PROBLEM NO.
Zeus Company provided the following chronological transactions in
relation to petty cash:
1. November 10, 2019- The entity established a fund of 10,000.
2. November 29, 2019- Replenished the fund. The petty cash items
include the following: Currency and coin, 2,000; Supplies, 5,000;
Telephone, 1,800; Postage, 1,200.
3. December 31, 2019- End of accounting period. The fund was not
replenished. The fund is composed of the following: currency and
coin, 7,000; Supplies, 1,500; Postage, 500; Miscellaneous
Expense, 1,000.
4. January 1, 2020- The adjustment made on December 31, 2019 is
reversed.
5. February 22, 2020- The fund is replenished and increased to
15,000; The composition of the fund is as follows: Currency and
coin, 1,000; Supplies, 4,500; Postage, 3000; Miscellaneous,
1,500.
Prepare all entries to record the transactions under Imprest fund
system.
PROBLEM NO. 2
The cash account of the NCOV Corporation as of December 31, 2006 consists of the
following:
On deposit in current account with Real Bank P 900,000
Cash collection not yet deposited to the bank 350,000
A customer’s check returned by the bank for 150,000
insufficient fund
A check drawn by the Vice-President of the
Corporation dated January 15, 2007
70,000
A check drawn by a supplier dated December 28,
2006 for goods returned by the Corporation
60,000
A check dated May 31,2006 drawn by the
Corporation against the Piggy 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 Piggy Bank 410,000
account
Petty Cash fund of which P5,000 is in currency;
P3,600 in form of employees’ I.O.U. s; and
P1,400 is supported by approved petty cash
vouchers for expenses all dated prior to
closing of the books on December 31, 2006
10,000
Total 1,950,000
Less: Overdraft with Piggy Bank secured by a
Chattel mortgage on the inventories
300,000
Balance per ledger P1,650,000
Question:
At what amount will the account “Cash” appear on the December 31, 2006 balance
sheet?
PROBLEM NO. 3
You noted the following composition of Valentines Company’s “cash account” as of
December 31, 2006 in connection with your audit:
Demand deposit account P2,000,000
Time deposit – 30 days 1,000,000
NSF check of customer 40,000
Money market placement (due June 30, 1,500,000
2007)
Savings deposit in a closed bank 100,000
IOU from employee 20,000
Pension fund 3,000,000
Petty cash fund 10,000
Customer’s check dated January 1, 2007 50,000
Customer’s check outstanding for 18
months 40,000
Total P7,760,000
Additional information follows:
a) Check of P200,000 in payment of accounts payable was recorded on December 31,
2006 but mailed to suppliers on January 5, 2007.
b) Check of P100,000 dated January 15, 2007 in payment of accounts payable was
recorded and mailed on December 31, 2006.
c) The company uses the calendar year. The cash receipts journal was held open
until January 15, 2007, during which time P400,000 was collected and recorded
on December 31, 2006.
Question:
The cash and cash equivalents to be shown on the December 31, 2006 balance sheet
is.
