You are on page 1of 2

Name: ______________________________

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

You might also like