1.

Lipton Company shows the following account balances in their financial records as of December 31, 2018:

Checking account at Morgan Bank (20,000.00)

Checking account at Land Bank 500,000.00
Payroll account at National Bank 100,000.00
Foreign bank account-resticted 750,000.00
Postage Stamps 22,000.00
Employees' postdated checks 30,000.00
IOU from president's brother 75,000.00
Traveler's check 50,000.00
NSF check 18,000.00
Petty cash fund (16,000 in currency and expenses receipts for 84,000) 100,000.00
Cashier's check 36,000.00

Q1: what is the correct cash balance to be reported in the statement of financial position of Lipton Company on December
31, 2018?

Q2: What is the correct cash balance to be reported in the statement of financial position of Lipton Company on December
31, 2018 assuming the bank overdraft is repayable on demand and it’s integral to the entity’s cash management?

2. The cash account in the current asset section of the balance sheet of Heater Company showed a balance of P555,000. It was
found to include the following items:

Petty cash fund (P1,000 is in the form of paid vouchers) 5,000.00

Chacking account balance, per bank statement
(A P25,000 check is still outstanding) 255,000.00
Undeposited receipts, including a post-dated check for P5,000 120,000.00
Currencies and coins awaiting deposit 55,000.00
Bond sinking fund - cash 100,000.00
Check drawn by manager, returned by bank marked NSF 20,000.00

What is the correct cash balance for Heater Company’s statement of financial position?

3. On December 31, 2018, Agenda Company has the following information concerning its cash and cash equivalents and some
other items:

Coins and Currency 50,000.00

Checks received from customers 600,000.00
Certificated of deposit, term: 12 months 800,000.00
Petty cash fund 4,000.00
Postage Stamps 600.00
Bank A, checking account balance 2,100,000.00
Post-dated check, customer 10,000.00
Money order from customer 15,000.00
Cash in savings account 100,000.00
Bank draft from customer 40,000.00
Utility deposit to gas company, refundable 5,000.00
Cash advance received form customer 8,000.00
Cash advance to company executive, collectible upon demoand 200,000.00
NSF check, C Company 20,000.00
Bank B, checking account, overdraft 20,000.00
IOUs from employees 12,000.00

What amount of cash and cash equivalents should Agenda Company report in its Dec 31, 2018 statement of financial
position?
4. Delta Corporation has supplied you with the following list of its bank accounts and cash at December 31, 2018:

Checking account (compensating balance of P15,000 with no restriction) 48,000.00

Savings account, 2% 30,000.00
Certificate of deposit, 6 months, 10% due April 20, 2019 60,000.00
Money market (30-day certificate), current rate, 9.75% 40,000.00
Payroll account 20,000.00
Certificate of deposit, 3 months, 10% due February 15, 2019 75,000.00
Petty cash 1,500.00
274,500.00
What should be the reported balance of cash and Cash equivalents in the December 31, 2018 statement of financial
position of Delta Corporation?

5. Angelic Corporation had the following account balances at December 31, 2018:

Cash on hand and in banks 975,000.00

Cash resticted for additions to plant (expected to be disbursed in 2020) 600,000.00
Bank certificates of deposit (due January 16, 2019) 250,000.00
In the current assets section of Angelic’s December 31, 2018 statement of financial position, what is the total amount that
should be reported under the caption “cash and cash equivalents”?

6. The cash account in the current asset section of the December 31, 2018 balance sheet of King Company consists of:

Cash in banks 2,250,000.00

Cash resticted for additions to plant 9expected to be disbursed in 2020) 3,000,000.00
Petty cash funds (all funds were replenished on December 31, 2018) 30,000.00
Included in the cash in banks is a compensating balance of 750,000 against short-term borrowing arrangements at
December 31, 2018. The compensating balance is not legally limited as to withdrawal by King Company.

What is the correct cash balance of King Company at December 31, 2018?

7. Following were the account balances of Born Company at December 31, 2018:

Cash on hand 187,500.00

Cash in current and savings accounts 3,375,000.00
Cash set aside for plant expansion (expexted for payment in 2019) 2,400,000.00

Cash in current and savings accounts includes P900,000 as holdout against short-term loan arrangements. There are no
legal restrictions as to withdrawal by Born on these holdouts.

What is the total cash that should be reported in the current assets section of Born’s December 31, 2018 statement of
financial position?

8. On December 31, 2018, First Company had the following cash balances:
Cash in banks 1,800,000.00
Petty cash funds (all funds were reimbursed in December 31, 2018) 50,000.00
Cash in banks included a P600,000 in a separate bank where-in the company is required to maintain a minimum average of
P800,000 of P10 workings on a rolling basis.

In the current assets section of the company’s December 31, 2018 statement of financial position, what total amount
should be shown as cash?
9. PCU Corporation’s check book balance on December 31, 2018 was P160,000. On the same date, PCU held the following in
its safe:
 A P5,000 check payable to PCU, dated January 2, 2019, was not included in the December 31 check book balance
 A P3,500 check payable to PCU which was deposited December 19 and included in the December 31 check book
balance, was returned by the bank on December 30 marked NSF. The check was re-deposited on January 2, 2019
and cleared on January 9.
 A P25,000 check payable to a supplier and drawn on PCU’s account, was dated and recorded on December 31, but
was not mailed until January 19, 2019.

In its December 31, 2018 statement of financial position, how much should PCU report as cash?
10. Volume Company had the following cash balance at December 31, 2018:

Undeposited coins and currency 35,000.00

Unrestricted demand deposits 1,450,000.00
Company checks written (and deducted from the demand deposits amount)
but not scheduled to be mailed until January 2 270,000.00
Time deposits restricted for use (expected use in 2019) 3,000,000.00

In exchange for a guaranteed line of credit, volume has agreed to maintain a minimum balance of P150,000 in its restricted
demand deposits account. What is the amount of cash to be reported in its December 31, 2018 statement of financial
position?

11. Western Company reported a total cash and cash equivalent of P6,325,000 on December31, 2018, which includes the
following information:
 Two certificates of deposits, each totalling P500,000. These certificates of deposit have a maturity of 120 days
 A check that is dated January 12, 2019 in the amount of P125,000
 A commercial paper of P2,100.000 which is due in 120 days.
 Currency and coins on hand amounted to P7,700.

Western Company agreed to maintain a cash balance of P500,000 in one of its banks at all times and it is not available for
withdrawal and to ensure future credit availability (this amount was included in the above balance).

How much is the correct amount of cash and cash equivalents that Western Company should report in its December 31,
2018 statement of financial position?

12. Eastern Co. provided the following information about the composition of its cash on December 31, 2018
 Commercial savings account of P600,000 and a commercial checking account balance of P900,000 are held at BPI.
 Money market fund account held by Citibank that permits Eastern to write checks in this balance, P5,000,000
 Travel advances of P180,000 for executive travel for the first quarter of next year (employee to pay through salary
deduction)
 A separate cash fund in that amount of P1,500,000 is restricted for the retirement of long term assets.
 Petty cash fund, P10,000

What is the correct amount of cash and cash equivalents Eastern Company should report in its December 31, 2018
statement of financial position?

13. Real Company had the following transactions all throughout the year 2018 which is its first year of operations:
Sales (90% collected in the first year) 1,500,000.00
Bad debts written-off 60,000.00
Disbursements for cost and expenses 1,200,000.00
Disbursements for income taxes 90,000.00
Purchases of fised assets 400,000.00
Depreciation on fixed assets 80,000.00
Proceeds from issuance of ordinary shares 500,000.00
Proceeds from short-term borrowings 100,000.00
Payments on short-term borrowings 50,000.00
What is the cash balance at December 31, 2018?

14. The following is shown in the accounting records of Container Company:

1-Jan 31-Dec
Cash 186,000.00 -
Accounts Receivable 201,000.00 273,000.00
Merchandise Inventory 258,000.00 234,000.00
Accounts Payable 159,000.00 144,000.00
Total sales and cost of goods sold for 2018 were P2,394,000 and P1,749,000 respectively. All sales and purchases were
made on credit. Various operating expenses of P321,000 were paid in cash. Assume that there were no other pertinent
transactions.
What is the cash balance on December 31, 2018 of Container Company?
15. In preparing its bank reconciliation at December 31, 2018, Smiley Company has the following available data:

Balance per bank statement, December 31, 2018 38,075.00

Deposit in transit, December 31, 2018 5,200.00
Outstanding checks, December 31, 2018 6,750.00
Amount erroneuosly credited by bank to Smiley's
account, December 28, 2018 400.00
Bank Service charge for December 75.00
How much is Smiley’s adjusted cash in bank balance at December 31, 2018?

16. While checking the cash accounts of Ruler Company on December 31, 2018, you find the following information:
Balance per books 67,760.00
Balance in checking account (outstanding checks
per books of P9,876) 65,323.00
Deposit in bank closed by BSP 16,000.00
Deposit in transit 12,345.00
Currency and coins counted 9,500.00
Petty cash fund (of which P450 is in the form of
paid vouchers) 1,000.00
Bank charges not yet taken up in the books 58.00
Bond sinking fund- cash 10,000.00
Receivables from employees 700.00
Book error in recording a check, the correct
amount as paid by the bank is P890 instead of
P980 as recorded in the books, a difference of 90.00
Q1: What is the correct cash in bank balance for Ruler Company on December 31, 2018?
Q2: What is the correct cash on hand balance for Ruler Company on December 31, 2018?

17. Shown below is the bank reconciliation for LENT Company for May 2014:

Balance per bank, May 31, 2018 75,000.00

Add: Deposit in transit 12,000.00
Total 87,000.00
Less: Outstanding Checks 14,000.00
Bank credit recorded in error 5,000.00 19,000.00
Cash balance per book, May 31, 2018 68,000.00

The bank statement for June 2018 contains the following data:

Total deposits 55,000.00

Total charges, including NSF check of P4,000 and
a service charge of P200 48,000.00

All outstanding checks on May 31, 2018, including the bank credit, were cleared in the bank in June 2018. There were
outstanding checks of P15,000 and deposits in transit of P19000 on June 30, 2018.

Q1: What is the cash balance per bank on June 30, 2018?
Q2: What is the cash balance per books on June 30, 2018?

18. As of June 30, 2018, the bank statement of Marine Trading had an ending balance of P373,612. The following data were
assembles in the course of reconciling the bank balance:
 The bank erroneously credited Marine Trading for P2,150 on June 19
 During the month, the bank charged NSF checks amounting to P2,340 of which P800 had been redeposited on the
24th of June.
 Collection for June 30 totalling P10,330 was deposited the following month
 Checks outstanding as of June 30 were P30,205
 Notes collected by the bank for Marine Trading were P8,150 and the corresponding bank charges were P50

What is the adjusted bank balance on June 30, 2014?

19. Rich Company had the following bank reconciliation at March 30, 2018:

Balance per bank statement, March 31, 2018 46,500.00

Add: Deposit in transit 10,300.00
56,800.00
Less: Outstanding Checks 12,600.00
Balance per book, March 31, 2018 44,200.00
Data per bank statement for the month of April 2018 follow:
Deposits P58,400
Disbursements 49,700
All reconciliation items at March 31, 2018 cleared through the bank in April. Outstanding checks at April 30, 2018 totalled
P7,500.
Q1: What is the amount of cash disbursements per book in April?
Q2: What is the cash balance per books as April 30, 2018?

20. Everlasting Company is preparing its March 31 bank reconciliation. The following data are available:

From the February 28 bank reconciliation:

Deposits in transit 1,700.00
Outstanding checks 3,900.00
March data:
Per Bank Per Book
Balance, February 28 74,140.00 71,940.00
March deposits reflected 47,600.00 49,000.00
March checks reflected (61,700.00) (61,000.00)
Note collected (including P200 interest) 20,000.00
Service charge (120.00)
Balance, March 31 79,920.00 59,940.00
March checks reflected per bank erroneously includes a check drawn by Ever Company for P1,500.

Q1: How much is the deposits in transit at March 31?

Q2: How much is the outstanding checks at March 31?

21. Thesaurus Inc. reported a balance of P43,000 in its cash account at the end of the month. There were P20,000 deposits in
transit and p15,000 outstanding checks. The bank statement showed a balance of P50,000, including a note with face value
of P15,000 and a P6,000 service charge.

How much is the interest on the note collected by the bank?

22. In preparing its bank reconciliation for the month of December 2018, Promotion Company has the following information:

Balance per bank statement, December 31 396,550.00

Deposit in transit, December 31 68,750.00
Outstanding checks, December 31 63,250.00
Promotion's account erroneously credited by
bank on December 19 2,750.00
Bank service charges for December 550.00

What should be the balance of cash at December 31?

23. Reconciliation of Baron Company’s bank account at May 31 was as follows:

Balance per bank statement 105,000.00

Deposits in transit 15,000.00
Checks outstanding (1,500.00)
Correct cash balance 118,500.00

Balance per book 118,640.00

Bank service charge (140.00)
Correct cash balance, May 31 118,500.00
 June data are as follows:

Bank Book
Checks recorded 115,000.00 118,000.00
Deposits recorded 81,000.00 90,000.00
Service charges recorded 120.00
Collection by bank (P20,000 note plus interest) 21,000.00
NSF check returned with June 30 statement
(for redeposit, assumed to be good) 500.00
Balances, June 30 91,380.00 90,500.00

How much is the outstanding checks at June 30?

24. The cashier of Fraud Company misplaced all the bank statements for the past years. You reviewed the accounting records
and discovered that the following journal entries were made to reconcile the June 30, 2014 bank records and accounting
records.

Accounts Receivable 76,012.00

Miscellaneous Expense 625.00
Notes Receivable 10,000.00
Interest Revenue 500.00
Cash 66,137.00

Pre-adjustment cash balance in the accounting records was P371,023.50, outstanding checks were P10,375 and no other
adjustments were required.

What is the balance if the cash account per bank statement as of June 30, 2014?

25. Abacus Company prepares a 4-column bank reconciliation. Check No. 143 was written for P66,700 in the books but the
check cleared the bank for the correct amount of P75,700. What would be the correct treatment in the reconciliation?

26. Cocoon Corporation keeps all its cash in checking account. An examination of the Company’s accounting records and bank
statement for the month ended December 31, 2018 revealed the following information:

The cash balance as of December 31, 2018 represents:

Bank statement balance 84,690.00

Book balance 85,240.00

A deposit of P9,500 through the bank’s night depository box on December 29, 2018 did not appear on the bank statement.
The bank statement that shows that on December 28, 2018, the bank collected a note for Cocoon and credited the
proceeds of P9,350 to the Company’s account. The proceeds include P350 interest, all of which Cocoon earned during the
current accounting period. Cocoon has not yet recorded the collection.

Checks outstanding on December 31, 2018:

No.504 1,500.00
No.509 480.00
No.519 720.00
 Cocoon discovered that check no.523 written in December 2018 for P1,830 in payment to a supplier, had been
recorded in the company’s records at P1,380.
 Included with the December 31, 2018 bank statement was an NSF check for P2,500 that Cocoon had received from
Riverside Company on account on December 19. Cocoon has not yet recorded the returned check. The bank
statement shows a P150 service charge for December.

What should be the journal entry to adjust the cash balance as of December 31, 2018?
27. Shown below is the bank reconciliation for Central Company for May 2018:

Balance per bank, May 31, 2018 300,000.00

Deposit in Transit 48,000.00
Outstanding checks (56,000.00)
Bank credit recorded in error (20,000.00)
Cash balance per book, May 31, 2018 272,000.00

The bank statement for June 2018 contains the following data:
Total deposits 220,000.00
Total charges, including an NSF of P16,000 192,000.00
and service charge of P800
All outstanding checks on April 30, including the bank credit, were cleared in the bank on May 31. There were outstanding
checks of P60,000 and deposits in transit of P76,000 on May 31, 2018.

What is the cash balance per bank on June 30, 2018?

28. In reconciling the Cash in Bank of Inner Company with the bank statement balance for the month of November 2018, the
following data were summarized:

Book debits for November, including October CM for note collected, P60,000 P800,000
Book credits for November, including NSF of P20,000 and service charge of P800 for October P620,000
Bank credits for November, including CM for November for bank loan of P100,000 and
October deposit in transit for P80,000 P700,000

Bank debits for November including October outstanding checks of P170,800 and November
service charge of P200 P600,000

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

Q2: How much is the deposit in transit for the month of November?

29. The following information was included in the bank reconciliation for Internet Company for June:

Checks and charges recorded by bank in June (including a June service charge of P300), P172,100
Service charge made by bank in May and recorded on the books in June, P200
Total credits to cash in all journals during June, P198,020
Customer’s NSF check returned as a bank charge in June (no entry made on books), P1,000
Customer’s NSF check returned in May and redeposited in June (no entry made on books in either May or June), P2,500
Outstanding checks at June, P80,600
Deposit in transit in June, P6,000

What were the outstanding checks at the beginning of June?

30. The following information was included in the bank reconciliation for Roman Company for July 2018:

Checks and charges recorded by bank in July (including a July service charge of P2,800), P932,600
Service charge made by bank in June and recorded on the books in July, P1,200
Customer’s NSF check returned as a bank charge in July (no entry made on books), P6,000
Customer’s NSF check returned in June and recorded by the company in July P15,000
Outstanding checks at July 31, P300,000
Outstanding checks for June, P255,000
Checks issued in July for P20,000 recorded by the company as P2,000
Erroneous bank charge in July, P20,000
Erroneous bank credit in June corrected in July, P30,000
Erroneous book receipt in June corrected in July P5,000

What is the unadjusted disbursement per book on July 31, 2018?