PROBLEMS 1. On December 31, 2023, Popoy Company had the following cash balances: Cash in bank Petty cash fund (all funds were reimbursed on Dec. 31, 2023) Treasury bills Savings Deposit 5,000,000 50,000 1,500,000 800,000 Cash in bank includes P500,000 of compensating balance against short-term borrowing arrangement on December 31, 2023. The compensating balance is legally restricted as to withdrawal by Popoy. A check of P1,000,000 dated January 15, 2024, in payment of accounts payable was recorded and mailed on December 31, 2023. In the December 31, 2023, statement of financial position, what amount should be reported as "cash and cash equivalents"? 2. Quinn Company had the following account balances on December 31, 2023: Petty cash fund Cash on hand Cash in bank current account Cash in bank payroll account Cash in bank-restricted account for plant addition, expected to be disbursed in 2024 Cash in sinking fund set aside for bond payable due June 30, 2025, P50,000 500,000 4,000,000 1,000,000 500,000 1,500,000 The petty cash fund includes unreplenished December 2023 petty cash expense vouchers of P5,000 and employee IOUS of P5,000. The cash on hand includes a P100,000 check payable to Quinn dated January 15, 2024. Quinn has agreed to maintain a minimum balance of P200,000 in its unrestricted current bank account. What should be reported as "cash and cash equivalents" on December 31, 2023? 3. The following information pertains to Ursula Company as of December 31, 2023: Cash balance per bank statement Deposit in transit 4. P4,000,000 1,300,000 Checks outstanding (including certified check of P100,000) Customer note collected by bank for Ursula 500,000 150,000 NSF checks of customers returned by bank 200,000 Bank service charge shown in December bank statement 20,000 Error made by Ursula in recording a check that cleared the bank in December (check was drawn in December for P100,000 but recorded at P10,000) 90,000 What is the cash balance per books December 31, 2023? Wes Company provided the following data for the purpose of reconciling the cash balance per book: Balance per book P170,000 Outstanding checks (including certified check of P20,000) Deposit in transit 100,000 40,000 December NSF checks (of which P10,000 had been re-deposited and cleared on 12/31) Erroneous credit to Wes' account, representing proceeds of loan granted to Yes Company Proceeds of note collected by bank for Wes, net of service charge of P4,000 Erroneous bank charge 30,000 60,000 150,000 3,000 A check of P5,000 in payment of account was recorded by the company as 500 How much is the correct cash balance to be shown in the company's December 31, 2019, statement of financial position? 5. On January 4, 2024, the petty cash fund of Mulan Company has an imprest balance of P30,000 and includes the following items: Petty cash vouchers: Coins Currencies Customer check dated December 28, 2023 - undeposited # 5501 Transportation (12/26/2023) # 5503 Postage (12/27/2023) #5506 Miscellaneous (12/28/2023) # 5509 Meals (12/29/2023) # 5509 Repairs (1/2/2024) # 5509 Advances to employee (1/3/2024) P3,000 4,900 45,000 4,500 1,700 4,000 4,300 3,200 2,400 Check drawn by Mulan Company payable to Cashier Unused postage stamps 2,000 700 Currency representing unclaimed salaries of employees who worked December 12-30, 2023 in an envelope (per pay slip salaries totaled P8,000) Q1: How much is the cash shortage/overage? Q2: How much is the balance of petty cash fund as of December 31, 2023? 7,500 6. All Might Company had the following bank reconciliation as of October 31, 2023: Balance per bank, October 31 P420,000 Add: Deposit in Transit Erroneous bank debit Bank service charge Less: Outstanding checks Credit memo Balance per book, Oct. 31 P 80,000 15,000 5,000 100,000 P520,000 P 70,000 50,000 120,000 P400,000 All reconciling items at October 31, 2023 cleared through the bank in November. Items for November are the following: Deposits in transit and Outstanding checks were P 40,000 and P60,000, respectively. Proceeds from bank loan was P 20,000 and a debit memo of P8,000 are not yet recorded on the depositor's books. Total Bank receipts was P300,000; Total Bank disbursements was P250,000. Q1: In a four-column proof of cash, what is the amount of Adjusted Cash Receipts in November? Q2: In a four-column proof of cash, what is the Adjusted Cash Disbursements in November? Q3. How much is the Adjusted Cash in Bank?