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Intermediate Accounting I

Cash and cash equivalents

Problems:

1. Consider the following: Cash in Bank – checking account of P18,500, Cash on hand of P500, Post-dated
checks received totaling P3,500, and Certificates of deposit totaling P124,000. How much should be
reported as cash in the balance sheet?

2. Meliodas Company has cash in bank of P15,000, restricted cash in a separate account of P3,000, and a
bank overdraft in an account at another bank of P1,000. Meliodas should report cash of?

3. Casper Company has the following items at year-end:


Cash in bank P30,000
Petty cash 300
Short-term paper with maturity of 2 months 5,500
Postdated checks 1,400

Casper should report cash and cash equivalents of

4. Harlequin Company month-end bank statement shows a balance of P72,000, outstanding checks are
P24,000, a deposit of P8,000 was in transit at month end, and a check for P1,000 was erroneously
charged by the bank against the account, the correct balance in the bank account of Harlequin Company
at month end is?

5. Finley, Inc.’s checkbook balance on December 31, 2018 was P42,400. In addition, Finley held the
following items in its safe on December 31.
(1) A check for P900 from Peters, Inc. received December 30, 2018, which was not included in
the checkbook balance.
(2) An NSF check from Garner Company in the amount of P1,800 that had been deposited at the
bank, but was returned for lack of sufficient funds on December 29. The check was to be
redeposited on January 3, 2019. The original deposit has been included in the December 31
checkbook balance.
(3) Coin and currency on hand amounted to P2,900.

The proper amount to be reported on Finley's balance sheet for cash at December 31, 2018 is?

6. The cash account shows a balance of P90,000 before reconciliation. The bank statement does not
include a deposit of P4,600 made on the last day of the month. The bank statement shows a collection by
the bank of P1,880 and a customer's check for P640 was returned because it was NSF. A customer's
check for P900 was recorded on the books as P1,080, and a check written for P158 was recorded as
P94. The correct balance in the cash account was?

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7. Escanor Plastics Company deposits all receipts and makes all payments by check. The following
information is available from the cash records:

MARCH 31, 2019 BANK RECONCILIATION

Balance per bank P26,746


Add: Deposits in transit 2,100
Deduct: Outstanding checks (3,800)
Balance per books P25,046

Month of April Results


Per Bank Per Books
Balance April 30, 2019 P27,995 P27,355
April deposits 11,784 13,889
April checks 11,100 10,080
April note collected (not included in April deposits) 3,000 -0-
April bank service charge 35 -0-
April NSF check of a customer returned by the bank
(recorded by bank as a charge) 900 -0-

Instructions
(a) Calculate the amount of the April 30, 2019:
1. Deposits in transit
2. Outstanding checks
(b) What is the April 30, 2019 adjusted cash balance?

8.

JHA 2019 Exclusive Copy

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