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The Review School of Accountancy

PREWEEK LECTURE

.: IITANCIAL ACCOUNTING AND REPORTING(FAR) C, U berita/C. Espenilla/G.Macii riola

reto Company reported a Cash and Cash Equivalent balance of P-2,375,OADron Dec. 2016 which consisted of thq following:
I Petty cash fund ( of which P 78O is unreplenished vouchers for expenses; 8150 is IOU
I not€s and remaining currencies and coins amounting to P-3-80-0), 5,000 c: -',
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-cash ?.'t
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account in a different bank
Cash on hand including customers'postdated checks of P 6,500-
Cash in Bank, Administrators payroll account, after checks amounting to Pl25,000 dated 750,000
| ,'; a.
Dec. 31. 2016 but Unrqlg?qgd aS of Dec. 3i, 2015
Savings deposit, earmarketfToi' the acquisition of building which are expected to be 600,000 l,'j
disbursed withiq 6 rlgnthsfrom reporting date Ii
Money market instrument purchased on December 25, 2016 maturing on April 25,20L7
Cash in bank, General account B, incltding unrestricted compensating balances of
P200,000

1" How much !s the correct amount of Cash and C_ash -Equivalents to be shown in
Position at December 31, 2015?
a. t,8t7,570 c. 7,692,570
b. 1,617,300 d. 1,817,300
The Petty cash fund or Storm Trading atthe end of December 31, 2016 is composed of the following:
.\
L--'€na.es e.c co 4s 3,200
- -:-a3 ie.1iShff fa C \ CuChe.S
S -::.. es 600
Trars},?:tatrcn 100
iCu :-om er,Proyee 300
t.rnused supplres "' . '' I
50
. Check Orawn by a sales.staff dated.Jan.e ZOf Z 500
'' ' '. Check arawn by a customei'ctated Oec.'i6, zOrc 1,450
Check dr-awn by an office director dated Dec. 30, 2016 1,900
Envelope ccntaining cash contributions from employees for a
thanksgiving party ( currencies attacheC ) 800

The ger:erar ledger balance of the imprest petty cash fund at December 31, 2016 is P10,000.

2. How much is the corect petty cash fund at December 31, 2016?
a. 8,500 c. 3,200
b. 5,100 d. 6,55O
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3. How much is the cash shortage/overage? i..)-
a. 3,400 c. 3,350
b. 1,100 d. 1,000
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The fotlowing bank reconciliation is presented for Sr:ntinel Company for the month of July 2017:
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Balance per bank statement, 7/31 P 1B0,0OO r'r' : ' la 'l ,

Add: Deposits in transit 40.000 :' ,..,",

1,.i,,, (. /'l '
"
Total p 22A,OOO (, . ! .: ,.
Less: Outstanding checks P 60,000 ;
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Bank credit recorded in error 1gp0Q _ 70.000
Balance per books,7lll P 15O,OOO
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Data per bank statement for the month of August 2017 follow: I d.,
'
l":!..
August deposits, including note for P 50,000 collected in behalf of Sentinel Conrpany P 275,OOO .
August disbursements ( including NSF for P 35,000 and service charges of P 1,500) 220,000

All items that were outstanding as of July 31 cleared through the bank in August, including the bank credit. In addition,
P25,000 in checks were outstanding and deposits of P 35,000 were- in tran,sit as of August 3l: z1OL;/..
fl i;
4. How much is the adjusted disbursements for the month of August?
a. 183,500 c. 185,000
b. 175,000 d. 195,000 i:, t
. 5. How much is the correct cash balance on August 3Lt 2(J77? r

a. 245,OOO c.231,500
b. 270,ooo d. 235,000

PREWEEK-FAR ( BATCH 34 )
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