Name: Al-Ameen P.
Macabaning Date: February 24, 2021
Course & Year: BSA – 1A Score: ________________
Problem 1-1 (IAA)
On December 31, 2020, Albania Company provided the following data:
Cash in bank 3,000,000
Time deposit – 30 days 1,000,000
Money market placement due on June 30, 2021 2,000,000
Saving deposit in closed bank 100,000
Sinking fund for bond payable due June 30, 2022 1,500,000
Petty cash fund 20,000
• The cash in bank included customer check of P200,000 outstanding for 18
months.
• Check of P250,000 in payment of accounts payable was dated and recorded on
December 31, 2020 but mailed to creditors on January 15, 2021.
• Check of P100,000 dated January 31, 2021 in payment of accounts payable was
recorded and mailed December 31, 2020.
• The reporting period is the calendar year.
The cash receipts journal was held open until January 15, 2021 during which time an
amount of P450,000 was collected and recorded on December 31, 2020.
This study source was downloaded by 100000841585059 from CourseHero.com on 02-10-2022 07:21:44 GMT -06:00
https://www.coursehero.com/file/94059775/Assignment-1pdf/
Required:
1. Prepare adjusting entries on December 31, 2020.
a. Accounts Receivable P200,000 - Stale check
Cash in bank P200,000
b. Cash in bank P250,000 - Unreleased check
Accounts Payable P250,000
c. Cash in bank P100,000 - Postdated check
Accounts Payable P100,000
d. Accounts Receivable P450,000 - 2021 Collections
Cash in bank P450,000 recorded on 2020
2. Compute the total amount of cash and cash equivalents that should be
reported on December 31, 2020.
Cash in bank P2,700,000
Time deposit – 30 days 1,000,000
Petty cash fund 20,000
Cash and Cash Equivalents Total P3,720,000
3. Explain the presentation of the items excluded from cash and cash
equivalents.
Excluded items Classification
Money market placement due on June 30, 2021 - Short term Investments
Saving deposit in closed bank - Other Non-current Asset
Sinking fund for bond payable due June 30, 2022 - Long term investment
This study source was downloaded by 100000841585059 from CourseHero.com on 02-10-2022 07:21:44 GMT -06:00
https://www.coursehero.com/file/94059775/Assignment-1pdf/
Problem 1-2 (IAA)
Argentina Company reported the following accounts on December 31, 2020:
Cash on hand 1,000,000
Petty cash fund 50,000
Security Bank current account 2,000,000
PNB current account 1,500,000
BDO current account (overdraft) (200,000)
BSP treasury bill – 120 days 3,000,000
BPI time deposit – 90 days 2,000,000
Bond sinking fund 2,500,000
• The cash on hand included a customer postdated check of P150,000 and postal
money order of P50,000.
• The petty cash fund included unreplenished petty cash vouchers for P10,000 and
an employee check for P5,000 dated January 31, 2021.
• The BPI time deposit is set aside for acquisition of land to be made in early
January 2021.
• The bond sinking fund is set aside for payment of bond payable due December
31, 2021.
This study source was downloaded by 100000841585059 from CourseHero.com on 02-10-2022 07:21:44 GMT -06:00
https://www.coursehero.com/file/94059775/Assignment-1pdf/
Required:
1. Prepare adjusting entries on December 31, 2020.
a. Accounts Receivable P150,000 - postdated check
Cash on hand P150,000
b. Expenses P10,000 - Unreplenished PCF
Receivable from employees 5,000 - employee check
Petty cash fund P15,000
2. Compute the total amount of cash and cash equivalents.
Cash on hand P850,000
Petty cash fund 35,000
Security Bank current account 2,000,000
PNB current account 1,500,000
Bonds sinking fund 2,500,000
Cash and Cash Equivalents Total P6,885,000
3. Explain the presentation of the items excluded from cash and cash
equivalents.
Excluded items Classification
BDO current account (overdraft) - Current Liability
BSP treasury bill – 120 days - Short-term financial asset
BPI time deposit – 90 days - Non-current asset
This study source was downloaded by 100000841585059 from CourseHero.com on 02-10-2022 07:21:44 GMT -06:00
https://www.coursehero.com/file/94059775/Assignment-1pdf/
Problem 1-3 (IAA)
Armenia Company reported the following information on December 31, 2020:
Cash on hand 1,000,000
Petty cash fund 50,000
Cash in bank 4,000,000
Saving deposit 2,000,000
7,050,000
• Cash on hand included the following:
a. Customer check of P100,000 returned by bank December 26, 2020 due to
insufficient fund but subsequently redeposited and cleared by bank January 5,
2021.
b. Customer check for P150,000 dated January 15, 2021 received December 22,
2020.
c. Postal money orders received from customers, P200,000.
• The petty cash fund consisted of the following items:
Currency and coins 2,000
Employees’ IOUs 10,000
Currency in envelope marked collections for Christmas party 5,000
Check drawn by Armenia payable to petty cash 33,000
50,000
• Check written and dated December 22, 2020 and delivered to payee on January
5, 2021, P200,000.
• Check written December 26, 2020 and dated January 31, 2021 delivered to
payee on December 26, 2020, P300,000.
This study source was downloaded by 100000841585059 from CourseHero.com on 02-10-2022 07:21:44 GMT -06:00
https://www.coursehero.com/file/94059775/Assignment-1pdf/
Required:
1. Prepare adjusting entries on December 31, 2020.
a. Accounts Receivable P100,000
Cash on hand P100,000
b. Accounts Receivable P150,000
Cash on hand P150,000
c. Receivables from Employees P10,000
Collections for Christmas Party P5,000
Receivables from Armenia P33,000
Petty cash fund P48,000
d. Cash in bank P200,000
Accounts Payable P200,000
e. Cash in bank P300,000
Accounts Payable P300,000
2. Compute the total cash on December 31, 2020.
Cash on hand P750,000
Petty cash fund 2,000
Cash in bank 4,500,`000
Saving deposit 2,000,000
Cash total P7,252,000
This study source was downloaded by 100000841585059 from CourseHero.com on 02-10-2022 07:21:44 GMT -06:00
https://www.coursehero.com/file/94059775/Assignment-1pdf/
Problem 1-4 (PHILCPA Adapted)
Callous Company reported the following accounts on December 31, 2020:
Cash on hand 200,000
Petty cash fund 20,000
Philippine Bank current account 5,000,000
City Bank current account No. 1 4,000,000
City Bank current account No. 2 (overdraft) (100,000)
Asia Bank saving account 250,000
Asia Bank time deposit, 90 days 2,000,000
Cash on hand included the following items:
• Customer check for P35,000 returned by bank December 26, 2020 due to
insufficient fund but subsequently redeposited and cleared by the bank on
January 10, 2021.
• Customer check for P15,000 date January 10, 2021, received December 23,
2020.
The petty cash fund consisted of the following items:
Currency and coins 5,000
IOUs from officers 2,000
Unreplenished petty cash vouchers 12,000
Included among the checks drawn by Callous Company against the Philippine Bank
current account and recorded in December 2020 were the following:
• Check written and dated December 23, 2020 and delivered to payee on January
31, 2021, P25,000.
• Check written December 26, 2020, dated January 30, 2021, delivered to payee
on December 28, 2020, P45,000.
This study source was downloaded by 100000841585059 from CourseHero.com on 02-10-2022 07:21:44 GMT -06:00
https://www.coursehero.com/file/94059775/Assignment-1pdf/
1. Compute the total cash and cash equivalents.
Cash on hand P150,000
Petty cash fund 5,000
Philippine Bank current account 5,070,000
City Bank current account No. 1 4,000,000
City Bank current account No. 2 (overdraft) (100,000)
Asia Bank saving account 250,000
Asia Bank time deposit, 90 days 2,000,000
Cash and Cash Equivalents Total P11,375,000
2. Prepare adjusting entries on December 31, 2020.
a. Accounts Receivable P35,000
Cash on hand P35,000
b. Accounts Receivable P15,000
Cash on hand P15,000
c. Receivables from officers P2,000
Expenses P12,000
Cash short or over P1,000
Petty cash fund P15,000
d. Cash in bank – Philippine bank P25,000
Accounts Payable P25,000
e. Cash in bank – Philippine bank P45,000
Accounts Payable P45,000
f. Cash in bank – City Bank P100,000
Bank overdraft – Acc. No. 2 P100,000
This study source was downloaded by 100000841585059 from CourseHero.com on 02-10-2022 07:21:44 GMT -06:00
https://www.coursehero.com/file/94059775/Assignment-1pdf/
Powered by TCPDF (www.tcpdf.org)
