Financial Accounting and Reporting 1

Quiz on Cash and Cash Equivalents, and Bank Reconciliation

USE BALLPEN ONLY FOR YOUR FINAL ANSWER WITH SOLUTION.

Solve the following problems. Show your solutions. Encircle the final answer. (1 point
for every correct answer with proper solution.)

Alcudia Company revealed the following information on fiscal year ending August 31,
2018:
Cash in checking account with BDO 400,000
Cash in money market account 600,000
Treasury bill, purchased on July 1, 2018
maturing on December 31, 2018 3,600,000
Time deposit, purchased on June 30, 2018
maturing on September 28, 2018 4,500,000
__________ 1. What amount should be reported as cash on August 31, 2018?

Vergara Company had the following account balances on December 31, 2018:
Cash on hand 300,000
Cash in checking account with Metrobank 4,200,000
Cash legally restricted for addition to plant expected
to be disbursed not later than June 30, 2019 3,000,000
Bank certificate of time deposit due on January 30, 2019
purchased on November 1, 2018 1,000,000
__________ 2. What amount should be reported as cash and cash equivalents on
December 31, 2018?

Bate Company provided the following information at year-end:

Cash on hand 400,000
Cash in bank – savings at Land Bank 4,000,000
Cash in bank – demand at Land Bank ( 500,000)
Cash in bank – demand at BDO 5,000,000
Petty cash fund 50,000
90-day Commercial paper due in 2 months 1,000,000
180-day Certificate of time deposit due in 1 month 1,500,000
Unreleased vendors’ checks 1,200,000
Customers Post-dated checks 900,000
Money order 100,000
Traveler check 100,000
__________ 3. What amount should be reported as cash and cash equivalents at year-
end?

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On December 31, 2018, Velilia Company had the following cash balances:
Cash in Metrobank, savings 4,200,000
Cash in Metrobank, current ( 400,000)
Cash in BDO, savings 3,500,000
1-year Time deposit with Metrobank,
due on January 31, 2019 2,500,000
Sinking fund on Bonds maturing on February 28, 2019 2,000,000
Sinking fund on Bonds maturing on February 29, 2020 3,000,000
Petty cash fund 100,000

Cash in Metrobank savings included P3,000,000 of compensating balance against a

bank loan due on February 29, 2020. The compensating balance is not legally
restricted as to withdrawal.

Cash in BDO savings included P3,000,000 of compensating balance against a bank

loan due on February 29, 2020. The compensating balance is legally restricted as to
withdrawal.
__________ 4. What total amount should be reported as cash on December 31, 2018?
__________ 5. What total amount should be reported as noncurrent assets on
December 31, 2018?

__________ 6. What total amount should be reported as current liability on December

31, 2018?

Bausing Company had P50,000 petty cash fund which included the following details:
Bills and coins 20,000
Paid vouchers:
Transportation 600
Gasoline 1,000
Pantry supplies 500
Due from employees 9,000 11,100
Employee’s check returned by bank marked “NSF” 10,000
Check drawn to the order of petty cash custodian 7,900
__________ 7. What amount should be charged or credited to cash over or short
account?

Tucay Company provided you the cash account ledgers and bank statement for
January and February 2018 as follows:

Cash ledger
Date Details Debit Credit Balance
Jan 02 Initial investment 300,000 300,000
03 Chk No. 001 purchases 150,000 150,000
05 OR No. 001 sales 200,000 350,000
08 Chk No. 002 purchases 180,000 170,000
09 OR No. 002 sales 240,000 410,000
10 Chk No. 003 purchases 220,000 190,000
12 OR No. 003 sales 295,000 485,000
15 Chk No. 004 purchases 250,000 235,000
15 Chk No. 005 Payroll 100,000 135,000
17 OR No. 004 sales 335,000 470,000
18 Chk No. 006 purchases 300,000 170,000
19 OR No. 005 sales 400,000 570,000
22 Chk No. 007 purchases 300,000 270,000
23 OR No. 006 sales 400,000 670,000
24 Chk No. 008 purchases 350,000 320,000
29 Chk No. 009 purchases 450,000 (130,000)
30 OR No. 008 sales 600,000 470,000
31 Chk No. 010 Payroll 100,000 370,000
Feb 01 January DM – BSC 10,000 360,000

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Feb 01 January CM OR 009 465,000 825,000
01 Chk No. 011 purchases 500,000 325,000
02 OR No. 010 sales 332,500 657,500
05 Chk No. 012 purchases 500,000 157,500
05 OR No. 011 sales 332,500 490,000
06 Chk No. 013 purchases 400,000 90,000
07 OR No. 012 sales 650,000 740,000
12 Chk No. 014 purchases 600,000 140,000
12 OR No. 013 sales 530,000 670,000
14 OR No. 014 sales 750,000 1,420,000
15 Chk No. 015 Payroll 100,000 1,320,000
16 Chk No. 016 purchases 600,000 720,000
19 Chk No. 017 purchases 600,000 120,000
20 OR No. 015 sales 725,000 845,000
23 Chk No. 018 Personal withdrawals 500,000 345,000
26 Chk No. 019 purchases 600,000 ( 255,000)
28 Chk No. 020 purchases 500,000 ( 755,000)
28 Chk No. 21 Payroll 100,000 ( 855,000)

January 31, 2018 bank statement Total credits 2,635,000

Total debits 2,160,000

Date Details Debit Credit Balance

Jan 02 Iniitial deposit 300,000 300,000
04 Chk No. 001 150,000 150,000
08 Check deposit 200,000 350,000
10 Check deposit 240,000 590,000
10 Chk No. 003 220,000 370,000
10 Chk No. 002 180,000 190,000
15 Check deposit 295,000 485,000
15 Chk No. 005 100,000 385,000
18 Check deposit 335,000 720,000
18 Chk No. 006 300,000 420,000
22 Check deposit 400,000 820,000
22 Chk No. 004 250,000 570,000
23 Chk No. 007 300,000 270,000
24 Cash deposit 200,000 470,000
24 Check deposit 200,000 670,000
25 NSF Check 200,000 470,000
25 DM – BSC 10,000 460,000
26 CM – collection 465,000 925,000
29 Chk No. 008 350,000 575,000
31 Chk No. 010 100,000 475,000

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February 28, 2018 bank statement Jan 31, 2018 balance 475,000
Total credits 5,555,000
Total debits 4,350,000

Date Details Debit Credit Balance

Feb 01 NSF check redeposit 200,000 675,000
01 Chk No. 009 450,000 225,000
01 Check deposit 600,000 825,000
02 Chk No. 011 500,000 325,000
05 Check deposit 332,500 657,500
06 Cash deposit 332,500 990,000
08 Cash deposit 650,000 1,640,000
12 Chk No. 013 400,000 1,240,000
12 Chk No. 014 600,000 640,000
12 Chk No. 012 500,000 140,000
13 Cash deposit 530,000 670,000
15 Chk No. 015 100,000 570,000
15 Check deposit 750,000 1,320,000
19 Check No. 016 600,000 720,000
21 Check deposit 725,000 1,445,000
23 Check No. 018 500,000 945,000
27 CM – online deposit 720,000 1,665,000
28 Check No. 017 600,000 1,065,000
28 Check No. 021 100,000 965,000
28 CM – online deposit 715,000 1,680,000

__________ 8. What is the amount of deposit in transit as of January 31, 2018?

__________ 9. What is the amount of outstanding checks as of January 31, 2018?

__________ 10. What is the adjusted cash in bank balance as of January 31, 2018?

__________ 11. What is/are the reconciling items under the bank balance as of
February 28, 2018? Indicate the corresponding amount.

__________ 12. What is/are the reconciling items under the books as of February 28,
2018? Indicate the corresponding amount.

__________ 13. What is the adjusted cash balance as of February 28, 2018?

End of the Quiz. Good Luck!

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