Problems and Exercises 1.

Prepare adjusting entries on December 31, 2016

Code Val0701 (IAA): On December 31, 2016, Albania Company Code Val0704 (PhilCPA): Callous company reported the following
provided the following data: accounts on December 31, 2016:
Cash in bank 3,000,000 Cash on hand 200,000
Time deposit – 30 days 1,000,000 Petty cash fund 20,000
Money market placement due June 30, 2017 2,000,000 Philippine Bank current account 5,000,000
Savings deposit in closed bank 100,000 City bank current account No. 1 4,000,000
Sinking fund cash for bonds payable due June 30, City bank current account No. 2 (overdraft) (100,000)
2016 1,500,000 Asia Bank savings account 250,000
Petty cash fund 20,000 Asia Bank time deposit – 90 days 2,000,000
The cash in bank included customers’ check of P200,000 Cash on hand included the following items:
outstanding for 18 months  Customer check for P35,000 returned by bank December
Check of P250,000 in payment of accounts payable was dated and 26,2016 due to insufficient funds but subsequently redeposited
recorded on December 31, 2016 but mailed to creditors on January and cleared by the bank January 10, 2017
15,2017
 Customer’s check for P15,000 dated January 10, 2017 received
Check of P100,000 dated January 31,n 2017 in payment of accounts
December 23, 2016
payable was recorded and mailed December 31, 2016
The petty cash fund consisted of the following
The reporting period is the calendar year. The cash receipts journal
 Currency and cpins, P5,000
was held open until January 15, 2017 during which time an amount
of P480,000 was collected and recorded on December 31,2016.  IOU’s from officers, P2,000
Requirements:  Unreplenished petty cash vouchers, P12,000
1. Prepare adjusting entries on December 31, 2016 Included among the checks drawn by Callous Company against the
2. Compute the total amount of cash and cash equivalents that Philippine Bank current account and recorded in December 2016
should be reported on December 31, 2016 were the following:
3. Explain the presentation of the accounts excluded from cash  Check written and dated December 23, 2016 and delivered to
and cash equivalent payee on January 2, 2017, P25,000
 Checks written December 26, 22016, dated January 30, 2017
Code Val 0702 (IAA): Argentina company reported the following delivered to payee on December 28, 2016, P45,000
accounts on December 31, 2016: Required:
Cash on hand, P1,000,000; Petty cash fund, P50,000; Security Bank 1. Compute the total cash and cash equivalent
account, P2,000,000; PNB current account, P1,500,000; BDO 2. Prepare adjusting entries
current account, 0verdraft, P(200,000); BSP Treasury bills – 120
days, P3,000,000; BPI Time deposit – 90 days, P2,000,000 Code Millan 07 Cash: On December 31, 2009, West Company had
Bond sinking fund, P2,500,000 the following cash balances:
Cash in banks, P1,800,000; Petty cash funds (all funds were
The cash account included a customer postdated check of P150,000 reimbursed on 12/31/09), P50,000
and postal money order of P50,000 Cash in banks includes P600,000 of compensating balances against
The petty cash fund included not replenished petty cash vouchers for short-term borrowing arrangements at December 31, 2009. The
P10,000 and an employee check for P5,000 dated January 31,2017 compensating balances are not legally restricted as to withdrawal by
The BPI time deposit is set aside for the acquisition of land to be West. In the current assets section of West's December 31, 2009,
made in early January 2017 balance sheet (statement of financial position), what total amount
The bond sinking fund is set aside for the payment of bond payable should be reported as cash?
due December 31, 2017
Requirements: Code Mill 07: Trans Co. had the following balances at December 31,
1. Prepare adjusting entries on December 31, 2017 2009:
2. Compute the amount of cash and cash equivalent Cash in checking account, P35,000
Cash in money market account, P75,000
CodeVal0703 (IAA): Armenia Company reported the following Treasury bill, purchased 11/1/2009, maturing 1/31/2010, P350,000
information on December 31, 2016 Treasury bill, purchased 12/1/2009, maturing 3/31/2010, P400,000
Cash on hand 1,000,000
Petty cash fund 50,000 Tran’s policy is to treat as cash equivalents all highly liquid
Cash in bank 4,000,000 investments with a maturity of three months or less when purchased.
Savings deposit 2,000,000 What amount should Trans report as cash and cash equivalents in its
December 31, 2009, balance sheet (statement of financial position)?
Cash on hand included the following:
Customer’s check of P100,000 returned by bank December 26,2016
Code Mill 07: The cash balance of CAPSIZE OVERTURN Co.
due to insufficient fund but subsequently redeposited and cleared by
comprises the following:
bank January 3, 2017
Cash on hand, P300,000; Cash in bank, savings, BPI, P600,000;
Customer’s check for P150,000 dated January 15, 2017 received
Cash in bank – current – BPI, P(240,000); Cash in bank, deposit in
December 22, 2016
escrow, Metrobank, P300,000; Cash in bank, current, Metrobank
Postal money orders received from customers P200,000
(Overdraft), P(60,000); Cash in bank current – BDO, P( 90,000)
The petty cash fund consisted of the following:
 Currency and coins, P2,000
Additional information:
 Employee’s IOU, P10,000 Cash on hand includes undeposited collections of P60,000.
 Currency in envelope marked collection for a Christmas The cash in bank – savings maintained at BPI includes a P150,000
party, P5,000 compensating balance which is not restricted.
 Check drawn by Armenia payable to petty cashier, P33,000 What amount of cash is reported in the financial statements?
Check written and dated December 22, 2016 and delivered to payee
on January 5, 2017, P200,000 GOODLUCK
Check written December 26 and dated January 31, 2017 delivered to
payee on December 20,2016, P300,000
Required: