Cash and Cash Equivalents Sample Problems1. The statement of financial position of Kwarta Company shows cash of 330,820. The following items were found to comprise this total amount: Checking account in Metrobank (outstanding checks as of year-end totaled 15,200) Savings account is Far East bank 105,200.00 30,800.00 Petty cash fund (including expense receipts for 250) 1,500.00 Cash on hand (undeposited sales receipts) 4,200.00 Sinking fund cash 35,000.00 Cash in foreign bank (in equivalent pesos) 65,000.00 Customers' check on hand Traveler's Check 14,000.00 Manager's Check 23,120.00 Short term treasury bills 52,000.00 What is the correct amount of cash? 2. Kuton Company’s checkbook balance at December 31, 2012 was 180,000. In addition, Kuton held the following items in its safe on that date: Check payable to Kuton dated January 2, 2013 in payment of a sale made in December 2012, included in December 31 checkbook balance- 65,000. Check payable to Kuton deposited December 15, but returned by the bank DAIF- 20,000. Check drawn on Kuton’s account, payable to a vendor, dated and recorded on December 30 but not yet mailed to payee as of December 31, 2012- 15,000. What is the correct cash balance of the company? 3. Green Company’s general ledger showed a balance of 2,205,600 in its cash account on December 31, 2012. Included in this balance are the following items: DAIF checks returned by bank Savings account IOUs Postage stamps Bank draft Cash on hand Cash sinking fund Customer's checks dated January 20,000.00 750,000.0 0 1,200.00 600.00 10,000.00 30,000.00 500,000.0 0 5,400.00 40 remained in the fund. 2012.400.000. 2012. The company’s reporting period ends on June 30. 2012 IOU from Joe Santos.00 What is the amount of cash shortage? Prepare the adjusting entry for the end of the month.00 3. the count of cash on hand indicated that 670. At the end of the month.000.000.450. A review of the petty cash vouchers disclosed the following expenses had been incurred during the month: Office supplies Transportation Postage Miscellaneous Representation 341.2013 Travel advances Traveler's Checks 4.00 1.00 837.00 2. you found the following composition of its petty cash fund: Bills and coins counted Approved and signed petty cash vouchers Dated June 2012 Dated July 1-4. dated July 15. Jennifer Incorporated established a petty cash fund of 5.00 The petty cash fund has an imprest balance of 10.40 780. 5.000. What is the correct balance of the petty cash fund? How much is the cash shortage or overage? Prepare the adjusting entry for June 2012 .00 800.000. 2012 2.60 1. an employee A check drawn by Juvy Victoria.00 8. an employee.00 What is the correct balance of cash? 4.000 for incidental expenses on June 1. In your cash count of the petty cash fund of Canyon Company as of July 4.321.300.60 1. 000.00 1.000.341.475.00 387. Assuming no other errors were noted. You have assembled the following information for the month of March: Cash balance per books.6. you discover the following for the month of December 2012: Balance per bank statement Balance per books Receipts not yet deposited Bank service charge Customer's check returned by bank marked DAIF 400. 2012? .00 What is the amount of cash shortage? 7.40 9. March 31 Bank service charge for March 115.00 22.963.00 2.000.703. March 31 Outstanding checks.80 92.000.00 100.00 334. what is the amount of the outstanding checks at December 31.709.000. You are attempting to determine an apparent cash shortage that you believe resulted from an employee’s theft.000.00 A paid check for 40.000.000 was recorded in the cash book as 4.70 246. March 1 Cash receipts for March per books Cash disbursements for March per books Cash balance per bank statement. In reconciling the book and bank balance of the cash account of Perlas Corporation. March 31 Deposit in transit.10 15. 0 0 Receipts not yet deposited 21. Customer check for P5.311.8.5 0 158.925. No sufficient fund checks in the amount of P5.500. Interest for P625 chargeable to Jennyfer Services was erroneously charged by the bank to the company.620. 2012 was found to be uncollectible.195. Prepare a proof of cash.947 deposited on December 28.0 0 Other information: Receipts and disbursements per books during December are P1.00 Outstanding checks 40.200 in error.0 0 32.850 and P1. Total credits reflected in the bank statement amounted to P1. No entry was made on the books for the return or redeposit.986.000 was returned by the bank and redeposited by the company during December. respectively.771.300 recorded by depositor as P3.525.065.536.0 0 4.191.0 0 35.00 5.00 Balance per books Bank service charges Interest credit by bank 295. .925.270. Check #137412 for P2.0 0 294.50.00 31-Dec-12 148.072. The following data related to Jennifer Services Incorporated were gathered: Balance per bank statement 30-Nov-12 270. 000 2.650.000.000.000 b.000.000. P 7.payroll account Cash on Hand Cash in Bank.000. 2012 in payment of accounts payable was recorded and mailed on December 28.250. On December 31.000. P 9.000. 2012 4.000. dated January 15. P 6. 2011? a.000 3. P 5.650. 2012. 2011.000 c. Tigres Company had the following cash balances: Cash in Bank Petty Cash Fund Time Deposit. P 5.000.00 A check of P 100. 2011? a. 2011 to mature on February 1. How much “cash and cash equivalents” should be reported on December 31.000 which included the following: Petty Cash Fund 50. The “cash” account in Jen Company’s ledger on December 31. P 8.000.450.000.000 d. 2011 showed a balance of P 5. 2012 Saving Deposit 5.00 50.current account Cash in Bank.000 b.000 d.00 1.800. one year. Leona Company had the following account balances on December 31.00 1.000.550.000. P 6.000.800. What should be reported as “cash and cash equivalents” on December 31.000 customer check payable to Leona Company.restricted for equipment acquisition on 2012 Treasury bill purchased November 1.000.000 dated January 15.800.000. 2011: Cash in Bank.00 500.00 2.0 0 .500. due March 1.00 500.000 c.1.00 1. P 5. 2011.00 The cash on hand includes a P 200. 00 On April 30. 2012 5.0 0 150. 2011: Cash on Hand and in Bank Cash restricted for bond payable due on June 30. P 3.0 0 950.000 b.000. not yet recorded IOUs signed by employees At what amount should Jen Company report as “cash” in the December 31. P 7. the fund contained the following: Currency and coins Receipts for office supplies Receipts for postage still unused Receipts for transportation 3.000. 00 1. P 4.000.000 c. 00 2. 00 10.0 0 1.300.0 0 4. P 12. P 6. P 13.000. 2011. P 3. 2011 statement of financial position? a. 00 1.000 b.000.000. 2011 statement of financial position.00 6. P 4.600 c.000. including a post-dated customer check of P200.000 c. What is the amount of replenishment under the imprest fund system? a. P 14.000.000. the following data are gathered: Balance per book Bank charges Outstanding checks Deposit in transit Customer note collected by bank 4.000.000 b.000.000 5.000. 00 Cash in Bank Cash in Sinking Fund Expenses paid out of collections.000.000 d. P 10. P 3.0 0 5.650.000 4.000.650.000.050. 00 .000.000.000.0 0 2.000.000.00 In the December 31. 2013 Time Deposit Saving deposit set aside for dividend payable on June 30.250. On April 30.200.Undeposited receipts.000.500.000 d.000 1.000.000 d. P 11. Enipr Company had the following account balances at December 31.0 0 600.000 by writing a check drawn against the general checking account.000.00 1. During the audit of Maganda Company on December 31.000.000. the entity wrote a check to replenish the fund.000.850. On April 1.000 6. Jennifer Company established an imprest system petty cash fund for P 10. what total amount should be reported as “cash and cash equivalents”? a.000.000.500. 00 250.00 2. 250. P 4.000.000 c.000. 00 .0 0 1.300. a.Interest on customer note Customer check returned NSF Depositor's note charged to account The correct cash balance amounts to ____.0 0 250.000 60.000 d.000.000 b.000. P 4.300.000. P 4. P 5.
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