ASSETS PROBLEM SOLVING.docx - PROBLEM SOLVING CASH AND CASH EQUIVALENTS CHERYNA ROSE C ALFONSO BSAIS-2 Multiple Choice Identify the letter of the choice

# ASSETS PROBLEM SOLVING.docx - PROBLEM SOLVING CASH AND CASH...

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PROBLEM SOLVING CASH AND CASH EQUIVALENTS CHERYNA ROSE C. ALFONSO BSAIS-2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question 1.Mercy West Company showed a cash balance per ledger of 2,672,000 on December 31. The bank statement, however showed a balance of 5,289,000 at the same date. The only reconciling items consisted of a bank service charge of 3,000, a large number of outstanding checks totaling 890,000 and a deposit in transit. What is the deposit in transit on December 31? a.1,730,000b.2,617,000c.890,000d.893,000 2.The statement of financial position of Gemma Company shows cash of 330,820. The following items were found to comprise this total amount:Checking account in Metrobank (outstanding checks as ofYear end totaled 15,200)105,200Savings account on FBC Bank30,800Petty Cash Fund (including expense receipts of 250)1,500Cash on hand (undeposited sales receipts)4,200Sinking fund cash35,000Cash in foreign bank (in equivalent peso)65,000Customer’s check on handTraveler’s Check14,000Manager’s Check23,120Short Term Treasury Bills52,000What is the correct amount of cash? 3.On, December 31, 2011, Gin Company had the following cash balances:Cash in Bank 5,000,000Petty Cash Fund50,000Time Deposit, one year due Mar 1, 20121,000,000Savings Deposit500,000A check of 100,000 dated Jan 15, 2012 in payment of accounts payable was recorded and mailed on Dec 29,2011. How much cash and cash equivalents should be reported on December 31, 2011? 4.Combo Co.’s checkbook balance at December 31, 2012 was 180,000. In addition,

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Combo Co. held the following items in it’s safe on that date: 5.Magenta Co. general ledger showed a balance of 2,205,600 in its cash account on December 31, 2012. Included in this balance are the following items:Customer’s NSF check20,000IOUs1,200Postage Stamps6,000Cash sinking fund500,000Customer’s Post dated check Jan 20135,400Travel Advances4,000 a.2,205,600b.1,900,000c.6,000,000d.1,674,400 ANSWERS – CASH AND CASH EQUIVALENTS 1. A Book Bal 2,672,000 Bank Balance 5,289,000 BSC 3,000 Outstanding Check 890,000 Adjustment 2,669,000 Total 4,399,000 Adjustment 2,669,000 Deposit In Transit 1,730,000 2. A Checking account in Metroback 105,200 Savings account at FBC 30,800 PCF (1,500-250) 1,250 Cash on hand 4,200 Cash in foreign bank 65,000 Customer’s Check on hand Traveler’s Check 14,000 Manager’s Check 23,120 Total P243,570 3. C 4. A Reported Checkbook balance 180,000 Adjustments: Customer’s postdated check included in the balance (65,000) Customer’s check returned by bank marked DAIF (20,000) Company check recorded but not yet mailed 15,000 Cash reported on December 31, 2012 balance sheet 110,000 5. D Balance per general ledger 2,205,600 Non cash items : Customer’s NSF (20,000) IOUs (1,200) Postage stamps (600) Cash in sinking fund (500,000) Customer’s post dated checks (5,400) Travel advances (4,000) Correct cash balance 1,674,400
PROBLEM SOLVING RECEIVABLES CHERYNA ROSE C. ALFONSO BSAIS-2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.

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