Acctg 602, Short Term 2017, Cash and Cash Equivalents Page 1 of 2

1) ABC Corporation shows the following account balances in their financial records as of December 31, 2017:

Checking account at BPI (P 200,000) IOU from presidents brother P 75,000

Checking account at Security Bank 500,000 Travellers check 50,000
Payroll account at PNB 100,000 No sufficient funds check (NSF) 18,000
Foreign bank account - restricted 750,000 Petty cash fund, P16,000 in currency
Postage stamps 22,000 and expenses receipts for P84,000 100,000
Employees post-dated checks 30,000 Cashiers check 36,000

What is the correct cash balance as of December 31, 2017?

a) P582,000 b) P686,000 c) P702,000 d) P704,000

2) The cash account in the current asset section of the statement of financial position for ABC Corporation showed a
balance P555,000. It was found to include the following items:

Petty cash fund, P1,000 is in the form of paid vouchers P 5,000

Checking account balance, per bank statement, P25,000 check still outstanding 255,000
Undeposited receipts, including post-dated check for P5,000 120,000
Currencies and coins awaiting deposit 55,000
Bond sinking fund 100,000
Check drawn by manager, returned by bank marked NSF 20,000

What is the correct cash balance for ABC Corporations statement of financial position?
a) P404,000 b) P429,000 c) P430,000 d) P529,000

3) On December 31, 2017, ABC Corporation has the following composition of cash and cash equivalents:

Demand deposit P 1,500,000 IOU from an employee P 30,000

Certificate of deposit 30 days 500,000 Petty cash fund 10,000
NSF check of customer 20,000 Customers check dated
Money market placement, January 31, 2018 60,000
due on June 30, 2018 1,000,000 Customers check outstanding
Savings deposit in closed bank 50,000 for 18 months 30,0000

Additional information follows:

Check of P100,000 in payment of accounts payable was recorded on December 31, 2017 but mailed to
creditors on January 15, 2018
Check of P50,000 dated January 31, 2018 in payment of accounts payable was not recorded and mailed
December 31, 2017
The company uses the calendar year. The cash receipts journal was held open until January 15, 2018,
during which time, P200,000 was collected and recorded on December 31, 2017.

How much cash and cash equivalents should be shown on the December 31, 2017 statement of financial position?
a) P1,910,000 b) P1,960,000 c) P2,160,000 d) P2,360,000

4) ABC Corporation provided the following data for the purpose of reconciling the cash balance per book

Balance per book P 170,000

Outstanding checks, including certified check of P20,000 100,000
Deposit on transit 40,000
December NSF check, of which P10,000 had been re-deposited and cleared on December 27 30,000
Erroneous credit to ABCs account, representing proceeds of loan granted to another company 60,000
Proceeds of note collected by bank for ABC, net of service charge of P4,000 150,000
Erroneous bank charge 3,000
A check ok P5,000 in payment of account was recorded by the company as 500

The correct cash balance to be shown in the companys December 31, 2017 statement of financial position?
a) P285,500 b) P295,500 c) P335,500 d) P345,500

5) In your audit of ABC Corporation as of December 31, 2017, you gathered the following:

Balance per book P 600,000 Customer note collected by bank P 225,000

Bank charges 1,500 Interest on customer note 9,000
Balances per bank 605,000 Customer check returned NSF 37,500
Deposit in transit 180,000 Depositors note charged to account 150,000
Acctg 602, Short Term 2017, Cash and Cash Equivalents Page 2 of 2

What is the total amount of outstanding checks?

a) P140,000 b) P150,000 c) P160,000 d) P165,000

6) The following information was included in the bank reconciliation of ABC Corporation on December 31, 2017:

Total recorded company receipts for December P 850,000

Credit memo for November recorded in December 60,000
Credit memo for December not yet recorded 80,000
Erroneous receipt by the company during December,
no correction was made until the following year 50,000
Erroneous bank disbursement in December corrected by bank in December 18,000
Deposit of BCA Corporation credited to ABC Corporation during December 20,000
Total receipts per bank in December 900,000
Deposit in transit December 31, 2017 100,000
Book receipt for P50,000 in December recorded by the company as 5,000

What is the adjusted receipts for December?

a) P845,000 b) P850,000 c) P865,000 d) P895,000

7) ABC Corporation had the following bank reconciliation at March 31, 2017:

Balance per bank statement, 3/31 P 465,000

Add: Deposit in transit P 100,000
Debit memo 10,000 110,000
Total P 575,000
Less: Outstanding checks P 125,000
Credit memo 60,000 185,000
Balance per book, 3/31 P 390,000

All reconciliation items at March 31, 2017 cleared through the bank in April. Reconciling items for April follows:

Outstanding checks P 75,000 Erroneous book receipt, corrected

Deposits in transit 150,000 on the same month P 19,000
Credit memo 80,000 Bank receipts 600,000
Debit memo 15,000 Bank disbursement 500,000

What is the amount of cash receipts per books in April?

a) P590,000 b) P630,000 c) P649,000 d) P650,000