47.ABC Corp had a cash balance of P500,000 in its books at Dec 31. The following are additional information for the entity: Cash in BDO, P200,000 (compensating balance of P50,000 is legally restricted) Cash in BPI, (P2,000) deducted from the balance Cash on hand, P10,000 (includes post dated check of P6,000) Petty Cash Fund, P5,000 (includes petty cash voucher of P1,500) How would the compensating balance be shown in the financial statements at Dec 31? Deduction from cash balance Shown as other asset and a disclosure on the nature of the restriction Notes to financial statements only Shown as current liability

47.ABC Corp had a cash balance of P500,000 in its books at Dec 31. The following are additional information for the entity: Cash in BDO, P200,000 (compensating balance of P50,000 is legally restricted) Cash in BPI, (P2,000) deducted from the balance Cash on hand, P10,000 (includes post dated check of P6,000) Petty Cash Fund, P5,000 (includes petty cash voucher of P1,500) How would the compensating balance be shown in the financial statements at Dec 31? Deduction from cash balance Shown as other asset and a disclosure on the nature of the restriction Notes to financial statements only Shown as current liability

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.5.1C

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ABC Corp had a cash balance of P500,000 in its books at Dec 31. The following are additional information for the entity: Cash in BDO, P200,000 (compensating balance of P50,000 is legally restricted) Cash in BPI, (P2,000) deducted from the balance Cash on hand, P10,000 (includes post dated check of P6,000) Petty Cash Fund, P5,000 (includes petty cash voucher of P1,500) The adjusting entry related to cash at Dec 31 would include: Cr Expenses 1,500 Cr Cash 7,500 Cr Cash 9,500 Cr Receivables 6,000
ABC Corp had a cash balance of P500,000 in its books at Dec 31. The following are additional information for the entity: Cash in BDO, P200,000 (compensating balance of P50,000 is legally restricted) Cash in BPI, (P2,000) deducted from the balance Cash on hand, P10,000 (includes post dated check of P6,000) Petty Cash Fund, P5,000 (includes petty cash voucher of P1,500) How much is the correct cash balance at Dec 31? 442,500 444,500 450,500 500,000
trade Corp had a cash balance of P500,000 in its books at Dec 31. The following are additional information: Cash in BDO, P200,000 (compensating balance of P50,000 is legally restricted) Cash in BPI, (P2,000) deducted from the balance Cash on hand, P10,000 (includes post dated check of P6,000) Petty Cash Fund, P5,000 (includes petty cash voucher of P1,500) . adjusting entry related to cash at Dec 31 would include: Cr Expenses 1,500 Cr Receivables 6,000 Cr Cash 7,500 Cr Cash 9,500
The statement of financial position of VKS Company dated October 31,2021, shows cash of P2,177,870. The following items were found to comprise this amount: Cash in Bank1, (outstanding checks as of year-end totaled P50,200)-P290,320; Petty cash fund (including expense receipts of P2,500)-P15,000; Undeposited sales receipts -P47,200; Sinking fund cash – P500,000; Cash surrender value of life insurance policy –P800,000; Cash in foreign bank (in equivalent pesos) - P250,000; Cash travel advances in the hands of sales personnel-P25,000; Customer’s check on hand: Traveler’s check – P14,450; Customer’s check dated November 3, 2021- P7,400; Manager’s check- P8,500; 120-day BSP Treasury bills- P120,000; 90 day, BSP treasury bills – P100,000. What is VKS's correct amount of cash and cash equivalents on October 31, 2021?
9. The August 31 bank statement of Kelvin Inc. showed a balance of P113,000. Deducted in arriving at this amount was a customer's NSF check for P2,400 that had been returned. Kelvin had received no prior notice concerning this check. In addition to the bank statement, other records showed there were deposits in transit totaling P17,200 and that outstanding checks totaled P10,800. What is the cash balance per books at August 31 (prior to adjustments)? a. P121,800 c. P117,000 d. P115,400 b. P119,400 (Adapted)
AA Company had a unadjusted cash balance in its cash in BB Bank as of December 31, 2022 of P2,500,000, the following transactions were recorded in this account as of 12/31/2022: . Check payable to AA dated January 3, 2023 was recorded as receipts as of December 31, P145,000. • Check payable to Casio (a supplier) amounting to P210,000 dated December 27, 2022 recorded on 12/27/2022. • Check payable to Grab (a supplier), dated January 2, 2023 was delivered on December 30, 2022 amounting to P120,000. What is the correct balance of cash in BB as of December 31, 2022?
55. he statement of financial position of CPA Company dated October 31,2021, shows cash of P2,177,870. The following items were found to comprise this amount: Cash in Metrobank, (outstanding checks as of year-end totaled P50,200)-P290,320; Petty cash fund (including expense receipts of P2,500)-P15,000; Undeposited sales receipts -P47,200; Sinking fund cash – P500,000; Cash surrender value of life insurance policy –P800,000; Cash in foreign bank (in equivalent pesos) - P250,000; Cash travel advances in the hands of sales personnel-P25,000; Customer’s check on hand: Traveler’s check – P14,450; Customer’s check dated November 3, 2021- P7,400; Manager’s check- P8,500; 120-day BSP Treasury bills- P120,000; 90 day, BSP treasury bills – P100,000. What is CPA’s correct amount of cash and cash equivalents on October 31, 2021?
5. The cash account in the current asset section of the statement of financial position of Restoration Company showed a balance of P55,500. It was found to include the following items: Petty cash fund (P100 is in the form of paid vouchers) Checking account balance in the BPI Company, per bank statement (a P2,500 check is still outstanding) P 500 25,500 Undeposited receipts, including a post-dated check for P500 Currencies and coins awaiting deposit Bond sinking fund - cash Check drawn by management, returned by bank marked NSF 12,000 5,500 10,000 2,000 The correct cash balance for Restoration Company's statement of financial position is C. 42,400 D. 40,000 A. 43,000 B. 42,900
35. The balance sheet of Longgan Company showed a cash balance of P91,750. An examination of the books disclosed the following: Cash sales of P 12,000 from Jan. 1 to 7, 2020 were predated as of Dec. 28 to 31, 2019 and charged to the cash account. Customer's checks totaling P 4,500 deposited with and returned by the bank marked "NSF" on Dec. 27, 2019 were not recorded on the books. Checks of P5,600 in payment of liabilities were prepared before Dec. 31, 2019 and recorded in the books but withheld by the treasurer. Post-dated checks totaling P 3,400 are being held by the cashier as part of Cash. The company's experience shows that post-dated checks are eventually realized. The cash account includes P 20,000 being reserved for the purchase of minicomputer which will be delivered soon. Personal check of officers, P 2,700 were "redeemed" on Dec. 31, 2019, but returned to the cashier on Jan. 2, 2020. How much is the cash balance that should be shown in the Dec. 31, 2019 balance sheet? A. P…
The River Company's ledger showed a balance in its cash account at December 31, 2021 of P682,250, which was determined to consist of the following:Petty cash fund - P3,600Checking account in BDO (check of P6,000 is still outstanding). - P336,750Notes receivable in the possession of a collecting agency - P25,000Undeposited receipts (including a customer's check of P10,500 dated December 28, 2021 and traveler's check for P10,000) - P178,000Bond sinking fund cash - P134,000IOUs signed by employees - P4,900Total - P682,250At what amount should "Cash on hand and in bank" be reported at December 31, 2021?
14. The books of Hotsilog Service Inc. disclosed a cash balance of P48,757 on June 30. The bank statement as of June 30 showed a balance of P54,780. Additional information that might be useful in reconciling the two balances follows: a. Outstanding checks totaled P9,885 as of June 30. b. Deposit in transit totaled P13,425 as of June 30. C. There were bank service charges for June of P210 not yet recorded on the books. d. Hotsilog's account had been charged on June 26 for a customer's NSF check for P1,296. e. A bank memo stated that a customer's note for P9,000 and interest of P164 had been collected on June 27. f. Check payable to creditors for P3,000 was erroneously recorded on the books as P4,500. g. The deposit of June 24 was recorded on the books as P2,895, but it was actually a deposit of P2,700. h. Hotsilog's account had been credited by the bank for P600. This amount should have been credited to Langsilog. How much is the correct cash balance at the end of the month? A. 57,720…
45. At what amount will the account "Cash" appear on the December 31, 2022 balance sheet? The cash account of the Siopao Corporation as of December 31, 2022 consists of the following: On deposit in current account with BDO Bank Cash collection not yet deposited to the bank P 900,000 350,000 150,000 70,000 A customer's check returned by the bank for insufficient fund A check drawn by the Vice-President of the Corporation dated January 15, 2023 A check drawn by a supplier dated December 28, 2022 for goods returned by the Corporation 60,000 A check dated May 31, 2022 drawn by the Corporation against the BPI Bank in payment of customs duties. Since the importation did not materialize, the check was returned by the customs broker. This check was an outstanding check in the reconciliation of the BPI Bank account 410,000 Petty Cash fund of which P10,000 is in currency; P7,200 in form of employees' I.O.U.; and P2,800 is supported by approved petty cash vouchers for expenses all dated prior to…