash Fund 15,000

2. Total of CCE is * 6,685,000

Cash on hand 1,000,000

Petty Cash Fund 50,000
(15,000) 35,000
Security Bank CA 2,000,000
PNB CA 1,500,000
Bond Sinking Fund 2,500,000
Postdated Checks (150,000)

Total CCE *6,885,000

3. Explanation
Problem 1-3 (IAA)

Note: asterisks are not sure answers

1. Adjusting Entries:

a. Accounts Receivable 100,000

Cash 100,000

b. Accounts Receivable 150,000

Cash 150,000

c. None

*Petty Cash Fund

 Fluctuation System

Employee’s IOU 10,000

Cash Short or Over 5,000
Petty Cash Fund 15,000

 Imprest System

Employee’s IOU 10,000

Cash Short or Over 5,000
Petty Cash Fund 15,000

Cash 200,000
Accounts Payable 200,000

Cash 300,000
Accounts Payable 300,000

*2. The total of cash on Dec.31, 2020 is 7,285,000

 Fluctuating System
 Cash on Hand 1,000,000
Petty Cash Fund50,000
(15,000) 35,000
Cash in Bank 4,000,000
Saving Deposit 2,000,000
NSF Checks (100,000)
Postdated Checks (150,000))
Undelivered Checks 200,000
Postdated Checks 300,000
7,285,000

 Imprest System

Cash on Hand 1,000,000

Petty Cash Fund50,000
(15,000) 35,000
Cash in Bank 4,000,000
Saving Deposit 2,000,000
NSF Checks (100,000)
Postdated Checks (150,000)
Undelivered Checks 200,000
Postdated Checks 300,000
Total CCE 7,285,000
Problem 1-4 (PHILCPA Adapted)

Note: asterisks are not sure answers

1. The total of CCE is

Cash on Hand 200,000

Petty Cash Fund 20,000
(15,000) 5,000
Philippine Bank CA 5,000,000
City Bank CA No.1 4,000,000
City Bank CA No.2 (Overdraft) (100,000)
Asia Bank Saving Account 250,000
Asia Bank time deposit 90 days 2,000,000
NSF Checks (35,000)
Postdated Checks (15,000)
45,000 30,000
Undelivered Checks 25,000
Total CCE 11,375,000

2. Adjusting Entries:

Accounts Receivable 35,000

Cash 35,000

Accounts Receivable 15,000

Cash 15,000

Bank overdraft (City Bank CA No. 2) 100,000

City Bank CA No.1 100,000
*This is the entry if it was offsetted to the other account

City Bank CA No.1 100,000

Bank overdraft (City Bank CA No. 2) 100,000
*This is the entry if it is not offsetted to the other account but the answer will be
11,475,000 because the 100,000 is considered as liability.
*Petty Cash Fund

 Fluctuation system

Cash short or over 1,000

Receivables from employees’ 2,000
Unreplenished petty cash vouchers 12,000
Petty Cash Fund 15,000
 Imprest System

Cash short or over 1,000

Receivables from employees’ 2,000
Unreplenished petty cash vouchers 12,000
Petty Cash Fund 15,000

Cash 25,000
Accounts Payable 25,000

Cash 45,000
Accounts Payable 45,000
Problem 1-5 (ACP)

Note: asterisks are not sure answers

 Imprest fund system

Jan.2 Petty Cash Fund 10,000

Cash in Bank 10,000

Jan.2-31 No Entry

Feb.1 Petty Cash Fund 5,000

Postage 1,500
Supplies 5,500
Transportation 1,200
Miscellaneous Expense 800
Cash in Bank 14,000

 Fluctuating fund system

Jan.2 Petty Cash Fund 10,000 PCF: 10,000

Cash in Bank 10,000

Jan.2-31 Postage 1,500

Supplies 5,500
Transportation 1,200
Miscellaneous Expense 800
Petty Cash Fund 9,000 PCF: 1,000

Feb.1 Petty Cash Fund 5,000 PCF: 6,000

Cash in Bank 5,000
Problem 1-6 (ACP)

Note: asterisks are not sure answers

 Imprest fund system

Petty Cash Fund 10,000

Cash in Bank 10,000

Petty Cash Fund 10,000

Postage 1,500
Supplies 3,000
Transportation 1,000
Accounts Payable 3,500
Cash in Bank 19,000

 Fluctuating fund system

Petty Cash Fund 10,000 PCF: 10,000

Cash in Bank 10,000

Postage 1,500
Supplies 3,000
Petty Cash Fund 4,500 PCF: 5,500

Transportation 1,000
Accounts Payable 3,500
Petty Cash Fund 4,500 PCF: 1,000

Petty Cash Fund 19,000 PCF: 20,000

Cash in Bank 19,000
Problem 1-7 (IAA)

Note: asterisks are not sure answers

 Imprest fund system

May 2 Petty Cash Fund 10,000

Cash in Bank 10,000

May 29 Postage 1,000

Supplies 3,000
Transportation 2,500
Miscellaneous Expense 1,500
Cash in Bank 8,000

June 30 Supplies 2,000

Postage 1,000
Transportation 1,000
Petty Cash Fund 4,000

July 1 Petty Cash Fund 4,000

Supplies 2,000
Postage 1,000
Transportation 1,000

July 15 Petty Cash Fund 5,000

Supplies 3,500
Postage 1,500
Transportation 1,500
Miscellaneous Expense 500
Cash in Bank 12,000
 Fluctuating fund system

May 2 Petty Cash Fund 10,000 PCF: 10,000

Cash in Bank 10,000

May 29 Petty Cash Fund 8,000 PCF: 18,000

Postage 1,000
Supplies 3,000
Transportation 2,500
Miscellaneous Expense 1,500
Petty Cash Fund 8,000 PCF: 10,000
Cash in Bank 8,000

*June 30 Supplies 2,000

Postage 1,000
Transportation 1,000
Petty Cash Fund 4,000 PCF: 6,000

*This one is deducted

*July 15 Petty Cash Fund 15,000 PCF: 18,000

Supplies 1,500
Postage 500
Transportation 500
Miscellaneous Expense 500
Cash in Bank 15,000
Petty Cash Fund 3,000 PCF: 15,000

*This one is not deducted

*July 15 Petty Cash Fund 16,000 PCF: 22,000

Supplies 3,500
Postage 1,500
Transportation 1,500
Miscellaneous Expense 500
Cash in Bank 16,000
Petty Cash Fund 7,000 PCF: 15,000
Problem 1-8 (IAA)

Note: asterisks are not sure answers

 Fluctuating fund system

Nov.2, 2020 Petty Cash Fund 10,000 PCF: 10,000

Cash in Bank 10,000

*Nov.30, 2020 Petty Cash Fund 17,000 PCF: 27,000

Postage 2,000
Supplies 5,000
Petty Cash Fund 7,000 PCF: 20,000
Cash in Bank 17,000

Dec.31, 2020 Postage 3,000

Supplies 4,000
Deposit for 20 cases of softdrinks 2,000
Petty Cash Fund 9,000 PCF: 11,000

Jan. 2, 2021 Petty Cash Fund 2,000 PCF: 13,000

Deposit for 20 cases of softdrinks 2,000

*This one is deducted

Jan. 31, 2021 Petty Cash Fund 11,500 PCF: 24,500

Postage 2,000
Supplies 2,000
Postage Stamps 500
Payment of account 7,000
Petty Cash Fund 11,500 PCF: 13,000
Cash in Bank 11,500

*This one is not deducted

Jan. 31, 2021 Petty Cash Fund 18,500 PCF: 31,500

Postage 5,000
Supplies 6,000
Postage Stamps 500
Payment of account 7,000
Petty Cash Fund 18,500 PCF: 13,000
Cash in Bank 18,500
 Imprest fund system

Nov.2, 2020 Petty Cash Fund 10,000

Cash in Bank 10,000

Nov.30, 2020 Petty Cash Fund 10,000

Postage 2,000
Supplies 5,000
Cash in Bank 17,000

*Dec.31, 2020 Postage 3,000

Supplies 4,000
Deposit for 20 cases of softdrinks 2,000
Petty Cash Fund 9,000

*Jan.1, 2020 Petty Cash Fund 9,000

Postage 3,000
Supplies 4,000
Deposit for 20 cases of softdrinks 2,000

Jan.2, 2020 No Entry

Jan.31, 2020 Cash short or over 1,000

Postage 5,000
Supplies 6,000
Payment of account 7,000
Cash in Bank 19,000
Problem 1-9 (IAA)

Note: asterisks are not sure answers

 Imprest fund system

Dec.1, 2020 Petty Cash Fund 10,000

Cash in Bank 10,000

Dec.20, 2020 Vouchers for selling expenses 5,000

Vouchers for Miscellaneous Expenses 2,000
Vouchers for equipment 2,000
Cash in Bank 9,000

Dec.31, 2020 Vouchers for selling expenses 1,500

Vouchers for transportation 500
Postdated employee’s check 2,000
Petty Cash Fund 4,000

Jan.1, 2021 Petty Cash Fund 4,000

Postdated employee’s check 2,000
Vouchers for selling expenses 1,500
Vouchers for transportation 500

Jan.15, 2021 No entry

Jan.31, 2021 Distribution Costs 500

Administrative Expenses 2,000
Transportation 1,000
Payment for supplier’s invoice 1,200
Voucher for selling expenses 1,500
Vouchers for transportation 500
Cash in Bank 6,700

2. The Total Petty Cash as of Jan.31, 2021 before the replenishment is 3,300
Problem 1-10 (AICPA Adapted)

Note: asterisks are not sure answers

1. C

3,500,000+350,000+750,000=4,600,000

Problem 1-11 (IAA)

1. C

5,000,000+400,000+50,000+100,000+1,000,000=6,550,000

Problem 1-12 (AICPA Adapted)

1. A

4,000,000+500,000=4,500,000

Problem 1-13 (AICPA Adapted)

1. B

40,000+400,000+4,000,000+1,000,000+2,000,000+1,500,000=8,940,000

Problem 1-14 (AICPA Adapted)

1. B

5,600,000+50,000+2,500,000+1,000,000=9,150,000

Problem 1-15 (AICPA Adapted)

1. C

2,250,000+125,000=2,375,000

Problem 1-16 (IAA)

1. B

50,000+4,100,000+1,000,000=5,150,000
Problem 1-17 (IAA)

Note: asterisks are not sure answers

1. D

600,000+4,000,000+1,000,000+2,000,000+450,000=8,050,000

Problem 1-18 (AICPA Adapted)

1. B

8,000,000-2,000,000-500,000+1,500,000+400,000+40,000=7,440,000

2. C

2,500,000+3,000,000=5,500,000

Problem 1-19 (IAA)

1. A

2. A

2,000,000+1,500,000=3,500,000

Problem 1-20 (PHILCPA Adapted)

1. C

Problem 1-21 (PHILCPA Adapted)

1. C

Problem 1-22 (ACP)

1. B

4,000,000-200,000+400,000=4,200,000

2. A

4,000,000-200,000+400,000+400,000+45,000=4,645,000
Problem 1-23 Multiple choice (IAA)

1. D 6. C
2. B 7. B
3. A 8. D
4. B 9. A
5. D 10. C

Problem 1-24 Multiple choice (IAA)

1. D
2. A
3. C
4. B
5. D

Problem 1-25 Multiple choice (IAA)

1. D
2. D
3. C
4. C
5. B