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# Practice Set: Financial Accounting - Cash and Cash Equivalents Problem #1: The accounting staff of ABC, Inc.

recorded the following entries during the year: Dec. 5, 2013 Cash Sales To record cash sales. Cash Accounts receivable To record collection Accounts receivable Sales To record sales on account 500,000 500,000

250,000 250,000

## Dec 30, 2013

50,000 50,000

Upon examination by the Accounting Supervisor of the supporting documents of the above transaction, the following data were revealed: a. The official receipt supporting the cash sales discloses that the actual sales amounted only to P = 50,000. b. The collection on December 27, 2013 pertains to a post-dated check amounting to P = 300,000. The staff erroneously credited the customers account by P = 250,000. This was deposited on December 30, 2013 but was credited in the Companys account on January 4, 2013. c. The sale on account was collected in January 15, 2014. The unadjusted book balance of the Companys cash amounted to P = 7,000,000 which includes cash deposited in BDO amounting to P = 200,000 approved by the Board of Directors (BOD) of for future plant expansion. How much is the adjusted cash as of December 31, 2013? --------------------xxxxxxxx-------------------Problem #2: As of October 31, 2013, the fiscal year-end of XXX, Inc., the Companys records and supporting documents revealed the following data: Passbook balance as of October 31, 2013 Cash per unadjusted Trial Balance as of October 31, 2013 Deposit in transit Bank charges recorded by the Company in November 2013 Interest from bank deposits (recorded by the Company in November 2013) Outstanding check P = 500,000 200,000 250,000 3,000 30,000 600,000

Additional data: a. The outstanding check includes post-dated (December 5, 2013) check amounting to P = 300,000. b. Included in the deposit in transit is a post-dated check issued by the customer amounting to P = 50,000. The check can only be encashed starting November 3, 2013. c. The bank credited the Companys account by P = 500,000 on November 3, 2013 for the loan it applied in October 30, 2013. d. The company erroneously recorded a cash sales amounting to P = 173,000 as follows: Accounts Receivable 173,000 Sales 173,000 To record cash sales. What is the adjusted cash balance as of October 31, 2013? --------------------xxxxxxxx--------------------

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There is a great difference between knowing and understanding it . Charles Kettering

Practice Set: Financial Accounting - Cash and Cash Equivalents Problem #3: Cash in bank BDO account # xxxx144 P = 500,000 Cash in bank BDO account # xxxx143 (250,000) Cash in bank BDO account # xxxx142 65,000 Cash in bank CBC account # xxxx143 (300,000) Cash in bank BPI account # xxxx143 250,000 Petty cash fund 10,000 Cash in bank UCPB account # xxxx144 6,000,000 Cash in bank UCPB account # xxxx143 (2,000,000) Cash in bank UCPB account # xxxx142 10,000,000 Cash in bank UCPB account # xxxx141 (payroll account) 80,000 Coins 2,000 Treasury shares 80,000 Money markets purchased last January 5, 2012 (maturity: January 1, 2014) 9,000,000 Money markets purchased last December 5, 2013, 160 days (maturity: March 1, 2014) 8,000,000 Notes: a. UCPB account # xxxx142 is restricted for future plant expansion. b. BDO account # xxx142 serves as guarantee deposit for the Companys loan amounting to P = 5,000,000. This is restricted for withdrawal. How much is the adjusted cash and cash equivalents of LOL as of December 31, 2013? --------------------xxxxxxxx-------------------Problem #4: Passbook balance as of October 31, 2013 Cash per unadjusted Trial Balance as of October 31, 2013 Deposit in transit Bank charges recorded by the Company in November 2013 Interest from bank deposits (recorded by the Company in November 2013) Outstanding check

## P = 500,000 200,000 20,000 3,000 27,000 ???

Additional data: a. Included in the outstanding checks is check #143333 amounting to P = 50,000 released to payee in November 4, 2013. How much is the adjusted outstanding checks as of October 31, 2013? --------------------xxxxxxxx-------------------Problem #5: Coins P = 20,000 Cash in bank - BDO 150,000 Cash in bank - BOT (100,000) Cash in bank Security Bank 200,000 Receivable from employee 10,000 Accounts Receivable collected in December 31, 2013 not yet recorded in the books 200,000 a. The Cash in Bank Security Bank is restricted for withdrawal. b. The collected Accounts Receivable includes post-dated check (January 15, 2014) amounting to P = 30,000. 1. How much is the adjusted balance of cash and cash equivalents as of December 31, 2013? 2. How much will be presented as noncurrent asset as of December 31, 2013?

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There is a great difference between knowing and understanding it . Charles Kettering