Beruflich Dokumente
Kultur Dokumente
Name: Score:
Course & Section: Date:
Problem 1
The “CASH” account of Don Corporation’s ledger on December 31, 2006 showed the following:
a. Petty cash fund (including P7,500 unreplenished voucher of which P2,400 is dated
January 3, 2007) P 15,000
b. Redemption Fund Account – PNB 500,000
c. Traveler’s check 100,000
d. Money order 10,000
e. Treasury bill, purchased December 1, 2006 (due on Feb. 1, 2007) 50,000
f. Time deposit due on March 31, 2007 50,000
g. 180-day Treasury bill, due March 15, 2007 120,000
h. Note receivable in the possession of a collecting agency 20,000
i. PNB – Checking Account #211-009-091 325,900
j. Cash on hand, including customer post- dated check of P15,000 23,000
k. Savings deposit, earmarked for acquisition of equipment 210,000
l. A check payable to San Ignacio Incorporated, dated January 5, 2007,
1. that was included in the December 31 PNB Checking Account #211-009-091 50,000
m. Bond Sinking Fund (used to finance the maturing long-term obligation on March 31,
2007) 150,000
n. Overdraft in PNB Checking Account #211-099-085 ( 50,000)
o. Check #801 in payment to Accounts Payable, dated Dec. 31, 2006 not mailed until
January 5, 2007 20,000
p. Advances to Officers/Employees for Seminars (no liquidation is required) 80,000
q. Money market placement (due June 30, 2007) 600,000
r. Listed stock held as temporary investment 100,000
s. Check #789 in payment to Suppliers, dated January 5, 2007 and recorded December 31,
2006. 35,000
t. Customers’ certified checks 10,000
u. Pension Fund 150,000
Questions:
a. Investment 150,000
Cash 150,000
b. Other assets 150,000
Cash 150,000
c. Short-term investment 150,000
Cash 150,000
d. No adjustment
4. DON CORPORATION’S cash and cash equivalents balance at December 31, 2006 is:
a. Overstated by P1,950,100
b. Overstated by P 1,895,100
c. Overstated by P 1,845,100
d. Overstated by P 1,795,100
5. DON CORPORATION’S adjusted cash and cash equivalents balance at December 31,
2006 is:
a. P 618,800
b. P 623,800
c. P 673,800
d. P 723,800
Problem 2
The following items are found in the cash account of Ivie Company at December 31, 2006.
The company’s controller asks your opinion whether the items listed below should be considered
as part of cash account and come up with adjusting entry to adjust the cash account.
a. Customers’ check dated December 25, 2006, P25,000.
b. Company’s check (P30,000) dated December 26, 2006 which was drawn in payment
for merchandise purchased on that date but not delivered until January 3, 2007. This
check was deducted in the cash balance.
c. A check worth P196,000 from customer who paid the account net of the 2% discount.
The company records the transaction as credit to Accounts Receivable for the
proceeds.
d. Cash in closed bank (Urban Bank), P95,000.
e. Redemption fund, P100,000
f. Sinking fund, P100,000. This will be used on March 1, 2007 to redeem the bonds
payable.
g. Metro Bank Checking Account No. 0004568, P210,000.
h. RCBC Checking Account No. 0002347, P115,000.
i. Overdraft in PNB Checking Account No. 00011256, P50,000.
j. Company’s check dated January 3, 2007 in payment of account, P50,000. This was
recorded in the company’s disbursement ledger at December 31, 2006.
k. Overdraft in RCBC Checking Account No. 0056791, P15,000.
l. Postage stamps, P2,000.
m. 90-day Treasury Bills (purchase on November 1, 2006), P100,000
n. Treasury Bills that matures on February 1, 2007, P50,000.
o. Change fund, P10,000.
p. Customers’ certified check, P20,000.
q. Company’s certified check, P50,000. (This was included in the cash disbursement for
December).
Questions:
5. IVIE COMPANY’S adjusted cash and cash equivalents balance at December 31, 2006 is:
a. P 771,000
b. P 741,000
c. P 721,000
d. P 691,000
Problem 3
Your audit of the December 31, 2006, financial statements of Mato Corporation reveals the
following:
a. Current account at PBCom P (35,000)
b. Current account at PNB 65,000
c. Treasury bills (acquired 3 months before maturity) 200,000
d. Treasury bills (maturity date is 12/31/07) 500,000
e. Payroll account 175,000
f. Foreign bank account - restricted (translated using the 12/31/06 exchange rate)
900,000
g. Postage stamps 600
h. Employees’ checks marked “DAIF” 10,000
i. IOU from the vice-president 50,000
j. Credit memo from a supplier for a purchase returns 25,000
k. Traveler’s check 60,000
l. Money order 10,000
m. Company’s check dated 12/30/06 but not mailed at year-end 30,000
n. Petty cash fund (P4,000 in currency and expense receipts for (P6,000) = 10,000
Questions:
a. P 560,000
b. P 544,000
c. P 514,000
d. P 509,000
Problem 4
Questions:
1. PACATANG COMPANY’S adjusted cash and cash equivalents balance at December 31,
2006 is:
a. P 1,910,300
b. P 2,400,300
c. P 2,510,300
d. P 3,510,300
2. The travel advance of P180,000 for executive travel should be classified as:
a. Accounts receivable
b. Travel expenses
c. Prepaid expenses
d. Advances to employees
Problem 5
Present journal entries to record the following transactions in the books of Marites Corporation,
which uses a calendar year as accounting period. Assume that the company is using the imprest
method in accounting for petty cash fund:
a. A petty cash fund was set up on November 1, 2006 in the amount of P2,400.
b. On November 29, 2006, a check was issued to replenish the fund, the composition
of which was as follows:
e. On January 5, 2007, the check of office manager was cashed and the proceeds
were added to the petty cash fund.
Questions:
1. The entry to record the November 29 replenishment of petty cash fund is:
a. P 3,000
b. P 1,958
c. P 984
d. P 958
3. The entry to record the December 31, 2006 adjustment of petty cash fund is:
a. Operating expenses 216
Accounts payable 800
Cash short/over 26
Petty cash fund 1,042
4. The entry to record the January 6, 2004 replenishment of petty cash fund is: