1. The following data pertain to Lincoln Corporation on
December 31, 2009: Current account at Metrobank P1,800,000 Current account at Allied Bank (100,000) Payroll account 500,000 Foreign bank account (in equivalent pesos)
800,000 Savings deposit in a closed bank 150,000 Postage stamps 1,000 Employees post dated check 4,000 IOU from employees 10,000 Credit memo from a vendor for a purchase return
20,000 Travelers check 50,000 Money order 30,000 Petty cash fund (P4,000 in currency and expense receipts for P6,000)
10,000 Pension fund 2,000,000 DAIF check of customer 15,000 Customers check dated 1/1/10 80,000 Time deposit 30 days 200,000 Money market placement (due 6/30/10) 500,000 Treasury bills, due 3/31/10 (purchased 12/31/09)
200,000 Treasury bills, due 1/31/10 (purchased 1/1/09)
300,000
Compute for the cash and cash equivalents that should be reported on the December 31, 2009 balance sheet. a. P2,784,000 c. P3,784,000 b. P3,084,000 d. P3,584,000 rro 2. Ralf Corporation had the following account balances at December 31, 2009: Cash on hand and in bank P2,500,000 Cash restricted for bonds payable due on June 30, 2010
1,000,000 Time deposit 3,000,000 Savings deposit set aside for dividends payable on June 30, 2010
500,000
In the current assets section of Ralfs December 31, 2009 balance sheet, what total amount should be reported as cash and cash equivalents? a. P7,000,000 c. P6,500,000 b. P6,000,000 d. P5,500,000
3. On December 31, 2009, Alfonso Company had the following cash balances: Cash in bank P15,000,000 Petty cash fund 50,000 Time deposit 5,000,000 Saving deposit 2,000,000
Cash in bank includes P500,000 of compensating balance against short term borrowing arrangement at December 31, 2009. The compensating balance is legally restricted as to withdrawal by Alfonso. A check of P300,000 dated January 15, 2010 in payment of accounts payable was recorded and mailed on December 31, 2009. In the current assets section of the December 31, 2009 balance sheet, what amount should be reported as cash and cash equivalents? a. P21,850,000 c. P21,800,000 b. P16,850,000 d. P14,850,000
4. On January 1, 2009, Tinoc Company borrows P2,000,000 from National Bank at 12% annual interest. In addition, Tinoc is required to keep a compensatory balance of P200,000 on deposit at National Bank which will earn interest at 4%. The effective interest that Tinoc pays on its P2,000,000 loan is a. 10.0% c. 12.0% b. 11.6% d. 12.8%
5. Cash in bank balance of William Co. on January 1, 2009 was P70,000 representing 35% paid-up Capital of its authorized share capital of P200,000. During the year you ascertained the following postings to some accounts, as follows:
Debit Credit Petty cash fund P 2,000 Accounts receivable trade 450,000 P290,000 Subscription receivable 60,000 50,000 Delivery equipment 50,000 Accounts payable trade 280,000 430,000 Bank loan 35,000 80,000 Accrued expenses 1,500 Subscribed share capital 60,000 Unissued share capital 130,000 Authorized share capital 200,000 Sales 450,000 Purchases 430,000 Expenses (including depreciation of P5,000 and accrued expenses of P1,500)
90,000
Cash in bank balance at December 31, 2009 was a. P41,500 c. P34,500 b. P33,000 d. P39,500
6. An office supplies enterprise, operating on a calendar- year basis, has the following data in its accounting records: 01/01 12/31 Cash P 47,000 Inventory 101,000 P 93,000 Accounts receivable 82,000 116,000 Accounts payable 68,000 63,000 Sales 1,150,000 Cost of goods sold 900,000 Operating expenses 200,000
What is the expected cash balance for December 31? a. P50,000 c. P 76,000 b. P66,000 d. P134,000 CIA 1189 IV-14 7. The petty cash fund of Guiguinto Company on December 31, 2009 is composed of the following: Coins and currencies P14,000 Petty cash vouchers: Gasoline payments 3,000 Supplies 1,000 Cash advances to employees 2,000 Employees check returned by bank marked NSF
5,000 Check drawn by the company payable to the order of the petty cash custodian, representing her salary
20,000 A sheet of paper with names of employees together with contribution for a birthday gift of a co-employee in the amount of
8,000 P53,000
The petty cash ledger account has an imprest balance of P50,000. What is the correct amount of petty cash on December 31, 2009? a. P34,000 c. P39,000 b. P14,000 d. P42,000
1. On December 31, 2009, the cash account of Jen Company has a debit balance of P3,500,000. An analysis of the cash account shows the following details: Undeposited collections P 60,000 Cash in bank-PCIB checking account 500,000 Cash in bank-PNB (overdraft) (50,000) Undeposited NSF check received from a customer, dated December 1, 2009
15,000 Undeposited check from a customer, dated January 15, 2010
25,000 Cash in bank-PCIB (fund for payroll) 150,000 Cash in bank-PCIB (savings deposit) 100,000 Cash in bank-PCIB (money market instrument, 90 days)
2,000,000 Cash in foreign bank (restricted) 100,000 IOUs from officers 30,000 Sinking fund cash 450,000 Listed stock held as temporary investment
120,000 P3,500,000
Cash and cash equivalents on Jens December 31, 2009 balance sheet should be a. P2,760,000 c. P2,885,000 b. P2,810,000 d. P2,935,000 rpcpa/Valix 6-20
2. Diversity Corporation's checkbook balance on December 31, 2009, was P800,000. In addition, Diversity held the following items in its safe on December 31: Check payable to Diversity Corporation, dated January 2, 2010, not included in December 31 checkbook balance
P200,000 Check payable to Diversity Corporation, deposited December 20, and included in December 31 checkbook balance, but returned by bank on December 30, stamped "DAIF." The check was redeposited January 2, 2010, and cleared January 7
40,000 Check drawn on Diversity Corporation's account, payable to a vendor, dated and recorded December 31, but not mailed until January 15, 2010
100,000
The proper amount to be shown as cash on Diversity's balance sheet at December 31, 2009, is a. P760,000 c. P860,000 b. P800,000 d. P975,000 P2 M10 pp. 377 Wiley 07-08
3. The Ingersoll Co.s ledger showed a balance in its cash account at December 31, 2009 of P341,125 which was determined to consist of the following: Petty cash fund P 1,800 Cash in Allied Bank per bank statement with a check for P3,000 still outstanding
168,375 Notes receivable in the possession of a collecting agency
12,500 Undeposited receipts, including postdated check for P5,250 and travelers check for P5,000
89,000 Bond sinking fund cash 63,750 IOUs signed by employees 2,475 Paid vouchers not yet recorded 3,225 Total P341,125
At what amount should Cash on hand and in bank be reported on Ingersolls balance sheet? a. P267,375 c. P331,125 b. P250,925 d. P314,675 RPCPA 1084-AMP 4. The following items were included as cash in the books of Gotch Co.:
Checking account at Security Bank (P1,200) Checking account at BPI 5,335 Checking account at Citytrust used for payment of salaries
5,500 Postage stamps 107 Employees post-dated check 2,300 I.O.U. from an employee 200 A check marked DAIF 1,250 Postal money order 500 Petty cash fund (P324 in expense receipts)
500 Certificate of time deposit with BPI 5,000 A gold ring surrendered as security by a customer who lost his wallet (at market value)
1,500
The correct amount that should be reported as cash is a. P11,835 c. P16,511 b. P11,011 d. P11,511 RPCPA 0592
5. Aguinaldo Corporation had the following transactions in its first year of operations: Sales (90% collected in the first year) P750,000 Disbursements for costs and expenses 600,000 Purchases of equipment for cash 200,000 Proceeds from issuance of ordinary shares
250,000 Payments on short-term borrowings 25,000 Proceeds from short-term borrowings 50,000 Depreciation on equipment 40,000 Disbursements for income taxes 45,000 Bad debt write-offs 30,000
What is the cash balance at December 31 of the first year? a. P 75,000 c. P 85,000 b. P105,000 d. P140,000
6. Pops Co. established a P3,000 petty cash fund. You found the following items in the fund: Cash and currency P1,683.80 Expense vouchers 829.80 Advance to salesman 200.00 IOU from employee 300.00 In the entry to replenish the fund, what amount should be debited to Cash Short and Over? a. P500.00 c. P13.60 b. P300.00 d. P 0 MC7-8 FAR Cabrera, 2005