Name: ______________________________

1. The following data pertain to Lincoln Corporation on December 31, 2009:

Current account at MetrobankP1,800,000

Current account at Allied Bank(100,000)

Payroll account500,000

Foreign bank account (in equivalent pesos)800,000

Savings deposit in a closed bank150,000

Postage stamps1,000

Employees post dated check4,000

IOU from employees10,000

Credit memo from a vendor for a purchase return20,000

Travelers check50,000

Money order30,000

Petty cash fund (P4,000 in currency and expense receipts for P6,000)10,000

Pension fund2,000,000

DAIF check of customer15,000

Customers check dated 1/1/1080,000

Time deposit 30 days200,000

Money market placement (due 6/30/10)500,000

Treasury bills, due 3/31/10 (purchased 12/31/09)200,000

Treasury bills, due 1/31/10 (purchased 1/1/09)300,000

Compute for the cash and cash equivalents that should be reported on the December 31, 2009 balance sheet.a. P2,784,000c. P3,784,000b. P3,084,000d. P3,584,000rro2. Ralf Corporation had the following account balances at December 31, 2009:

Cash on hand and in bankP2,500,000

Cash restricted for bonds payable due on June 30, 20101,000,000

Time deposit3,000,000

Savings deposit set aside for dividends payable on June 30, 2010500,000

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

3. On December 31, 2009, Alfonso Company had the following cash balances:

Cash in bankP15,000,000

Petty cash fund 50,000

Time deposit5,000,000

Saving deposit2,000,000

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. P21,850,000c. P21,800,000b. P16,850,000d. 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 effective interest that Tinoc pays on its P2,000,000 loan isa. 10.0%c. 12.0%b. 11.6%d. 12.8%

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:

DebitCredit

Petty cash fundP 2,000

Accounts receivable trade450,000P290,000

Subscription receivable60,00050,000

Delivery equipment50,000

Accounts payable trade280,000430,000

Bank loan35,00080,000

Accrued expenses1,500

Subscribed share capital60,000

Unissued share capital130,000

Authorized share capital200,000

Sales450,000

Purchases430,000

Expenses (including depreciation of P5,000 and accrued expenses of P1,500)

90,000

Cash in bank balance at December 31, 2009 wasa. P41,500c. P34,500b. P33,000d. P39,500

6. An office supplies enterprise, operating on a calendar-year basis, has the following data in its accounting records:

01/01 12/31

CashP 47,000

Inventory101,000 P 93,000

Accounts receivable82,000116,000

Accounts payable68,000 63,000

Sales1,150,000

Cost of goods sold 900,000

Operating expenses 200,000

What is the expected cash balance for December 31?a. P50,000c. P 76,000b. P66,000d. P134,000CIA 1189 IV-147. The petty cash fund of Guiguinto Company on December 31, 2009 is composed of the following:

Coins and currenciesP14,000

Petty cash vouchers:

Gasoline payments3,000

Supplies1,000

Cash advances to employees2,000

Employees check returned by bank marked NSF5,000

Check drawn by the company payable to the order of the petty cash custodian, representing her salary

20,000

A sheet of paper with names of employees together with contribution for a birthday gift of a co-employee in the amount of

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. P34,000c. P39,000b. P14,000d. P42,000

1. 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 collectionsP 60,000

Cash in bank-PCIB checking account500,000

Cash in bank-PNB (overdraft)(50,000)

Undeposited NSF check received from a customer, dated December 1, 200915,000

Undeposited check from a customer, dated January 15, 201025,000

Cash in bank-PCIB (fund for payroll)150,000

Cash in bank-PCIB (savings deposit)100,000

Cash in bank-PCIB (money market instrument, 90 days)2,000,000

Cash in foreign bank (restricted)100,000

IOUs from officers30,000

Sinking fund cash450,000

Listed stock held as temporary investment 120,000

P3,500,000

Cash and cash equivalents on Jens December 31, 2009 balance sheet should bea. P2,760,000c. P2,885,000b. P2,810,000d. P2,935,000rpcpa/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

P200,000

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

40,000

Check drawn on Diversity Corporation's account, payable to a vendor, dated and recorded December 31, but not mailed until January 15, 2010

100,000

The proper amount to be shown as cash on Diversity's balance sheet at December 31, 2009, isa. P760,000c. P860,000b. P800,000d. P975,000P2 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 fundP 1,800

Cash in Allied Bank per bank statement with a check for P3,000 still outstanding168,375

Notes receivable in the possession of a collecting agency12,500

Undeposited receipts, including postdated check for P5,250 and travelers check for P5,00089,000

Bond sinking fund cash63,750

IOUs signed by employees2,475

Paid vouchers not yet recorded 3,225

TotalP341,125

At what amount should Cash on hand and in bank be reported on Ingersolls balance sheet?a. P267,375c. P331,125b. P250,925d. P314,675RPCPA 1084-AMP4. The following items were included as cash in the books of Gotch Co.:

Checking account at Security Bank(P1,200)

Checking account at BPI5,335

Checking account at Citytrust used for payment of salaries5,500

Postage stamps107

Employees post-dated check2,300

I.O.U. from an employee200

A check marked DAIF1,250

Postal money order500

Petty cash fund (P324 in expense receipts)500

Certificate of time deposit with BPI5,000

A gold ring surrendered as security by a customer who lost his wallet (at market value)

1,500

The correct amount that should be reported as cash isa. P11,835c. P16,511b. P11,011d. P11,511RPCPA 0592

5. Aguinaldo Corporation had the following transactions in its first year of operations:

Sales (90% collected in the first year) P750,000

Disbursements for costs and expenses 600,000

Purchases of equipment for cash 200,000

Proceeds from issuance of ordinary shares 250,000

Payments on short-term borrowings 25,000

Proceeds from short-term borrowings 50,000

Depreciation on equipment 40,000

Disbursements for income taxes 45,000

Bad debt write-offs 30,000

What is the cash balance at December 31 of the first year?a. P 75,000c. P 85,000b. P105,000d. P140,000

6. Pops Co. established a P3,000 petty cash fund. You found the following items in the fund:

Cash and currencyP1,683.80

Expense vouchers829.80

Advance to salesman200.00

IOU from employee300.00

In the entry to replenish the fund, what amount should be debited to Cash Short and Over? a. P500.00c. P13.60b. P300.00d. P 0MC7-8 FAR Cabrera, 2005