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Aud Cash

The document contains 4 sections providing financial information for various companies and requiring the preparation of adjusting entries, bank reconciliations, and corrections to accounting records. Section 1 provides cash account balances and transactions for X Company for 2016 requiring adjusting entries and a calculation of cash and cash equivalents. Section 2 provides petty cash transactions for Z Company requiring journal entries under different petty cash systems. Section 3 provides cash account balances for Adept Company requiring a bank reconciliation and adjustments. Section 4 provides a four-column bank reconciliation for Charles Company requiring corrections to balances.

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Jamikka Distal
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401 views2 pages

Aud Cash

The document contains 4 sections providing financial information for various companies and requiring the preparation of adjusting entries, bank reconciliations, and corrections to accounting records. Section 1 provides cash account balances and transactions for X Company for 2016 requiring adjusting entries and a calculation of cash and cash equivalents. Section 2 provides petty cash transactions for Z Company requiring journal entries under different petty cash systems. Section 3 provides cash account balances for Adept Company requiring a bank reconciliation and adjustments. Section 4 provides a four-column bank reconciliation for Charles Company requiring corrections to balances.

Uploaded by

Jamikka Distal
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1. On December 31, 2016, X Company provided the ff.

data:

Cash in bank P3,000,000


Time deposit – 30 days P1,000,000
Money market placement due on June 30, 2,000,000
2017
Saving deposit in close bank 100,000
Sinking fund bond payable due June 30, 1,500,000
2018
Petty cash fund 20,000

 The cash in bank included customer check of P200,000 outstanding for 18mos.
 Check of P250,000 in payment of account payable was dated and recorded on
December 31, 2016 but mailed to creditors on January 15, 2017.
 Check of P100,000 dated January 2017, in payment of account payable was
recorded and mailed December 31, 2016
 The reporting period is the calendar year.
 The cash receipts journal was held open until January 15, 2017 during which
time an amount of P450,000 was collected and recorded on December 31, 2016

Required:

a. Prepare adjusting entries on Dec. 31, 2016


b. Compute the total amount of cash and cash equivalents that should be reported
on December 31, 2016

2. Z Company established a petty cash fund.

 Established a petty cash fund of P10,000 on January 2.


 Petty cash expenses – January 2-31 are:
Postage 1,500
Supplies 5,500
Transportation 1,200
Miscellaneous expense 800

- The fund is replenished on February 1 and increased by P5,000.

Required:
a. Prepare journal entries to record the transactions under the fluctuating
fund system and imprest fund system.

3. Adept Company provided the following data for the month of December of the
current year.

Balance per book P5,000,000


Balance per bank 4,450,000
Deposit in transit 3,000,000
Outstanding check 850,000
Bank service charge for the month of 50,000
December
Customers check returned by the bank 500,000
marked “NSF”
Customers Note collected by the bank: Face 2,150,000
P2,000,000; Interest P200,000; collection
fee P50,000
Required:

a. Prepared a bank reconciliation on Dec 31.


b. Prepare adjustments to correct the cash balance per book.

4. Charles Company is making a four-column reconciliation on June 30 from the ff data.


The amounts per bank statement were: Balance – May 31 P6,500, June receipts P13,000,
June disbursements P11,000.

The amounts per books were: Balance – May 31 P7,635, June receipts P11,548, june
disbursements P11,235, Balance – June 30 P7,948.

May 31 June 30
Deposit in transit P1,200 P1,500
Outstanding checks 670 840
The bank overlooked a check for P75 when recording
a deposit on June 10
Note collected by the bank, recorded after 1,800
receiving the bank statement
NSF checks recorded after receiving the bank 560 480
statement
Service charge, recorded after receiving the bank 45 60
statement
Charles recorded a P374 check received from a
customer in June as P347

Question 1: The corrected balance per bank on June 30 is:

a. 9,085 c. 9,235
b. 9,160 d. 10,075

Question 2: The corrected June receipts per books is:

a. 11,575 c. 13,346
b. 13,300 d. 13,375

Question 3: The corrected June disbursements per books is:

a. 10,830 c. 11,250
b. 11,170 d. 11,300

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