Name:

Year&Section:

CASH AND CASH EQUIVALENTS

PROBLEM 1
Pikachu Company shows the following account balances in their financial records as of December
31, 2016:
Checking account at BDO Bank

P (20,000)

Checking account at BPI Bank

500,000

Payroll account- Eastwest Bank

100,000

Foreign bank account restricted

750,000

Postage stamps
Employees postdated checks

22,000
30,000

I.O.U. from presidents brother

75,000

Travelers check

50,000

No sufficient funds bank

18,000

Petty cash fund ( P16,000 in current and expenses receipts for

P84,000)
Cashiers check

100,000
36,000

1. What is the correct cash balance to be reported in the statement of financial

position of Pikachu Company on December 31, 2016?
PROBLEM 2
On December 31, 2016, Piplup Company has the following information concerning its cash
and cash equivalents and some other items:
Coins and currency
Checks received from customers
Certificate of deposits, term 12 months
Petty cash fund
Postage stamps
Bank A, checking account balance
Postdated checks from customer
Money order from customer
Cash in savings account
Bank draft from customer
Utility deposit to gas company, refundable
Cash advance received from customer
NSF check, C Company
Cash advance to company executive, collectible upon
demand
Bank B, checking account, overdraft
IOUS from employees

P 50,000
600,000
800,000
4,000
600
2,100,000
10,000
15,000
100,000
40,000
5,000
8,000
20,000
200,000
20,000
12,000

2. What amount of cash and cash equivalents should Piplap Company report in its
December 31, 2016 statement of financial position?
PROBLEM 3
The trial balance of Charmander Company at December 31, 2016 includes the following
accounts:
Petty cash fund P15,000; Cash on hand 190,700; Metrobank current account P310,200;
Allied Bank current account #1 P320,000; Allied bank current account #2 P40,000 credit;
Security Bank savings account P150,000.
Additional information:
a. The petty cash fund consisted of the following:
Currency and coins, P8,500
Employees advances, P1,800
Currency in an envelope marked collections for charity with employees names
attached, P2,000
Unreplenished petty cash vouchers, P2,240

Replenish check drawn by Charmander Company payable to the petty cashier,

P2,230

b. Cash on hand includes the following items:

Customers check for P30,000 returned by bank on December 26, 2016 due to
insufficient funds, but subsequently redeposited and cleared by the bank on January
17, 2017
Postal money orders received from customers, P18,000
Customers check for P15,000 dated January 10, 2017 received on December 23,
2016
c. Included among the checks drawn by Charmander Company against Metrobank current
account and recorded in December 2016 are the following:
Check no. 1214 written and dated December 22, 2016 and delivered to payee on
January 03, 2017, P25,000
Check no. 1219 written December 26, 2016 dated January 30, 2017, and delivered
to payee on December 28, 2016, P 43,000
d. The credit balance in Allied Bank current account #2 represents check drawn in excess of
the deposit balance that are still outstanding at December 31, 2016. A right to offset
exists
in
the
agreement
between
Allied
Bank
and
its
depositors.
e. The savings account deposit in Security Bank was set aside by the Board of Directors for
the acquisition of new equipment. This amount is expected to be reimbursed in the next
three months from December 31, 2016.
3. What is the correct petty cash balance reported in December 31, 2016
statement of financial position?
4. What is the total amount reported in Charmanders December 31, 2016
statement of financial position as cash on hand and in banks?
PROBLEM 4
Squirtle Company had the following transactions all throughout the year 2016 which is its first
year of operation:
Sales (90% collected in first year)
Bad debt written-off
Disbursement for cost and expenses
Disbursements for income taxes
Purchases of fixed assets
Depreciation on fixed assets
Proceeds from issuance of ordinary share
Proceeds from short-term borrowings
Payments on short-term borrowings

P 1,500,000
60,000
1,200,000
90,000
400,000
80,000
500,000
100,000
50,000

5. What is the cash balance at December 31, 2016?

PROBLEM 5
The books of Togepi Company disclosed a cash balance of P691,720 on June 30. The bank
statement as of June 30 showed a balance of P556,800. Additional information that might be
useful in reconciling the two balances follows:
a. Check no.128 for P13,000 was erroneously recorded in the check register as P30,000
b. A customers note dated March 31 was discounted on April 12. The note was dishonored
on June 29 (maturity date). The bank charged Togepis account for P142,650, which
includes a protest fee of P420
c. The deposit of June 24 was recorded on the books as P28,950 but it was actually a deposit
of P29,850
d. Outstanding checks totaled P98,850 as of June 30
e. There were bank service charges for June of P2,100 not yet recorded on the books
f. Togepis account had been charged on June 26 for a customers NSF check for P12,960
g. Togepi properly deposited P6,000 on June 30 that was not recorded by the bank
h. Receipts of June 30 for P134,250 were recorded by the bank on July 2
i. A bank memo stated that a customers note for P45,000 and interest of P1,650 had been
collected on June 27 and the bank charged a P360 collection fee

6. How much is the correct cash balance at June 30?

7. How much is the net adjustment to the cash account?

PROBLEM 6
Below is the bank reconciliation of Bulbasaur Company for July 2016:
Balance per bank, July 31, 2016

P 750,000

Add: Deposit in transit

120,000

Total

P870,000

Deduct: Outstanding Checks

P140,000

Erroneous bank credit

50,000

Cash balance per books, July 31,

2016

190, 000
P680,000

The bank statement for August 2016 contains the following data:
Total deposits P550,000; Total charges (including NSF check of P40,000 and service charge of
P2,000) P480,000. All outstanding checks on July 31, 2016 including the bank credit were
cleared in the bank in August 2016. There were outstanding checks of P150,000 and deposits in
transit of P190,000 on August 31, 2016.

8. How much is the unadjusted cash balance per books on August 31, 2016?
9. How much were the cash receipts per books during August 2016?
10.

How much were the cash disbursements per books during August 2016?

11.

What is the correct cash balance at August 31, 2016?

PROBLEM 7
Ninetails Company is preparing its March 31 bank reconciliation. The following data are available:
March data
Balance, February 28
March deposits reflected
March checks reflected

Per bank

Per books

P859,500
476,000

P839,600
490,000**

(617,000)*

(610,000)

Note collected (including P2,000

interest)
Service charge

202,000

Balance, March 31

919,300

(1,200)
719,600

From the February 28 bank reconciliation:

Deposits in transit, P18,200
Oustanding checks, P38,100
*Erroneously includes a check drawn by Ninetails company for P15,000
**Includes a collection of P20,800 recorded erroneously. The correct amount of P28,000 was
properly reflected in the bank statement.

12.

The deposit in transit at March 31 is?

13.

What is the amount of outstanding checks at March 31?

14.What is the correct cash balance at March 31?