Accounting_1st Quiz Cash and Cash Equivalent 2011

Name: ______________________________ 1. The following data pertain to Lincoln Corporation on December 31, 2009: Current account at Metrobank Current account at Allied Bank Payroll account Foreign bank account (in equivalent pesos) Savings deposit in a closed bank Postage stamps Employee’s post dated check IOU from employees Credit memo from a vendor for a purchase return Traveler’s check Money order Petty cash fund (P4,000 in currency and expense receipts for P6,000) Pension fund DAIF check of customer Customer’s check dated 1/1/10 Time deposit – 30 days Money market placement (due 6/30/10) Treasury bills, due 3/31/10 (purchased 12/31/09) Treasury bills, due 1/31/10 (purchased 1/1/09)

P1,800,000 (100,000) 500,000 800,000 150,000 1,000 4,000 10,000 20,000 50,000 30,000 10,000 2,000,000 15,000 80,000 200,000 500,000 200,000 300,000

Compute for the cash and cash equivalents that should be reported on the December 31, 2009 balance sheet. a. P2,784,000 c. P3,784,000 b. P3,084,000 d. P3,584,000 rro 2. Ralf Corporation had the following account balances at December 31, 2009: Cash on hand and in bank Cash restricted for bonds payable due on June 30, 2010 Time deposit Savings deposit set aside for dividends payable on June 30, 2010

5. Cash in bank balance of William Co. on January 1, 2009 was P70,000 representing 35% paid-up Capital of its authorized share capital of P200,000. During the year you ascertained the following postings to some accounts, as follows: Petty cash fund Accounts receivable trade Subscription receivable Delivery equipment Accounts payable trade Bank loan Accrued expenses Subscribed share capital Unissued share capital Authorized share capital Sales Purchases Expenses (including depreciation of P5,000 and accrued expenses of P1,500)

1,000,000 3,000,000 500,000

3. On December 31, 2009, Alfonso Company had the following cash balances: P15,000,000 50,000 5,000,000 2,000,000

Cash in bank includes P500,000 of compensating balance against short term borrowing arrangement at December 31, 2009. The compensating balance is legally restricted as to withdrawal by Alfonso. A check of P300,000 dated January 15, 2010 in payment of accounts payable was recorded and mailed on December 31, 2009. In the current assets section of the December 31, 2009 balance sheet, what amount should be reported as “cash and cash equivalents”? a. P21,850,000 c. P21,800,000 b. P16,850,000 d. P14,850,000 4. On January 1, 2009, Tinoc Company borrows P2,000,000 from National Bank at 12% annual interest. In addition, Tinoc is required to keep a compensatory balance of P200,000 on deposit at National Bank which will earn interest at 4%. The

Debit P 2,000 450,000 60,000 50,000 280,000 35,000

Credit P290,000 50,000 430,000 80,000 1,500 60,000

130,000 200,000 450,000 430,000 90,000

Cash in bank balance at December 31, 2009 was a. P41,500 c. P34,500 b. P33,000 d. P39,500 6. An office supplies enterprise, operating on a calendaryear basis, has the following data in its accounting records:

P2,500,000

In the current assets section of Ralf’s December 31, 2009 balance sheet, what total amount should be reported as cash and cash equivalents? a. P7,000,000 c. P6,500,000 b. P6,000,000 d. P5,500,000

Cash in bank Petty cash fund Time deposit Saving deposit

effective interest that Tinoc pays on its P2,000,000 loan is a. 10.0% c. 12.0% b. 11.6% d. 12.8%

Cash Inventory Accounts receivable Accounts payable Sales Cost of goods sold Operating expenses

01/01 P 47,000 101,000 82,000 68,000

12/31 P

93,000 116,000 63,000 1,150,000 900,000 200,000

What is the expected cash balance for December 31? a. P50,000 c. P 76,000 b. P66,000 d. P134,000 CIA 1189 IV-14 7. The petty cash fund of Guiguinto Company on December 31, 2009 is composed of the following: Coins and currencies Petty cash vouchers: Gasoline payments Supplies Cash advances to employees Employee’s check returned by bank marked NSF Check drawn by the company payable to the order of the petty cash custodian, representing her salary A sheet of paper with names of employees together with contribution for a birthday gift of a co-employee in the amount of

P14,000 3,000 1,000 2,000 5,000 20,000

8,000 P53,000

The petty cash ledger account has an imprest balance of P50,000. What is the correct amount of petty cash on December 31, 2009? a. P34,000 c. P39,000 b. P14,000 d. P42,000

1. On December 31, 2009, the cash account of Jen Company has a debit balance of P3,500,000. An analysis of the cash account shows the following details: Undeposited collections Cash in bank-PCIB checking account Cash in bank-PNB (overdraft) Undeposited NSF check received from a customer, dated December 1, 2009 Undeposited check from a customer, dated January 15, 2010 Cash in bank-PCIB (fund for payroll) Cash in bank-PCIB (savings deposit) Cash in bank-PCIB (money market instrument, 90 days) Cash in foreign bank (restricted) IOUs from officers Sinking fund cash Listed stock held as temporary investment

P

60,000 500,000 (50,000) 15,000 25,000 150,000 100,000

2,000,000 100,000 30,000 450,000 120,000 P3,500,000

Cash and cash equivalents on Jen’s December 31, 2009 balance sheet should be a. P2,760,000 c. P2,885,000 b. P2,810,000 d. P2,935,000 rpcpa/Valix 6-20 2. Diversity Corporation's checkbook balance on December 31, 2009, was P800,000. In addition, Diversity held the following items in its safe on December 31: Check payable to Diversity Corporation, dated January 2, 2010, not included in December 31 checkbook balance Check payable to Diversity Corporation, deposited December 20, and included in December 31 checkbook balance, but returned by bank on December 30, stamped "DAIF." The check was redeposited January 2, 2010, and cleared January 7 Check drawn on Diversity Corporation's account, payable to a vendor, dated and recorded December 31, but not mailed until January 15, 2010

P200,000

40,000

100,000

The proper amount to be shown as cash on Diversity's balance sheet at December 31, 2009, is a. P760,000 c. P860,000 b. P800,000 d. P975,000 P2 M10 pp. 377 Wiley 07-08 3. The Ingersoll Co.’s ledger showed a balance in its cash account at December 31, 2009 of P341,125 which was determined to consist of the following: Petty cash fund Cash in Allied Bank per bank statement with a check for P3,000 still outstanding Notes receivable in the possession of a collecting agency Undeposited receipts, including postdated check for P5,250 and traveler’s check for P5,000

P

1,800

168,375 12,500 89,000

Bond sinking fund – cash IOUs signed by employees Paid vouchers not yet recorded Total

63,750 2,475 3,225 P341,125

At what amount should “Cash on hand and in bank” be reported on Ingersoll’s balance sheet? a. P267,375 c. P331,125 b. P250,925 d. P314,675 RPCPA 1084-AMP 4. The following items were included as cash in the books of Gotch Co.: Checking account at Security Bank Checking account at BPI Checking account at Citytrust used for payment of salaries Postage stamps Employee’s post-dated check I.O.U. from an employee A check marked “DAIF” Postal money order Petty cash fund (P324 in expense receipts) Certificate of time deposit with BPI A gold ring surrendered as security by a customer who lost his wallet (at market value)

(P1,200) 5,335 5,500 107 2,300 200 1,250 500 500 5,000 1,500

The correct amount that should be reported as cash is a. P11,835 c. P16,511 b. P11,011 d. P11,511 RPCPA 0592 5. Aguinaldo Corporation had the following transactions in its first year of operations: Sales (90% collected in the first year) Disbursements for costs and expenses Purchases of equipment for cash Proceeds from issuance of ordinary shares Payments on short-term borrowings Proceeds from short-term borrowings Depreciation on equipment Disbursements for income taxes Bad debt write-offs

P750,000 600,000 200,000 250,000 25,000 50,000 40,000 45,000 30,000

What is the cash balance at December 31 of the first year? a. P 75,000 c. P 85,000 b. P105,000 d. P140,000 6. Pops Co. established a P3,000 petty cash fund. found the following items in the fund:

You

Cash and currency P1,683.80 Expense vouchers 829.80 Advance to salesman 200.00 IOU from employee 300.00 In the entry to replenish the fund, what amount should be debited to Cash Short and Over? a. P500.00 c. P13.60 b. P300.00 d. P 0 MC7-8 FAR Cabrera, 2005