Problem 1 - 1 (IAA) : Required
Problem 1 - 1 (IAA) : Required
Problem 1 - 1 (IAA) : Required
v The cash in bank included customer check of P200,000 outstanding for 18 months.
v Check of P250,000 in payment of accounts payment of accounts payable was dated and recorded on
December 31,2020 but mailed to creditors in January 15,2021.
v Check of P100,000 dated January 31,2021 in payment of accounts payable was recorded and mailed
December 31,2020.
The cash receipt journal was held open until January 15,2021 during which time an amount of
P450,000 was collected and recorded on December 31,2020.
Required:
v The cash on hand included a customer postdated check of P150,000 and postal money order of
P50,000.
v The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check
for P5,000 dated January 31,2021.
v The BPI time deposit is set aside for acquisition of land to be made in early January 2021.
v The bond sinking fund is set aside for payment of bond payable due December 31,2021.
Required:
What amount should be reported as cash and cash equivalents on December 31,2020?
a. 1,100,000
b. 3,850,000
c. 4,600,000
d. 8,600,000
Problem 1 – 11 (IAA)
Affable Company provided the following information at year-end comprising the cash –account:
a. 8,050,000
b. 7,050,000
c. 6,550,000
d. 6,450,000
Problem 1 – 12 (AICPA Adapted)
On December 31,2020, what amount should be reported as cash under current assets?
a. 4,500,000
b. 5,500,000
c. 3,500,000
d. 6,500,000
Problem 1 – 13 (AICPA Adapted)
The petty cash fund included unreplenished December 2020 petty cash expense vouchers of P5,000 and
employee IOU of P5,000.
The cash on hand included a P100,000 check payable to the entity dated January 31,2021.
What total amount should be reported as cash and cash equivalent on December 31,2020?
a. 6,940,000
b. 8,940,000
c. 7,940,000
d. 7,440,000
Cash in bank in included P 400,000 of compensating balance against short term borrowing arrangement.
a. 9,500,000
b. 9,150,000
c. 9,100,000
d. 6,950,000
Problem 1 – 15 (AICPA Adapted)
Cash in bank included P 600,000 of compensating balance against short – term borrowing arrangement.
a. 1,775,000
b. 2,250,000
c. 2,375,000
d. 3,975,000
Problem 1 – 16 (IAA)
• A check for P100,000 was drawn against First Bank current account dated and recorded December
29,2020 but delivered to payee on January 15,2021.
• The Fourth Bank time deposit is set aside for land acquisition in early January 2021.
What total amount should be reported as cash and cash equivalents on December 31,2020?
a. 5,050,000
b. 5,150,000
c. 4,900,000
d. 4,150,000
Problem 1 – 17 (IAA)
On December 31,2020, what total amount should be reported as cash and cash equivalents?
a. 7,600,000
b. 8,200,000
c. 6,050,000
d. 8,050,000
Problem 1 – 18 (AICPA Adapted)
Aruba Company had a checkbook balance on December 31,2020 of P8,000,000 and held following items
in the safe.
a. 7,400,000
b. 7,440,000
c. 8,440,000
d. 7,450,000
a. 6,500,000
b. 3,000,000
c. 5,500,000
d. 2,500,000
Problem 1 – 19 (IAA)
Ecstasy Company reported the following information at the end of the current year.
• Share investments of P1,000,000 that are actively traded in the Philippine Stock Exchange.
• Government treasury bills of P2,000,000.
The treasury bills have a 10 – year term and purchased on December 31 at which time they had two
months to go until they mature.
• Cash of P3,400,000 in the form of coins, currency, saving account and checking account.
• Commercial papers pf P1,500,000.
The term of the commercial papers is nine months and the instruments were purchased on
December 31 at which time they had three months to go until the mature.
1. What total amount should be reported as cash at the end of current year?
a. 3,400,000
b. 5,400,000
c. 4,900,000.
d. 6,900,000
2. What total amount should be reported as cash equivalent at the end of current year?
a. 3,500,000
b. 4,500,000
c. 1,500,000
d. 2,500,000
Marjorie Company established a petty cash fund of P50,000 with the following information:
a. 42,000
b. 27,000
c. 37,000
d. 22,000
Admirable Company had a petty cash fund which included the following details:
a. 2,000
b. 7,000
c. 6,000
d. 9,000
Problem 1 – 22 (ACP)
Love Company reported the following information in relation to cash on December 31,2020:
This check was redeposited on December 26,2020 and cleared two days later.
• A P400,000 check payable to supplier dated and recorded on December 30,2020 was mailed on
January 16,2021.
• A petty cash fund of P50,000 comprised the following on December 31,2020:
a. 4,600,000
b. 4,200,000
c. 4,400,000
d. 3,700,000