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ACCOUNTING 1
• Cash and Cash equivalents
I. THEORIES.
A. Multiple Choices. Choose the letter of the best answer.
6. A compensating balance
A. Must be included in cash and cash equivalent.
B. Which is legally restricted and related to a long term
loan is classified as current asset.
C. Which is legally restricted and related to a short-term
loan is classified separately as current asset
D. Which is not legally restricted as to withdrawal is
classified separately as current asset.
21. The person responsible, at all times, for the amount of the
petty cash fund is the
A. Chairman of the Board of Directors
B. President of the company
C. Petty cash custodian
D. General cashier
On June 30, the petty cash fund was replenished and increased
to P 12,000; currency and coins in the fund at that time totaled P
756.
Bank reconciliation
G. The auditor for Glaives Co. examined the petty cash fund
immediately after the close of business, July 31, 2013, the
end of company’s natural business year. The petty cash
custodian presented the following during the count:
Currency P 1,650
Petty cash voucher:
Postage 420
Office supplies 900
Transportation 340
Repairs & maintenance 800
Advances to office staff 1,500
A check drawn by Glaives, payable to the petty
cash custodian 7,200
Postage stamps 300
An employee check, returned by bank, marked
NSF 1,000
An envelope containing currency for a gift for a
retiring employee 1,890
Dec. 31 Jan. 1
Cash ? P 186,000
Accounts receivable 273,000 201,000
Merchandise inventory 234,000 258,000
Accounts payable 144,000 159,000
Total sales and cost of sales for 2013 were P 2,394,000 and P
1,749,000, respectively. All sales and purchases were made on
credit. Various operating expenses of P 321,000 were paid in
cash. Assume that there were no other pertinent transactions.
Compute for the…
Debit memo for printed checks delivered by the bank; the charge
has not been recorded in the accounting records, P 225.
P. The trial balance of Reyes Co. at Dec. 31, 2013 includes the
following accounts:
Compute for:
33. The cash in bank balance per books on Dec. 31, 2013.
34. The adjusted cash in bank balance on Dec. 31, 2013.
35. The amount to be reported as cash and cash equivalents
on its Dec. 31, 2013 statement of financial position.
Compute for
36. The total collections from sales
37. The total payments for merchandise purchases
38. The total cash receipts per books
39. The total cash disbursements per books
40. The cash balance per books on Dec. 31
41. The adjusted cash balance on Dec. 31
Compute for
42. The principal amount of the note collected by bank in
December.
43. The adjusted cash in bank balance at Dec. 31, 2013.
44. The cost of checkbook
45. The amount of petty cash shortage at Dec. 31, 2013
46. The adjusted petty cash balance
You started the audit on Nov. 15. On that date, the cash on
hand per surprise count was P5,140. Also on that date, the
bank confirmed that the balance of the company’s current
account was P26,328. You also obtained the information
that the cashier’s accountability is P151,228. Your
examination of the records reveals that a check for P1,852
was outstanding on Nov. 15, the company’s mark up is 40%
of sales.
Compute for
47. The amount paid for inventory purchases
48. The collections from customers
49. The adjusted bank balance as of Nov. 15, 2013
50. The cash shortage as of Nov. 15, 2013
Compute for
51. The principal amount of the loan obtained from bank in
December
52. The amount of collection fee
53. The adjusted cash in bank balance as of Dec. 31, 2013
54. The net adjustment in cash in bank per ledger as of Dec.
31, 2013
~END OF ACC 1A&B~
“For the things we have to learn before we can do them, we learn by
doing them.”
~ Aristotle
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