Heredia, Ashley Nicole D.

BSA211B

Problem 1:

The composition of Bea Company’s “cash account” as of December 31, 2024 is as follows:
Demand deposit account – P2M
Time deposit – 30 days – 1M
NSF check of customer – 40K
Money market placement (due June 30, 2025) – 1.5
Savings deposit in a closed bank – 100K
IOU from employee – 20K
Pension fund – 3M
Petty cash fund – 10K
Customer’s check dated January 1, 2025 – 50K
Customer’s check outstanding for 18 months – 40K
Additional information follows:

• Check of P200,000 in payment of accounts payable was recorded on December 31,

2024 but mailed to suppliers on January 5, 2025.
• Check of P100,000 dated January 15, 2025 in payment of accounts payable was
recorded and mailed on December 31, 2024
• The company uses the calendar year. The cash receipts journal was held open until
January 15, 2025, during which time P400,000 was collected and recorded on
December 31, 2024.
The cash and cash equivalents to be shown on the December 31, 2024 balance sheet is:

SOLUTION:
Demand Deposit Account 2,000,000
Time Deposit – 30 days 1,000,000
Petty Cash Fund 10,000
Unreleased Checks Drawn 200,000
Postdated Checks Drawn 100,000
Collection (400,000)
Cash and Cash Equivalent – December 31, 2024 2,910,000
Problem 2:

Juan Company reported the checkbook balance on December 31, 2024 held the following items
in the safe on that date:
Check payable to the entity, dated January 2, 2025 in payment of a sale, not included in
December 31 check book balance - P1M
Check payable to the entity, deposited December 15 and included in December 31 checkbook
balance, but returned by bank on
December 30 stamped “NSF”. The check was redeposited on
January 2, 2025 and cleared on January 5, 2025 – P3M
Check drawn on the entity’s account, dated and recorded on December 31, 2024 but not mailed
until January 15, 2025- P2.5M
Coins and currencies on hand – P800K
Three-month money market instruments – P1.5M
What is the correct amount of Cash on December 31, 2024?’

SOLUTION:
Unreleased Checks Drawn 2,500,000
Coins and Currencies on hand 800,000
Cash – December 31, 2024 3,300,000

Problem 3:

On December 31, 2024, the cash account of Dominic Company has a debit balance of
P3,500,000. An analysis of the cash account shows the following details:
Undeposited collections – P60k
Cash in bank-PCIB checking account – P500K
Cash in bank-PNB (overdraft) – (P50K)
Undeposited NSF check received from a customer, dated Dec. 1, 2024 – P15K
Undeposited check from a customer, dated January 15, 2025 – P25K
Cash in bank-PCIB (fund for payroll) – P150K
Cash in bank-PCIB (savings deposit) – P100K
Cash in bank-PCIB (money market instrument, 90 days) – P2M
Cash in foreign bank (restricted) – P100K
 IOUs from officers – P30K
Sinking fund cash – P450K
Listed stock held as temporary investment – P120K

SOLUTION:
Undeposited collections 60,000
Cash in bank – PCIB (Checking Account) 500,000
Cash in bank – PCIB (Payroll Fund) 150,000
Cash in bank – PCIB (Savings Deposit) 100,000
Cash in bank – PCIB (Money Market Instrument – 90 days) 2,000,000
Cash and Cash Equivalents – December 31, 2024 2,810,000

MULTIPLE CHOICE QUESTIONS:

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