The trial balance of MasqueCompany at December 31, 2021includes the following accounts: Petty cash fund –P15,000; Cash on hand –P190,700; Metrobank current account –P310,200; Allied Bank current account #1 –P320,000; Allied Bank current account #2 –P40,000 credit; Security Bank savings account –P150,000. Additional information: 1.The petty cash fund consisted of the following items as of December 31, 2021: •Currency and coins, P8,500• Employees’ advances, P1,800 •Currency in an envelope marked “collections for charity” with employees’ names attached, P2,000 •Unreplenished petty cash vouchers, P2,240 •Replenishment check drawn by MasqueCompany payable to the petty cashier, P2,320 2.Cash on hand includes the following items: •Customer’s check for P30,000 returned by bank on December 26, 2021 due to insufficient funds, but subsequently redeposited and cleared by the bank on January 10, 2022. •Postal money orders received from customers, P18,000• Customer’s check for P15,000 dated January 10, 2022 received on December 23, 2021. 3.Included among the checks drawn by MasqueCompany against the Metrobank currentaccount and recorded in December 2021are the following: •Check No. 1214 written and dated December 22, 2021 and delivered to payee on January 3, 2022, P25,000 •Check No. 1219 written December 26, 2020 dated January 30, 2022, and delivered to payee on December 28, 2021, P43,000. 4.The credit balance in Allied Bank current account #2 represents checks drawn in excess of the deposit balance that are still outstanding at December 31, 2021. A right of offset exists in the agreement between Allied Bank and its depositors. 5.The savings account deposit in Security Bank was set aside by the Board of Directors for the acquisition of new equipment. This amount is expected to be disbursed in the next three months from December 31, 2021. a.What is the correct petty cash balance reported in December 31, 2021 statement of financial position? b.What is the total amount reported in Masque Company’s December 31, 2021 statement of financial position as cash on hand and in banks?

The trial balance of MasqueCompany at December 31, 2021includes the following accounts: Petty cash fund –P15,000; Cash on hand –P190,700; Metrobank current account –P310,200; Allied Bank current account #1 –P320,000; Allied Bank current account #2 –P40,000 credit; Security Bank savings account –P150,000. Additional information: 1.The petty cash fund consisted of the following items as of December 31, 2021: •Currency and coins, P8,500• Employees’ advances, P1,800 •Currency in an envelope marked “collections for charity” with employees’ names attached, P2,000 •Unreplenished petty cash vouchers, P2,240 •Replenishment check drawn by MasqueCompany payable to the petty cashier, P2,320 2.Cash on hand includes the following items: •Customer’s check for P30,000 returned by bank on December 26, 2021 due to insufficient funds, but subsequently redeposited and cleared by the bank on January 10, 2022. •Postal money orders received from customers, P18,000• Customer’s check for P15,000 dated January 10, 2022 received on December 23, 2021. 3.Included among the checks drawn by MasqueCompany against the Metrobank currentaccount and recorded in December 2021are the following: •Check No. 1214 written and dated December 22, 2021 and delivered to payee on January 3, 2022, P25,000 •Check No. 1219 written December 26, 2020 dated January 30, 2022, and delivered to payee on December 28, 2021, P43,000. 4.The credit balance in Allied Bank current account #2 represents checks drawn in excess of the deposit balance that are still outstanding at December 31, 2021. A right of offset exists in the agreement between Allied Bank and its depositors. 5.The savings account deposit in Security Bank was set aside by the Board of Directors for the acquisition of new equipment. This amount is expected to be disbursed in the next three months from December 31, 2021. a.What is the correct petty cash balance reported in December 31, 2021 statement of financial position? b.What is the total amount reported in Masque Company’s December 31, 2021 statement of financial position as cash on hand and in banks?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The trial balance of MasqueCompany at December 31, 2021includes the following accounts:

Petty cash fund –P15,000; Cash on hand –P190,700; Metrobank current account –P310,200; Allied Bank current account #1 –P320,000; Allied Bank current account #2 –P40,000 credit; Security Bank savings account –P150,000.

Additional information:

1.The petty cash fund consisted of the following items as of December 31, 2021:

•Currency and coins, P8,500•

Employees’ advances, P1,800

•Currency in an envelope marked “collections for charity” with employees’ names attached, P2,000

•Unreplenished petty cash vouchers, P2,240

•Replenishment check drawn by MasqueCompany payable to the petty cashier, P2,320

2.Cash on hand includes the following items:

•Customer’s check for P30,000 returned by bank on December 26, 2021 due to insufficient funds, but subsequently redeposited and cleared by the bank on January 10, 2022.

•Postal money orders received from customers, P18,000•

Customer’s check for P15,000 dated January 10, 2022 received on December 23, 2021.

3.Included among the checks drawn by MasqueCompany against the Metrobank currentaccount and recorded in December 2021are the following:

•Check No. 1214 written and dated December 22, 2021 and delivered to payee on January 3, 2022, P25,000

•Check No. 1219 written December 26, 2020 dated January 30, 2022, and delivered to payee on December 28, 2021, P43,000.

4.The credit balance in Allied Bank current account #2 represents checks drawn in excess of the deposit balance that are still outstanding at December 31, 2021. A right of offset exists in the agreement between Allied Bank and its depositors.

5.The savings account deposit in Security Bank was set aside by the Board of Directors for the acquisition of new equipment. This amount is expected to be disbursed in the next three months from December 31, 2021.

a.What is the correct petty cash balance reported in December 31, 2021 statement of financial position?

b.What is the total amount reported in Masque Company’s December 31, 2021 statement of financial position as cash on hand and in banks?

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