60.

An account of the petty cash fund showed its composition as follows:

Coins and currency 2,000
CASH AND Paid vouchers
Transportation
Gasoline
600
400
CASH EQUIVALENTS
Office supplies 500
Postage stamps 300
Due from employees 1,200 3,000
Employee’s check returned by bank marked “DAIF” 1,000
CASH BALANCE Check drawn by the company to the order of the petty cash custodian
Petty Cash Fund 4,000
1. Mr. Tomas Y. Lang, a businessman friend, has requested your help in explaining and solving What is the correct amount of petty cash fund?
the following problems that confront his company, the T.Y. Lang Corp. A cash count on A. 6,000 C. 9,000
January 2, 1976 showed the following items in the petty cash box: B. 7.000 D. 10,000
Currency and coins counted P 12.56
Envelope containing contributions to employees party 90.00 1. The ledger account for petty cash of MARTY Co. as of December 31, 1990 showed a balance
Petty cash vouchers approved 14.50 of P3,000. However, the following items were found in the petty cash box:
Employees’ IOUs 180.00 Currency and coins P1,019.20
Company check for fund replenishment 92.00 Vale slips from employees 535.00
The petty cash fund was established for an amount of P300.00. An envelope containing cash collections to be donated to
What is the correct amount of petty cash for the balance sheet as of the end of the year earthquake victims by employees wit list of names
December 31, 1975? (E) attached 115.00
A. P300 C. P104.56 Petty cash vouchers paid:
B. P12.56 D. Some other answer. RPCPA 1076 Telegram charges P 58.00
Office supplies 134.00
1. Account of the petty cash fund of XYZ Company showed its composition as follows: Transportation 124.50
Coins and currency 3,300 Postage stamps 74.00 390.50
Paid vouchers: Check of an employee post-dated Jan. 5, 1991 200.00
Transportation 600 Employee’s check marked NSF Jan. 5, 1991 350.00
Gasoline 400 Check drawn by MARTY Co. to petty cash 500.00
Office supplies 500 TOTAL P3,019.70
Postage stamps 300 What is the correct amount of petty cash fund that should be shown on the balance sheet as of
Due from employees 1,200 3,000 December 31, 1990? (E)
Manager’s check returned by the bank marked “NSF” 1,000 A. P1,404.20 C. P1,634.20
Check drawn by company to the order of petty cash custodian 2,700 B. P1,519.20 D. P1,524.50 RPCPA 1091
What is the amount of the petty cash fund for balance sheet purposes? (E)
A. 10,000 C. 6,000
B. 7,000 D. 9,000 RPCPA
14. The petty cash fund of Becky Company on December 31, 2008 is composed of the following:  Check of P7,000 payable to King Co. The check was dated December 29 but still
Coins and currencies 16,000 undelivered as of December 31.
Petty cash vouchers: What is the correct cash balance at December 31, 2012? (E)
Postage stamps 2,000 A. P75,000 C. P97,000
Supplies 3,000 B. P89,000 D. P99,000 R & E 2012
Cash advances to employees 4,000
Employee’s check returned by bank marked NSF 5,000 Cash on Hand & in Banks
Check drawn by the company payable to the order of Cash on Hand & in Bank
Ms. Bobadilla, petty cash custodian, representing her salary 15,000 Cash on hand, cash in bank
A sheet of paper with names of employees together with contribution 3. Consider the following: Cash in Bank – checking account of $13,500, Cash on hand of $500,
for a birthday gift of a co-employee in the amount of 5,000 Post-dated checks received totaling $3,500, and Certificates of deposit totaling $124,000. How
Total 50,000 much should be reported as cash in the statement of financial position? (E)
The petty cash ledger account has an imprest balance of P50,000. What is the correct a. $ 13,500. c. $ 17,500.
amount of petty cash on December 31, 2008? b. $ 14,000. d. $131,500. KW&W 1e
A. 16,000 C. 36,000
B. 31,000 D. 50,000 Siy 4. Diamond Company had the following account balances at December 31, 2012:
Cash in banks P2,250,000
Cash in Banks Cash on hand 125,000
Composition Cash legally restricted for additions to plant
89. Kennison Company has cash in bank of $10,000, restricted cash in a separate account of (expected to be disbursed in 2013) 1,600,000
$3,000, and a bank overdraft in an account at another bank of $1,000. Kennison should report Cash in banks include P600,000 of compensating balances against short-term borrowing
cash of (E) arrangements. The compensating balances are not legally restricted as to withdrawal by
a. $9,000. c. $12,000. Diamond.
b. $10,000. d. $13,000. KW&W 1e In the current assets section of Diamond’s December 31, 2012 statement of financial position,
total cash should be reported at (E)
91. Lawrence Company has cash in bank of $15,000, restricted cash in a separate account of A. P1,775,000 C. P2,375,000
$4,000, and a bank overdraft in an account at another bank of $2,000. Lawrence should report B. P2,250,000 D. P3,975,000 R & E 2012
cash of (E)
a. $13,000. c. $18,000. Comprehensive
b. $15,000. d. $19,000. KW&W 1e 6. The following pertains to Megatron, Inc. on December 31 of the current year: Checking
account balance P925,000; an overdraft in special checking account at same bank as normal
Cutoffs checking account of P17,000; certificate of deposit P400,000; cash held in a bond sinking fund
2. The Cash account of Island Corp. has a balance of P96,000 on December 31, 2012. Your P200,000; postdated check from customer P11,000; certified check from customer P9,800;
review of the cash transactions recorded in December revealed the following: NSF check received from customer P15,000; cash advance to subsidiary of P300,000;
Cash receipts included customer’s checks for P4,000 dated January 10, 2013. postage stamps on hand P620; utility deposit paid to electric company P8,000; currency and
Cash disbursements included: coins in a petty cash fund (the company has not replenished the fund to the imprest amount of
 Check of P10,000 payable to Ace Company. The check, dated December 23, was P5,000) P800. The correct amount that should be reported as cash is (M1)
delivered to Ace on December 24, but had not been paid by the bank as of December 31. A. P908,800 C. P1,318,600
B. P918,600 D. P1,322,800 Cabarles
 Traveler’s check for P10,000 178,000
1. The balance sheet of Maligaya Co. as of December 31, 1981 showed the cash account of Bond sinking fund – cash 127,500
P87,300. It was found to have included the following items: IOUs signed by employees 4,950
 Postal money orders from customers P2,400 Paid vouchers, not yet recorded 6,450
 Notes receivable in the possession of a collecting agency, P3,200 Total P682,250
 Receipts for expenses advanced for the account of certain suppliers, P1,600 At what amount should “Cash on hand and in bank” be reported on Ruby Company’s
 Customers’ post-dated checks, P1,500 statement of financial position? (M)
 Customers’ checks returned by the bank marked “No sufficient funds,” P1,800 A. P501,850 C. P629,350
 Currencies and coins on hand, P600 B. P507,850 D. P662,250 R & E 2012
 Traveler’s check, P500
 Checks in payment of accounts, ready for issuance and recorded on December 31, 1981 3. Integrity Company had the following account balances at December 31, 2009:
but still in the safe of the cashier awaiting instructions for delivery to payees, P6,000 Cash in bank 5,000,000
 Petty cash fund, (P160 in currency and expense receipts for P840), P1,000 Cash on hand 200,000
The correct cash account balance for the balance sheet is (M) Time deposits 500,000
A. P82,500 D. P72,360 Cash as bond sinking fund due June 30, 2010 1,000,000
B. P76,500 E. P78,360 Cash legally restricted for additions to plant
C. P81,660 RPCPA 0582 (expected to be disbursed in 2010) 2,000,000
Cash as preferred stock redemption fund
4. Mariela Company provided following information on December 31,2012: (redemption date October 31, 2010) 2,500,000
Cash in bank per book
 7,300,000 Cash in bank includes P1,000,000 of compensating balance against short-term borrowing
Cash in bank per bank statement 7,000,000 arrangement. The compensating balance is not legally restricted as to withdrawal by Integrity.
Deposit in transit 1,200,000 In the current assets section of the December 31, 2009 balance sheet, total cash should be
Outstanding checks (including certified check of P200,000) 1,500,000 reported at
Deposit in other bank closed by BSP
 1,500,000 A. 6,200,000 C. 8,700,000
Currency and coins on hand 600,000 B. 6,700,000 D. 11,200,000 Siy
Petty cash fund
 50,000
DAIF checks of customers returned by bank
 500,000 Cash equivalent
Error in recording a check in the book. The correct amount as paid 17. SURE I’LL PASS CORPORATION held the following investments at year-end and you are to
by the bank is PI00,000 instead of P200,000 as recorded in the book 100,000 compute the cash and cash equivalents:
What is the total “cash” to be reported as current asset on December 31, 2012?  2,000 shares of Holdings, common stock purchased at P45 per share with a current
A. 6,900,000 C. 7,300,000 market value of P49.50 per share.
B. 7,000,000 D. 7,550,000 CPAR 1012  P10,000 worth of commercial paper from BA Finance paying an interest rate of 8%. The
commercial paper matures in 45 days.
5. The Ruby Company’s ledger showed a balance in its cash account at December 31, 2012 of  P50,000 in Treasury bills due in 3 months.
P682,250, which was determined to consist of the following:  50,000 shares of Republic Pair Common Stock purchased about a year-and-a-half ago at
Petty cash fund P 3,600 P33.75 per share. Year-end market value is P31,25 per share.
Checking account in Metrobank (check of P6,000 is still outstanding) 336,750  10,000 shares of TAIPAN, a small corporation owned by the brother of the president of
Notes receivable in the possession of a collecting agency 25,000 SURE I’LL PASS. The shares were purchased several years back at P10. Current value
Undeposited receipts, including a postdated check for P10,500 and can not be determined. (E)
 A. None. C. P60,000 Cash on hand and in bank P2,500,000
B. P150,000 D. P50,000 RPCPA 0595 Cash restricted for bonds payable due on June 30, 2012 1,000,000
Time deposit 3,000,000
Cash in bank & cash equivalent Savings deposit set aside for dividends payable on June 30, 2012 500,000
6. Logistics Company had the following items listed in its trial balance at 12/31/11: The total amount to be reported as cash and cash equivalents as of December 31, 2011 is
Balance in checking account, Bank of the East $442,000 A. P5,500,000 C. P6,500,000
Treasury bills purchased on 11/1/11, mature of 1/30/12 20,000 B. P6,000,000 D. P7,000,000 Cabarles
Loan payable, long-term, Bank of the East 300,000
Included in the checking account balance is $50,000 of restricted cash that Bank of the East 7. Ira Company had the following cash balances on December 31, 2004:
requires as a compensating balance for the $300,000 note. What amount will Logistics include Petty cash fund -reimbursed on December 31, 2004 50,000
in its year-end balance sheet as cash and cash equivalents? (D) Cash on hand - undeposited coins and currencies 1,500,000
A. $412,000. C. $392,000. Cash in bank - unrestricted demand deposit account 4,000,000
B. $462,000. D. $442,000. S&S 6e Cash in bank - time deposit due January 15, 2005 2,000,000
Cash in bank - money market placement 1,000,000
7. Cook Co. had the following balances at December 31, 1992: The company had drawn and recorded checks amounting to P500,000 on December 15, 2004
Cash in checking account $350,000 in payment of accounts payable but the checks are not scheduled to be mailed until January
Cash in money-market account 250,000 15, 2005. In exchange for a guaranteed line of credit, Ira has agreed to maintain a minimum
U.S. Treasury bill, purchased 12/1/92, maturing 2/28/93 800,000 balance of P300,000 in its unrestricted demand deposit account. How much should Ira report
U.S. Treasury bill, purchased 3/1/92, maturing 2/28/93 500,000 as cash and cash equivalents on December 31, 2004? (M)
Cook’s policy is to treat as cash equivalent all highly-liquid investments with a maturity of three A. 7,050,000 C. 9,050,000
months or less when purchased. What amount should Cook report as cash and cash B. 6,750,000 D. 8,050,000 CPAR
equivalents in its December 31, 1992, balance sheet? (E)
A. $600,000 C. $1,400,000 9. The December 31, 2004 trial balance of Yasmin Company includes the following accounts:
B. $1,150,000 D. $1,900,000 AICPA 0593 Petty cash fund 50,000
Current account –First Bank 4,000,000
Current account-Second Bank (overdraft) ( 250,000)
8. Pygmalion Company had the following account balances on December 31, 2004: Money market placement-Third Bank 1,000,000
Cash in bank – current account 5,000,000 Time deposit-Fourth Bank 2,000,000
Cash in bank – payroll account 1,000,000  The petty cash fund includes unreplenished December 2004 petty cash expense
Cash on hand 500,000 vouchers for P15,000 and an employee check for P5,000 dated January 31, 2005.
Cash in bank – restricted account for building  A check for P100,000 was drawn against First Bank current account dated and recorded
construction expected to be disbursed in 2005 3,000,000 December 29, 2004 but delivered to payee on January 15, 2005.
Treasury bills, purchased December 15, 2004 and due March 15, 2005 2,000,000  The Fourth Bank time deposit is set aside for land acquisition in early January 15, 2005.
The cash on hand includes a P200,000 check payable to Pygmalion, dated January 15, 2005. The December 31, 2004 balance sheet should report “cash and cash equivalents” at (E)
What should be reported as “cash and cash equivalents” on December 31, 204? (M) A. 5,130,000 C. 4,130,000
A. 6,300,000 C. 6,500,000 B. 5,150,000 D. 4,880,000 Valix
B. 8,300,000 D. 8,700,000 Valix
2. Ralf Corporation had the following account balances at December 31, 2011:
10. Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/11: 12. Smartchip Corp. has supplied the following list of its bank accounts and cash as of its fiscal
Currency & coins $ 650 year-end June 30:
Balance in checking account 2,600 Checking account (compensating balance of $12,000 with no restriction) $ 32,000
Customer checks waiting to be deposited 1,200 Savings account, 5.25% 20,000
Treasury bills, purchased on 11/1/11, mature on 4/30/12 3,000 Certificate of deposit, 6 months, 10% 50,000
Marketable equity securities 10,200 Money market (30-day certificate), current rate, 9.25% 25,000
Commercial paper, purchased on 11/1/11, mature on 1/30/12 5,000 Payroll checking account 2,000
What amount will Cashmere Soap include in its year-end balance sheet as cash and cash Certificate of deposit, 2 years, 12 % 50,000
equivalents? (D) Petty cash 1,000
A. $9,450. C. $7,450. $180,000
B. $12,450. D. $19,650. S&S 6e The amount reported as “cash” account as of June 30 should be (E)
A. $55,000 C. $105,000
3. Baguio Company had the following account balances on December 31, 2003. B. $180,000 D. $75,000 C. Garfinkle
Petty cash fund 50,000
Cash in bank – current account 6,000,000 13. The December 31, 2004 trial balance of Frances Mae Company includes the following
Cash in bank – payroll account 1,500,000 accounts:
Cash on hand 600,000 Cash in hand 500,000
Cash in bank – restricted account for plant additions, Petty cash fund 20,000
expected to be disbursed in 2004 2,000,000 Security Bank current account 1,000,000
Treasury bills, due February 15, 2004 1,000,000 PNB Current account No.1 400,000
The petty cash fund includes, unreplenished December 2003 petty cash expense vouchers of PNB Current account No.2 (50,000)
P20,000 and employee IOUs of P10,000. The cash on hand includes a P100,000 check BSP treasury bill - 60 days 3,000,000
payable to Baguio dated January 15, 2004. What should be reported as “cash and cash BPI time deposit - 30 days 2,000,000
equivalents” on December 31, 2003? (M) Two months treasury bonds 500,000
A. 9,050,000 C. 8,020,000  The cash on hand includes a customer post dated check P100,000 and a postal money
B. 9,020,000 D. 9,520,000 CPAR 4121 order of P40,000.
 The petty cash fund includes unreplenished petty cash vouchers for P2,000 and an
11. The following are held by Smite Co.: employee check for P3,000 dated January 31, 2005.
Cash in checking account $20,000  A check for P200,000 was drawn against Security Bank account, dated January 15, 2005,
Cash in bond sinking fund account 30,000 delivered to the payee and recorded at December 31, 2004.
Postdated check from customer dated one month  The BPI time deposit is set aside for acquisition of land to be used as a factory sire.
from balance sheet date 250 Total cash and cash equivalents on the balance sheet as of December 31, 2004 should be (M)
Petty cash 200 A. 4,965,000 C. 6,965,000
Commercial paper (matures in two months) 7,000 B. 3,465,000 D. 4,775,000 CPAR
Certificate of deposit (matures in six months 5,000
What amount should be reported as cash and cash equivalents on Smite’s balance sheet?
A: $57,200 C: $27,450
B: $32,200 D: $27,200 AICPA R05
BANK RECONCILIATION Balance per bank statement P11,164
Cash balance per books Receipts recorded but not yet deposited in the bank 1,340
NSF, Deposit in Transit, Outstanding Checks Bank charges not recorded 16
47. The August 31 bank statement of Kelvin Inc. showed a balance of $113,000. Deducted in Note collected by bank and not recorded on books 1,120
arriving at this amount was a customer's NSF check for $2,400 that had been returned. Kelvin Outstanding checks 1,100
had received no prior notice concerning this check. In addition to the bank statement, other NSF checks - not recorded on books nor redeposited 160
records showed there were deposits in transit totaling $17,200 and that outstanding checks Assuming no errors were made, compute the cash balance per books on June 30 before any
totaled $10,800. What is the cash balance per books at August 31 (prior to adjustments)? (E) reconciliation adjustments.
A. $121,800 C. $117,000 A. P10,220 C. P11,404
B. $119,400 D. $115,400 S, S & S B. P10,460 D. P12,348 Cabarles
Service Change, Interest, Outstanding Checks Bank Credits, Bank Charges, Deposit in Transit, Outstanding Checks, Book Error
2. How much is the cash balance before adjustments of M&M Co. as of April 30, 1993 if given 1. Stellar Company’s bank statement for the month of December included the following
data as follows: information:
Balance per statement sent by the bank as of April 30 – P2,100; bank service charge for April Ending balance, December 31 2,800,000
(not previously recorded in the books of M&M) – P10; outstanding checks – P200; interest on Bank service charge for December 12,000
bank balance credited by the bank during April (not previously recorded on M&M’s books) – Interest by bank to Stellar for December 10,000
P30; deposit in transit – P400. (E) In comparing the bank statement to its own cash records, Stellar found the following:
A. P2,300 C. P2,280 Deposits made but not yet recorded by the bank 350,000
B. P2,480 D. P2,500 RPCPA 0593 Checks written and mailed but not yet recorded by the bank 650,000
In addition, Stellar discovered that it had drawn and erroneously recorded a check for P46,000
Bank Credits, Bank Charges, Outstanding Checks that should have been recorded for P64,000. What is Stellar’s cash balance per ledger on
14. Sandy, Inc. had the following bank reconciliation at March 31, 2012: December 31? (E)
Balance per bank statement, 3/31/12 P37,200 A. 2,500,000 C. 2,540,000
Add: Deposit in transit 10,300 B. 2,520,000 D. 2,800,000 Siy
47,500
Less: Outstanding checks 12,600 Bank Credits, Bank Charges, Deposit in Transit, Outstanding Checks, Certified Check, Book Error
Balance per books, 3/31/12 P34,900 14. The following information pertains to Bindi Company as of December 31, 2009:
Data per bank for the month of April 2012 follow: Cash balance per bank statement 4,000,000
Deposits P42,700 Checks outstanding (including certified check of P100,000) 500,000
Disbursements 49,700 Bank service charge shown in December bank statement 20,000
All reconciling items at March 31, 2012 cleared the bank in April. Outstanding checks at April Error made by Bindi in recording a check that cleared the bank in December
30, 2012 totaled P5,000. There were no deposits in transit at April 30, 2012. What is the cash (check was drawn in December for P100,000 but recorded at P10,000) 90,000
balance per books at April 30, 2012? (E) Deposit in transit 1,300,000
A. P25,200 C. P30,200 What is the cash balance per ledger on December 31, 2009?
B. P27,900 D. P35,500 Cabarles A. 4,830,000 C. 4,910,000
B. 4,900,000 D. 5,010,000 Siy
Bank debits & credits, NSF checks
2. The information below is from the books of the Seminole Corporation on June 30:
 Disbursements 49,700
Bank Credits, Bank Charges, NSF Checks, Deposit in Transit, Outstanding Checks, Certified All reconciling items at March 31, 2010 cleared the bank in April. Outstanding checks at April
Check 30, 2010 totaled $6,000. There were no deposits in transit at April 30, 2010. What is the cash
15. In your audit of Bora Company as of December 31, 2009, you gathered the following balance per books at April 30, 2010?
information: a. $28,200 c. $34,200
Balance per bank statement 6,000,000 b. $31,900 d. $38,500 AICPA Adapted
Deposit in transit 3,000,000
Outstanding checks 1,200,000 Cash Balance per Bank Statement
Customer’s note collected by bank 750,000 Bank debits, Deposit in transit, outstanding checks, bank error
Customer’s NSF check 147,000 3. The cash in bank account of S-mart, Inc. for April showed an ending balance of P129,298.
Checkbook printing charge 3,000 Deposits in transit on April 30 was P18,200. Outstanding checks as of April 30, were P59,435,
Certified checks included in the outstanding checks 400,000 including a P5,000 check which the bank had certified on April 27. During the month of April,
Depositor’s note charged to account 500,000 the bank charged back NSF checks in the amount of P3,435 of which P1,835 had been
The cash balance per book of Bora Company on December 31, 2009 is (M) redeposited by April 20. On April 23, the bank charged S-Mart’s account for a P2,200 items
A. 7,100,000 C. 8,100,000 which should have been charged against K-mart, Inc., the error was not detected by the bank.
B. 7,600,000 D. 8,200,000 Siy During April, the proceeds from notes collected by the bank for S-Mart, Inc. was P7,548 and
bank charges for this services was P18.
Bank Credits, Bank Charges, NSF Checks, Deposit in Transit, Outstanding Checks, Bank Error How much is the unadjusted balance per bank on April 30?
2. The bank statement of S-mart, Inc. for April 1982 showed an ending balance of P169,263. A. P88,333 C. P169,263
Deposit in transit on April 30 was P18,200. Outstanding checks as of April 30, were P59,435, B. P95,263 D. P173,663 Cabarles
including a P5,000 check which the bank had certified on April 27. During the month of April,
the bank charged back NSF checks in the amount of P3,435 of which P1,835 had been Bank Charges, Co. Error, Deposit in Transit, Outstanding Checks
redeposited by April 20. On April 23, the bank charged S-Mart’s account for a P2,200 items 5. The following information pertains to Benguet Company as of December 31, 2003:
which should have been charged against K-mart, Inc., the error was not detected by the bank. Cash balance per general ledger 6,500,000
During April, the proceeds from notes collected by the bank for S-Mart, Inc. was P7,548 and Cash balance per bank statement ?
bank charges for this services was P18. Checks outstanding (including certified check of P100,000) 500,000
How much is the unadjusted book balance on April 30? (M) Bank service charge shown in December bank statement 20,000
A. P129,298 C. P129,533 Error made by Benguet in recording a check that cleared the bank
B. P141,158 D. PP140,923 RPCPA Adapted in December (check was drawn in December for P345,000
but recorded at P395,000) 50,000
Beginning bank balance, deposits, disbursements, outstanding checks Deposit in transit 930,000
16. Tresh, Inc. had the following bank reconciliation at March 31, 2010: At December 31, 2003 cash balance per bank statement is (M)
Balance per bank statement, 3/31/10 $37,200 A. 6,530,000 C. 6,100,000
Add: Deposit in transit 10,300 B. 6,000,000 D. 5,900,000 CPAR 4121
47,500
Less: Outstanding checks 12,600 Bank Credits, NSF Check, Deposit in Transit,
Balance per books, 3/31/10 $34,900 16. These are data for the month of December 1990:
Data per bank for the month of April 2010 follow: Balance per books, December 31, 1990 P78,450
Deposits $46,700 Outstanding checks, December 31, 1990 6,200
 Cash receipts recorded in books but not yet deposited 14,150 A. P31,526.15 C. P38,152.35
No sufficient fund check 3,500 B. P37,102.35 D. P30,488.65 RPCPA 1094
Note collected by bank, net of P400 service charges not recorded in books 12,600
Following the “book to bank” procedure approach of reconciliation and based on the above 18. The cashier misplaced all the bank statements for the past year. You reviewed the accounting
data, what is the balance per bank statement on December 31, 1990? (M) records and discovered that the following journal entry was made to reconcile the June 30,
A. P79,200 C. P78,800 2012 bank records and accounting records:
B. P79,600 D. P52,200 RPCPA 0591 Accounts receivable 152,024
Miscellaneous expense 1,250
Bank Credits & Charges, Interest, NSF Checks, Deposit in Transit & Outstanding Checks, Bank Notes receivable 20,000
Error Interest revenue 1,000
17. On March 3, 2004, Able Company received its bank statement. However, the closing balance Cash 132,274
of the account was unreadable. Attempts to contact the bank after hours did not secure the Pre-adjusting cash balance in the accounting records was P768,370, outstanding checks were
desired information. Thus, you had to prepare a bank reconciliation from the available P20,750 and no other adjustments were required.
information summarized below: What is the bank statement balance at June 30, 2012? (E)
February 28 book balance 1,460,000 A. P615,346. C. P656,846.
Note collected by bank 100,000 B. P636,096. D. P768,370 R & E 2012
Interest earned on note 10,000
NSF check of customer 130,000 Adjusted Cash in Bank Balance
Bank service charge on NSF check 2,000 Book & Bank to adjusted
Other bank service charges 3,000 19. Smith Co. has a checking account at Small Bank and an interest-bearing savings account at
Outstanding checks 202,000 Big Bank. On December 31, year 1, the bank reconciliations for Smith are as follows:
Deposit of February 28 placed in night depository 85,000 Big Bank Small Bank
Check issued by Axle Company charged to Able’s account 20,000 Bank balance $150,000 $1,500
What was the cash balance per bank statement? (M) Deposit in transit 5,000
A. 1,435,000 C. 1,338,000 Outstanding checks (8,500)
B. 1,532,000 D. 1,557,000 CGAC Book balance 155,000 (7,000)
What amount should be classified as cash on Smith's balance sheet at December 31, year 1?
Constructive Accounting a. $148,000 c. $155,000
3. Compute for the bank statement balance using the data below. The cashier misplaced all the b. $151,000 d. $156,000 AICPA R08
bank statements for the past year. You reviewed the accounting records and discovered that
the following journal entry was made to reconcile the June 30, 1994 bank records and 20. Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end
accounting records. of May, the general ledger checking account showed a balance of $1,360 and the bank
Accounts receivable 7,601.20 statement showed a bank balance of $1,445. Outstanding checks totaled $350 and deposits in
Miscellaneous expense 62.50 transit were $150. The bank statement listed service charges of $30 and NSF checks totaling
Notes receivable 1,000.00 $85. The corrected cash balance is: (D)
Interest revenue 50.00 A. $1,130. C. $1,245.
Cash 6,613.70 B. $1,160. D. $1,445. S&S 6e
Preadjustment cash balance in the accounting records was P37,102.35, outstanding checks
were P1,037.50 and no other adjustments were required. (M)
21. Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end Stolen check lacking an authorized signature, deducted from Mandirigma's
of July, the balance in the general ledger checking account was $2,750 and the bank balance account by the bank in error 800
on the bank statement was $2,980. Outstanding checks totaled $680 and deposits in transited Customer's check returned by the bank marked NSF; no entry has
were $400. The bank statement revealed that a check written for $120 was incorrectly been made in the accounting records to record the returned check 760
recorded by Brockton as a $220 disbursement. The bank statement listed service charges and What is the correct cash balance at May 31?
NSF check charges totaling $150. The corrected cash balance is: (D) A. P29,200 C. P30,300
A. $2,270. C. $2,470. B. P30,000 D. P30,900 Cabarles
B. $2,550. D. $2,700. S&S 6e
13. Rudi Company keeps all its cash in a checking account. An examination of the company’s
21. While checking the cash accounts of Bauer Company on December 31, 2009, you find the accounting records and bank statement for the month ended June 30, 2012 revealed the
following information: following information:
Balance per book 6,500,000 The cash balance per book on June 30 is P12,000,000
Balance in checking account (outstanding checks per book of P1,660,000) 7,000,000 A deposit of P2,000,000 that was placed in the bank’s night depository on June 30 does not
Deposit in bank closed by BSP 1,500,000 appear on the bank statement
Deposit in transit 1,200,000 The bank statement shows on June 30, the bank collected note for Rudi and credited the
Currency and coins on hand 400,000 proceeds of P1,400,000 to the company’s account
Petty cash fund (of which P10,000 is in form of paid vouchers) 50,000 Checks outstanding on June 30 amount to P500,000
Bank charges not yet taken up in book 10,000 Rudi discovered that a check written in June for P200,000 in payment of an account payable,
Bond sinking fund cash 1,000,000 had been recorded in the company’s records as P300,000
Receivables from employees 100,000 Included with the June bank statement was NSF check for P400,000 that Rudi had received
Error in recording a check in the book. The correct amount as paid from a customer on June 26
by the bank is P100,000 instead of P150,000 as recorded in the The bank statement shows a P50,000 service charge for June
book or a difference of 50,000 The cash in bank to be shown on the balance sheet on June 30, 2012 is (E)
The correct cash in bank balance for Bauer on December 31, 2009 is A. P11,500,000 C. P13,050,000
A. 6,540,000 C. 6,980,000 B. P12,850,000 D. P13,500,000 Cabarles
B. 6,640,000 D. 8,040,000 Siy
Bank & Book to Adjusted
1. The following data pertaining to the cash transactions and bank account of Mandirigma 6. The ledger account of Bally Company showed a ledger balance of P1,800,000 on December
Company for the month of May are available to you: 31, 2008. The bank statement as of that date showed a balance of P2,100,000. Upon
Cash balance, per records, May 31 P17,194 comparing the statement with the cash records, the following facts were determined:
Cash balance, per bank statement, 5/31 31,948  There were bank service charges for December of P10,000.
Bank service charge for May 109  A bank memo stated that Alex Inc.’s note for P200,000 and interest of P20,000 had been
Debit memo for the cost of printed checks delivered by the bank 125 collected on December 29, and the bank has made a charge of P5,000 on the collection.
Outstanding checks, May 31 6,728 No entry had been made in Bally’s books when Alex’ note was sent to the bank for
Deposit of May 30 not recorded by bank until June 1 4,880 collection.
Proceeds of a bank loan of May 30, net of interest of P300 5,700  Receipts for December 31 for P550,000 were not deposited until January 2.
Proceeds from a customer's promissory note, including interest of P100 8,100  Checks outstanding on December 31 totaled P325,000.
Check No. 2772 issued to a supplier entered in the accounting records at  The bank had charged the Bally’s Company’s account for a customer’s uncollectible
P2,100 but deducted in the bank statement at an erroneous amount of 1,200 check amounting to P43,000 on December 29.
  A customer’s check for P900,000 had been entered as P600,000 in the cash receipts Deduct:
journal by Bally on December 15. Outstanding checks P4,480
 Check no. 777 in the amount of P141,000 had been entered in the cash book as Note collected by bank (includes P50
P114,000, and check no. 799 in the amount of P10,000 had been entered as P100,000. interest 9,500 13,980
Both checks had been issued to pay for purchases of equipment. Balance per books P127,950
What is the amount of cash to be shown in the December 31, 2008 balance sheet? Santa Clara has P9,100 cash on hand on December 31, 1998.
A. 1,875,000 C. 2,226,000 The amount Santa Clara should report as cash on the balance sheet as of December 31, 1998
B. 2,195,000 D. 2,325,000 Siy should be (D)
A. P120,260 C. P130,640
6. The bookkeeper of Ifugao Company recently prepared the following bank reconciliation on B. P139,740 D. P132,240 RPCPA 0598
December 31, 2003:
Balance per bank statement 5,500,000 22. Divine Grace Company keeps all its cash in a checking account. An examination of the
Add: Deposit in transit 200,000 company's records for the month ended December 31, 2004 revealed a bank statement
Checkbook printing charge 5,000 balance of P45,000,000 and a book balance of P50,000,000.
Error made in recording check No. 2501 (issued in A deposit of P12,000,000 placed in the bank's might depository on December 29, 2004 does
December) 100,000 not appear on the bank statement. Checks outstanding on December 31, 2004 amount to
Customer check marked DAIF 45,000 350,000 P3,000,000.
Total 5,850,000 The bank statement shows that on December 15. 2004, the bank collected a note for Divine
Deduct: Outstanding checks 300,000 Grace and credited the proceeds of P5,500,000 to the company’s account. The proceeds
Note collected by bank (includes P25,000 interest) 250,000 550,000 included an interest of P500,000, all of which Divine Grace earned during 2004.
Balance per book 5,300,000 Divine Grace Company discovered that a check written on December 20, 2004 for P900,000 in
Ifugao has P500,000 cash on hand on December 31, 2003. The amount to be reported as payment of an account had been recorded by Divine Grace as P600,000
cash on the balance sheet as of December 31, 2003 should be (M) Inducted with the December 31, 2004 bank statement was an NSF check of P1,000,000. The
A. 5,400,000 C. 4,900,000 bank statement also shows a P200,000 service charge.
B. 5,900,000 D. 5,800,000 CPAR 4121 The cash in bank on December 31, 2004 balance sheet should be (M)
A. 54,000,000 C. 54,300,000
25. The bookkeeper of Santa Clara Co. recently prepared the following bank reconciliation: B. 53,500,000 D. 50,000,000 CPAR
Santa Clara Co. A. 4,500,000 C. 5,400,000
Bank Reconciliation B. 5,350,000 D. 5,550,000
December 31, 1998
7. What is the amount of cash receipt per ledger for July? 

Balance per bank statement P126,420 A. 8,400,000 C. 9,400,000
Add: B. 9,000,000 D. 9,600,000
Deposit in transit P8,700
Checkbook printing charge 210 8. What is the amount of cash disbursements per ledger for July?
Error made in recording check No. 25 A. 6,550,000 C. 6,850,000
(issued in December) 1,600 B. 6,700,000 D. 7,000,000
NSF check 5,000 15,510
P141,930