1. A.
P11,000,000
Cash on hand 400,000
Cash in bank – current account 3,600,000
Cash in bank – payroll account 1,000,000
Cash in bank – value added tax account 600,000
Cash in bank – three month time deposit 2,500,000
Foreign bank account unrestricted and in equivalent pesos 1,400,000
Cash in sinking fund set aside for bond payable due December 31, 2023 1,500,000
CCE – December 31, 2022 P11,000,000
2. An entity reported the following information at year-end:
• Share investments of P1,000,000 that are very actively traded in the stock market. (Not included.
EQUITY INVESTMENT)
• Government treasury bills of P2,000,000 with a term one year but purchased on December 31 at
which time the bills had two months to go until maturity. (INCLUDED)
• Cash of P4,000,000 in the form of coin, currency, saving account and checking account. (Not included.
Part of CASH)
• Commercial papers of P1,500,000 with term of nine months but purchased on December 31 at which
time the papers had three months to go until maturity. (INCLUDED)
What total amount should be reported as cash equivalents?
a. 7,500,000
b. 3,500,000
c. 8,500,000
d. 4,500,000
3. An entity provided the following information on December 31, 2022:
Petty cash fund, all funds reimbursed on December 31, 2022 50,000 (INCLUDED)
Cash on hand 200,000 (INCLUDED)
Philippine Bank current account 5,000,000 (INCLUDED
+250,000)
Manila Bank current account No. 1 4,000,000 (INCLUDED)
Manila Bank current account No. 2 (overdraft) ( 500,000) (CURRENT LIABILITY)
BDO account set aside for bond payable due December 31, 2024 3,000,000 (NON CURRENT
LIABILITY)
Treasury bonds 2,000,000 (NON CURRENT
ASSET)
Treasury bills 2,500,000 (INCLUDED)
Included among the checks drawn by the entity against the Philippine Bank current account and
recorded on December 31, 2022 are:
* Check recorded and dated December 23, 2022 and delivered to payee on January 31, 2023, P100,000.
(Undelivered Check (Spending) – ADD BACK)
* Check recorded December 26, 2022, dated January 30, 2023 and delivered to payee on December 31,
2022, P150,000. (PDC (Spending) – ADDBACK)
What total amount should be reported as cash and cash equivalents on December 31, 2022?
a. 11,250,000
b. 13,500,000
c. 11,500,000
d. 12,000,000
4. An entity reported the following ay year-end.
Cash on hand 500,000 Traveler’s check 200,000
Demand deposit 4,000,000 Manager’s check 100,000
Three-month certificate of deposit 2,000,000 (part of CE) Money order 150,000
NSF customer check 300,000 (part of A/R)
What amount of should be reported as cash at year-end?
a. 6,950,000
b. 4,750,000
c. 6,750,000
d. 4,950,000
5. An entity provided the following information on December 31, 2022:
Petty cash fund 50,000 (less P15,000 and P5,000)
Current account – First Bank 4,000,000
Current account – Second Bank (overdraft) ( 250,000)
Money market placement – Third Bank 1,000,000
Time deposit – Fourth Bank 2,000,000 (Not included)
* The petty cash fund included unreplenished December 2022 petty cash expense vouchers for P15,000
and an employee check for P5,000 dated January 1, 2023.
* The Fourth Bank time deposit is set aside for land acquisition in early January 2023.
What total amount should be reported as cash and cash equivalents on December 31, 2022?
a. 5,030,000
b. 5,050,000
c. 4,780,000
d. 7,030,000
6. On December 31, 2022, an entity reported cash account balance per ledger of P9,000,000 which
included the following:
Cash in bank – demand deposit 3,000,000
NSF check of customer 200,000
Money market placement due on June 30, 2023 2,000,000
Saving deposit 1,000,000
IOU from an employee 300,000
Pension fund 1,500,000
Customer check dated January 31, 2023 600,000
Customer check outstanding for 18 months 400,000
9,000,000
The cash receipts journal was held open until January 15, 2023, during which time P300,000 was
collected and recorded on December 31, 2022. What total amount should be reported as cash and cash
equivalents on December 31, 2022?
a. 3,700,000
b. 4,000,000
c. 5,700,000
d. 5,200,000
7. On December 31, 2022, an entity established a petty cash fund of P50,000. On December 31, 2022,
the petty cash fund comprised coins and currencies P6,000 and vouchers for expenses P47,000. The
petty cash fund was replenished on December 31, 2022. What entry should be made to replenish the
petty cash fund?
a. Debit petty cash P47,000, credit cash P44,000, credit cash short or over P3,000
b. Debit expenses P47,000, credit cash P47,000
c. Debit expenses P47,000, credit cash P44,000, credit cash short or over P3,000
d. Debit expenses P44,000 debit cash short or over P3,000, credit cash P47,000
