Problem 1: House-boy Company

Book November 30 Receipts Disbursement December 31

Unadjusted 25,780 53,980 54,760 25,000
Credit memo, Dec. 7,500 7,500
Debit memo, Nov. (180) (180)
Debit memo, Dec 240 (240)
Debit memo, Dec 5,000 (5,000)
Error (2,000) 2,000
Adjusted 25,600 61,480 57,820 29,260

Bank November 30 Receipts Disbursement December 31

Unadjusted 27,380 55,880 56,300 26,960
Deposit in transit, Nov. 6,850 (6,850)
Deposit in transit, Dec. 12,450 12,450
Outstanding check, Nov. (8,630) (8,630)
Outstanding check, Dec, 10,150 (10,150)
Adjusted 25,600 61,480 57,820 29,260

1. 61,480 A
2. 57,820 C
3. 29,260 B
4. 25,600 D
5. Cash 2,000
Equipment 2,000 D

Problem 2: Charmaine Company
Book June 30 Receipts Disbursement July 31
Unadjusted 1,000,000 4,000,000 3,600,000 1,400,000
Credit memo, last month 300,000 (300,000)
Credit memo, current month 500,000 500,000
Debit memo, last month (104,000) (104,000)
Debit memo, current month 1,000 (1,000)
Adjusted 1,196,000 4,200,000 3,497,000 1,899,000

Bank June 30 Receipts Disbursement July 31

Unadjusted 1,650,000 3,500,000 2,500,000 2,650,000
Deposit in transit, last month 400,000 (400,000)
Deposit in transit, current month 1,100,000
Outstanding check, last month (854,000) (854,000)
Outstanding check, current month 1,851,000
Adjusted 1,196,000 4,200,000 3,497,000 1,899,000

6. 1,100,000 B
7. 1,851,000 A
8. 1,196,000 C
9. 1,899,000 C




Problem 3: Juliet Company
10. Bonus
11. Bonus
12. Bonus
13. Bonus

Problem 4: Ashtani Company

14. Deposit in transit unadjusted 175,250
Recorded postdated check (50,000)
Adjusted post dated check 125,250 B
15. Unadjusted outstanding check 246,750
Unreleased check (14,750)
Released company’s postdated check (37,210)
Adjusted outstanding check 194,790 D
16. Book Bank
Unadjusted balance 293,500 350,000
Deposit in transit 125,250
Outstanding check (194,790)
Bank error (30,000)
Credit memo 15,000
Book error (recording of postdated check as receipt) (50,000)
Book error (recording of payment of unreleased and postdated check) 51,960
Cash shortage (squeeze) 60,000 .
Adjusted balance 250,460 250,460 B
17. 60,000 C
18. Unadjusted book balance 293,500
Adjusted book balance 250,460
Net adjustment (credit) 43,040 A




Problem 5: Tazmania Company
19. Book Bank
Unadjusted balance 94,508 77,750
Deposit in transit 18,972
Outstanding check (5,311)
Credit memo 500
Cash shortage (squeeze) 3,597 .
Adjusted balance 91,411 91,411
Deposit in transit 18,972
Cash shortage 3,597
22,569 C
20. Cash shortage 3,597 A
21. A
22. 91,411 B


Problem 6: Be On You Company
23.
Currencies and coins at the date of cash count 3,020
Less: unclaimed salary (2,600)
Add: accommodation checks 2,300
Adjusted petty cash fund at December 31 2,720 C

24.
Accountability Accounted
a. Imprest balance 5,000 a) Remaining currency and coins 3,020
b. Undeposited cash collections b) Envelope containing employee contribution
c. Undeposited check collections 1,200 c) Customers checks accounted 1,200
d. Unclaimed salary 2,600 d) Paid expense voucher
e. Excess of advance travel - e) Replenishment checks 816
f. Employee contributions f) IOUs
g) Accommodation check 3,680
Total 8,800 Total 8,716

Accountability........... ........... ........... ........... ........... ...... 8,800

Accounted........... ........... ........... ........... ........... ........... 8,716
Shortage........... ........... ........... ........... ........... ........... . 84 B



Problem 7: Luminous Company
Book August 31 Receipts Disbursement September 30
Unadjusted 640,000 1,795,000 1,800,000 635,000
Credit memo, Aug. 200,000 (200,000)
Credit memo, Sept. 250,000 250,000
Debit memo, Aug. (120,000) (120,000)
Debit memo, Sept. 80,000 (80,000)
Book error (100,000) (100,000)
Book error (45,000) (45,000)
Adjusted balances 675,000 1,745,000 1,615,000 805,000

Bank August 31 Receipts Disbursement September 30

Unadjusted 785,000 1,955,000 1,655,000 1,085,000
Deposit in transit, Aug. 450,000 (450,000)
Deposit in transit, Sept. 240,000 240,000
Outstanding check, Aug. (180,000) (180,000)
Outstanding check, Sept. 220,000 (220,000)
Bank error (80,000) (80,000)
Adjusted balances 675,000 1,745,000 1,615,000 805,000
25. 675,000 C
26. 240,000 B
27. 220,000 B
28. 805,000 D

Problem 8: Californiation Company

29.
Currencies and coins at the date of cash count 1,503
+vouchers January 2, 2018 1,500
Add: accommodation checks 2,000
Adjusted petty cash fund at December 31 5,003 B

30.
Accountability Accounted
a. Imprest balance 10,000 a) Remaining currency and coins 1,503
b. Undeposited cash collections - b) Envelope containing employee contribution -
c. Undeposited check collections 3,950 c) Customers checks accounted 3,950
d. Unclaimed salary - d) Paid expense voucher 2,250
e. Excess of advance travel - e) Replenishment checks -
f. Employee contributions f) IOUs 0
g) Accommodation check 3,800
Total 13,950 Total 11,503

Accountability........... ........... ........... ........... ........... ...... 13,950

Accounted........... ........... ........... ........... ........... ........... 11,503
Shortage........... ........... ........... ........... ........... ........... . 2,447 B




Problem 9: Ne-yo Company
Book Nov Receipts Disbursement Dec
Unadjusted 821,950 9,198,720 8,613,010 1,407,660
Debit memo, Nov (38,400) (38,400)
Debit memo, Dec 24,750 (24,750)
Debit memo, Dec 2,250 (2,250)
Book error 2,700 2,700
Adjusted balances 786,250 9,198,720 8,601,610 1,383,360
Bank Nov Receipts Disbursement Dec
Unadjusted 876,750 9,153,760 8,526,550 1,503,960
Deposit in transit, Nov 164,220 (164,220)
Deposit in transit, Dec 209,180 209,180
Outstanding check, Nov (254,720) (254,720)
Outstanding check, Dec 335,610 (335,610)
Bank error (5,830) 5,830
Adjusted balances 786,250 9,198,720 8,601,610 1,383,360
31. 1,503,960 D
32. 786,250 A
33. 9,198,720 A
34. 8,601,610 C
35. 1,383,360 D

Problem 10: MSU Inc.

Per book Per bank
Unadjusted balances 1,354,287 1,463,212
a. deposit in transit 57,500
b. outstanding check (exclude certified checks) (132,025)
c. debit memo
- service charge (1,400)
- NSF/DAIF/DAUF check (8,500)
- automatic debit (45,000)
d. credit memo
- collection of the bank in behalf of company
- proceeds from loan directly credited to the bank account
e. errors 1,800 (87,500)
Adjusted balance 1,301,187 1,301,187
Cash in bank 1,301,187
Petty cash fund 20,000
Cash equivalents 500,000
Cash and cash equivalents 1,821,187

36. 1,354,287 A
37. 1,301,187 B
38. 1,821,187 A

Problem 11: Ettedanreb Corporation

Book Nov Receipts Disbursement Dec
Unadjusted squeeze 60,350 1,364,260 1,243,185 181,425
Credit memo, Nov 359,075 (359,075)
Credit memo, Dec 404,500 404,500
Debit memo, Nov (3,600) (3,600)
Debit memo, Dec 3,000 (3,000)
Book error 72,000 (72,000)
Book error, corrected (180,000) (180,000)
Adjusted balances 487,825 1,157,685 1,062,585 582,925

Bank Nov Receipts Disbursement Dec

Unadjusted 535,410 1,245,540 1,091,865 689,085




Deposit in transit, Nov 41,005 (41,005)
Deposit in transit, Dec 64,400 64,400
Outstanding check, Nov (138,590) (138,590)
Outstanding check, Dec 150,560 (150,560)
Special recon (41,250) (41,250)
Erroneous charged, Nov 50,000 (50,000)
Erroneous credit, Dec (20,000) (20,000)
Adjusted balances 487,825 1,157,685 1,062,585 582,925

39. 1,364,260 A
40. 1,243,185 A
41. 487,825 A
42. 181,425 C
43. 582,925 D

Problem 12: Individual Problem

44.
Cash in bank 3,200,000
Cash on hand 250,000
Cash fund set aside for dividend payment in 2023 100,000
Total cash 3,550,000 B

45. Unadjusted balance of cash 8,000,000

Customer’s postdated check (3,000,000)
Company’s unreleased check 2,500,000
Currencies and coins 800,000
Adjusted balance of cash 8,300,000 C

46. Cash equivalents 2,500,000 D

47. Petty cash fund (of which P3,500 is expense receipts; P1,500 is IOU notes) 10,000 – 5,000 C
3,500 – 1,500
48. Cash in Security Bank per bank statement 45,000 – 25,000 + 10,000 + 5,000 35,000 B
Undeposited receipt, including travelers’ check of P2,500 and postal money order of 27,500
P3,000
Cash in BPI per book (credit memo for note collected of P15,000; debit memo for NSF
check of P500 and bank service charge of P100) 32,000 + 15,000 – 500 – 100 46,400
Cash in PNB, including compensating balances of P100,000, unrestricted 500,000
Treasury bills, with 90 days original maturity 50,000
49. Cash and cash equivalents 663,900 B

50. Petty cash fund 3,800

Cash in bank, general account 625,000 + 25,000 650,000
Cash on hand 25,000 – 6,500 18,500
Cash in bank, Administrators payroll account 750,000 + 125,000 875,000
Cash in bank, General account B, including unrestricted compensating balances of 270,000
P200,000.
Total cash and cash equivalents 1,817,300 A