1.

Cash on hand 500,000

Cash in bank 4,000,000

Petty cash fund 50,000

Commercial paper with maturity of 2 months 1,000,000

P5,550,000

2. Check book balance 4,000,000

Check drawn on Hernandez account,
payable to supplier, dated and
recorded on December 31, 2018 500,000
P4,500,000

3. Cash in bank-current account 6,000,000

Petty cash fund (all funds were
reimbursed at year-end) 50,000
Time deposit-three months,
due January 15,2018 2,500,000
Saving deposit 1,000,000
P9,550,000
Compensating balance (400,000)
Cash and cash equivalents P9,150,000

4. Petty cash fund 50,000

Cash in bank-current account 4,000,000

5. Balance per bank statement 3,800,000

Deposit in transit 520,000
Amount erroneously credited by
bank to the entity’s account ( 40,000 )
Outstanding Checks ( 675,000 )
Adjusted bank balance P3,605,000

Unadjusted book balance 3,610,000

Bank service charge for the current month (5,000)
Adjusted bank balance P3,605,000
6. February 28 book balance 1,460,000
Note collected by bank 100,000
Interest earned on note 10,000
NSF check of customer 130,000
Bank service charge on NSF check ( 2,000 )
Other bank service charges ( 3,000 )
Adjusted bank balance P1,435,000

Balance per bank statement P1,532,000

Deposit in transit 85,000
Check issued by Marie Ann Company
charged to Gonzaga account 20,000
Outstanding checks ( 202,000 )
Adjusted bank balance P1,435,000

7. Balance per bank statement 1,805,000

Deposit in transit 325,000
Outstanding Checks ( 275,000 )
Adjusted bank balance P1,855,000

8. Cash account balance P4.500,000

Collection by the bank 94,000
NSF check (32,000)
Error- customer check (9,000)
Error-written check 18,000
P4,571,000

9. Balance per ledger, July 31 3,750,000

Debit Memo- service charges (50,000)
Credit memo- collection of note by
bank for Arellano 1,500,000
Book error (100,000)
Unrecorded check for travelling expense (500,000)
Adjusted book balance P4,600,000

Balance per bank 6,200,000

Deposit in transit 1,400,000
Total 7,600,000
Outstanding Check (SQUEEZE) 3,000,000
Adjusted book balance P4,600,000
 10. Outstanding checks - May 31 3,000,000
Check issued by depositor in June:
Total credits to cash in June 9,000,000
Service charge in May recorded in June (100,000) 8,900,000
Total 11,900,000
Checks paid by bank in June:
Checks and charges by bank in June 8,000,000
Service charge in June (50,000)
NSF check in June (1,000,000) 6,950,000

Outstanding checks- June 30 P4,950,000

11. A. Balance per bank 9,800,000

Bank deposit for July 6,500,000
Bank disbursement for July (9,000,000)
Balance per bank-July 31 7,300,000
Deposit in transit-July 600,000
Outstanding checks (1,000,000)
Adjusted bank balance P6,900,000

B. The adjusted bank balance is also the cash balance per book because there are no book
reconciling items.

C. Bank deposit for July 6,500,000

Deposit in transit-July 31 600,000
Deposit in transit-June 30 (400,000)
Cash receipts per book for July P6,700,000

D. Bank disbursement for July 9,000,000

Outstanding checks-July 31 1,000,000
Outstanding checks-June 30 (1,400,000)
Cash disbursement per book for July P8,600,000

12. Cash on hand and in bank P5,000,000

Savings Deposit set aside for
dividend payable on December 31,2019 1,000,000
Total cash- Dec. 31 P6,000,000