1.

CEBU COMPANY provided the following information as of December 31, 2016:

Balance per bank statement 50,000

Deposit in transit 5,000
NSF check 500
Book error overstating cash 5,000
Outstanding checks 500
Bank service charges 50

What should be the adjusted cash balance as of December 31, 2016?

2. MAKATI COMPANY provided the following information as of December 31, 2016:

Balance per book 100,000
Bank charges 100
Outstanding checks 1,000
Deposit in transit 10,000
Customer note collected by bank 10,000
Interest on customer note 1,000
NSF check 1,000
Depositor’s note charged to 10,000
account

What should be the adjusted cash balance as of December 31, 2016?

Items 3 and 4:

The cash account in the ledger of BATANGAS CORPORATION shows a balance of P200,000 as of
January 31, 2017. The bank statement, however, shows a balance of P150,000 at the same
date. The only reconciling items consist of a bank service charge of P1,000, a large number of
outstanding checks totaling P10,000 and a deposit in transit.

3. What is the adjusted cash balance as of January 31, 2017?

4. What is the deposit in transit in the January bank reconciliation?

5. DAVAO FLOWER SHOP had the following information as of February 28, 2017:
Deposits made per February company 50,000
books
Deposits shown in February bank statement 48,000

Compute for the Deposits in transit as of February 28, 2017.

6. BUKIDNON STORE provided the following information as of March 31, 2017:

Total amount of checks issued in March 23,000
Amount of checks cleared per March bank 15,500
statement

Compute for the March outstanding checks.

7. In the audit of COTABATO ENTERPRISES as of December 31, 2016, the following information
was gathered:
Balance per book, 12/31/16 100,000
Deposits in transit, 11/30/16 15,000
Deposits in transit, 12/31/16 20,000
Balance per bank 90,000
Outstanding checks, 17,000
11/30/16
Outstanding checks, 14,000
12/31/16

Compute for the adjusted cash balance as of December 31, 2016.

8. Upon inspection of ALBAY COMPANY’s records as of December 31, 2016, the following
information was obtained:
Balance per book 50,000
Deposits in transit 35,000
Outstanding checks 5,000
Balance per bank 40,000
Debit Memo 10,000
Credit Memo 30,000

Compute for the adjusted cash balance as of December 31, 2016.

9. CORON CORPORATION provided the following information:

Balance per book 555,000
Balance per bank 475,000
Outstanding checks 55,000
Adjusted bank 600,000
balance

How much were the total deposits in transit?

10. EL NIDO, INC.’s records show the following:

Balance per book 60,000
Balance per bank 53,000
Adjusted cash 7,000
balance

What amount should be reported as cash in the Statement of Financial Position?

Items 11-15:

The following is taken from the books of SIARGAO Company

Cash Receipts Cash Payments

12/2 10,000 Check 501 5,000
12/9 15,000 Check 502 10,000
12/10 20,000 Check 503 2,500
 12/22 25,000 Check 504 12,500
12/23 30,000 Check 505 5,000
12/30 50,000 Check 506 25,000
150,000 60,000

Balance of cash per general ledger as of November 30, 2016 is P49,000

Presented below is the bank statement of SIARGAO’s checking account from MINDANAO BANK
for the month of December.

MINDANAO BANK
Davao City

SIARGAO COMPANY Account No. 123

12/31/2017

Date Debits Credits Balance

11/30 50,000
12/4 10,000 60,000
12/6 Check 501 5,000 55,000
12/11 35,000 90,000
12/12 Check 502 10,000 80,000
12/18 Check 503 2,500 77,500
12/25 55,000 132,500
Check 504 12,500 120,000
12/26 Check 499 1,000 119,000
12/27 Check 506 25,000 94,000
12/28 DM 3,000 91,000
12/29 CM 75,000 166,000
12/30 NSF 10,000 156,000
12/31 BSC 1,000 155,000

Legend
DM – Debit Memo (cost of check books)
CM – Credit Memo (collection on noninterest bearing note)
NSF – No Sufficient Fund
BSC – Bank Service Charge

11. How much was the total balance per bank as of December 31, 2017?
12. Compute for the total balance per books as of December 31, 2017.
13. Compute for the deposits in transit as of December 31, 2017.
14. Compute for the outstanding checks as of December 31, 2017.
15. Compute for the adjusted cash balance as of December 31, 2017.

16. TAGBILARAN COMPANY has cash, short-term investments, accounts receivable and
inventory as its current assets. It has a current ratio of 1.0 and quick ratio of 0.5. If current
liabilities amounted to P1,000,000, compute for its inventory.
17. DUMAGUETE COMPANY has average inventory of P200,000 and ending inventory of
P100,000. How much is its beginning inventory?

18. BACOLOD COMPANY has working capital of P25,000. If current liabilities amounted to
P50,000, how much is total current assets?

19. ILO-ILO COMPANY provided the following for the current year:

Current Assets 500,000

Non-current Liabilities 400,000
Non-current Assets 300,000
Total Equity 200,000
Compute for the current ratio. (Round off to two decimal places).

20. CAMOTES COMPANY provided the following:

Net Income 2017 33,333

Net Income 2016 22,222
Net Income 2015 11,111
Total Assets 1,000,000
2015
Total Assets 1,500,000
2016
Total Assets 2,500,000
2017

Compute for the 2016 Return on Assets in terms of %. (Round off to two decimal places).

21. BANTAYAN COMPANY provided the following for the current year:
Current Assets 50,000
Prepaid Expenses 10,000
Total Liabilities 100,000
Equity 25,000

If current ratio is 2.5, compute for its total non-current liabilities. (Round off to two decimal
places).

22. SAMAR COMPANY provided the following for the current year:

Net Sales 500,000

Cost of Goods Sold ?
Operating Income 100,000
Selling and Administrative Expenses 100,000

Compute for the Gross Profit Ratio in terms of %. (Round off to two decimal places)
23. LEYTE COMPANY provided the following for the current year:

Income after interest and taxes 100,000

Income before taxes but after interest 60,000
Income after taxes but before interest 40,000

Compute for the Times Interest Earned. (Round off to two decimal places)

24. SIQUIJOR COMPANY provided the following information:

2016 Accounts Receivable 40,000

2017 Accounts Receivable 60,000
Total Sales 450,000
Cash Sales 50,000

Compute for the Average Collection Period. (Round off to two decimal places)
25. ROMBLON COMPANY provided the following for the current year:

Current Assets 500,000

Current Liabilities 250,000
Noncurrent Assets 500,000
Noncurrent Liabilities 250,000

Compute for the Equity Ratio in %. (Round off to two decimal places)

26. BENGUET COMPANY provided the following for the current year:

Current Assets 500,000

CurrentLiabilities 400,000
Noncurrent Assets 300,000
Noncurrent Liabilities 200,000

Compute for the Debt to Equity Ratio in %. (Round off to two decimal places)

27. The accounts receivable for AKLAN COMPANY was P140,000 at the beginning of the year
and P180,000 at the end of the year. The accounts receivable turnover for the year was 8.5 and
15% of total sales were cash sales. Compute for total sales for the year.

28. ZAMBOANGA COMPANY has sales of P5,000,000 per year (all credit) and an average
collection period of 35 days. What is its average amount of accounts receivable outstanding ?
(round off to two decimal places)

29. SULU COMPANY’s debt to equity ratio is 0.6. Current liabilities are P120,000, long-term
liabilities are P360,000, and working capital is P140,000. Compute for the total assets (round off
to two decimal places).

30. The accounts receivable for MAGUINDANAO COMPANY was P200,000 at the beginning of
the year and P300,000 at the end of the year. The accounts receivable turnover for the year
was 10.0 and 10% of total sales were cash sales. Compute for the total sales for the year (round
off to two decimal places).

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