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  University of San Jose  –   Recoletos Junior Philippine Institute of Accountants Quizbowlers’ Society  2014-2015 MOCK PRELIMINARY DEPARTMENTALS ACCOUNTING 3: FINANCIAL ACCOUNTING 1 I. CASH AND CASH EQUIVALENTS 1. Jayvee Corporation had the following transactions in its first year of operations: Sales (90% collected in the first year) 750,000 Disbursements for costs and expenses 600,000 Purchases of equipment on account 200,000 Proceeds from issuance of ordinary shares 250,000 Payment of short term borrowings 25,000 Proceeds from short term borrowings 50,000 Depreciation on equipment 40,000 Payment for income taxes 45,000 Bad debt write-offs 30,000 What is the cash balance at December 31 of the first year? 2. Faust Company has petty cash of P25. At the end of the month, the petty cash includes the following: Currency and coins 1.50 Receipted vouchers for: Postage 6.00 Travel 7.50 Donation to charity 10.00 Give the journal entry to simultaneously reimburse the fund and increase it to P100. 3. Your examination of the Anga Corporation revealed the following information: a. Reconciled balance in BDO checking account 19,607.50 b. Reconciled balance in BPI checking account (402.00) c. Reconciled balance in Metrobank 287,500.00 d. Sinking fund cash 300,000.00 e. Bond sinking fund (not purely cash, due 6 months after balance sheet date) 200,000.00 f. Bond sinking fund cash (due 9 months after balance sheet date) 100,000.00 g. Petty cash fund (includes 1000 in vouchers 5,000.00 h. Postage stamps 1,000.00 i. Employee’s IOU  1,250.00  j. Employee’s travel advances  16,400.00 k. Cash on hand (undeposited sales receipts) 31,094.00 l. Traveler’s checks  6,000.00 m. Customer’s postdat ed checks 2,904.00 What amount of cash should be shown in the balance sheet of Anga Company?   For numbers 4-5, refer to the following: Quizbowlers Company had the following account balances on December 31, 2014: Petty Cash Fund 50,000 Cash in bank  –  current account 5,000,000 Cash in bank  –  payroll account 1,000,000 Cash on hand 600,000 Cash in bank  –  restricted for plant additions expected to be disbursed in January 15, 2015 2,500,000 Commercial paper, 3 months 500,000 Redeemable preference share, acquired 2 months before maturity date 1,500,000 The petty cash fund includes unreplenished December 31, 2014 petty cash expense vouchers of 10,000 and employee IOUs of 20,000. The cash on hand includes a 200,000 check payable to Quizbowlers Company dated January 3, 2015. In exchange for a guaranteed line of credit, Quizbowlers agreed to maintain a minimum balance of 300,000 in the current bank account. 4. How much should be presented as petty cash fund? 5. How much is the total cash to be presented in the balance sheet as of December 31, 2014? Number 6-7 are based on the following: On January 2, you examined the following items in the petty cash drawer: Stamps 43.50 Currency and coins 115.66 IOUs from office staff 121.00 Envelope containing collections for a football pool with names of staff attached 35.00 Petty cash vouchers for: Typewriter repairs 13.00 Stamps 70.00 Telegram charges 28.50 Delivery fees 12.00 123.50 Employee check postdated 225.00 Employee NSF check 189.00 Check drawn by the company to cash 345.00 TOTAL 1,197.66 The ledger disclosed that the imprest balance of petty cash is 1,125.00 6. What is the amount of petty cash to be reported in the balance sheet? 7. How much is the cash shortage or overage, if any? Numbers 8-12 are based on the following: You were able to gather the following from the December 31, 2014 trial balance of JPIA Inc. in connection with your audit of the company: Petty cash fund 50,000 Cash on hand 1,500,000 Cash in bank  –  Metrobank 4,000,000 Cash in bank  –  BDO Account 98765 3,160,000 Cash in bank  –  BDO Account 12345 (160,000)   Cash in bank  –  Cocobank savings 4,500,000 Time deposts  –  BPI 2,000,000 The petty cash fund consisted of the following items on December 31, 2014: Currency and coins 10,000 Employee’s vales  8,000 Currency in an envelope marked collections for charity 6,000 Unreplenished petty cash vouchers 6,500 Check drawn by JPIA, payable to petty cashier 20,000 Unused postage stamps 1,500 52,000 The cash on hand includes the following: a. Customer check for 160,000 returned by the bank on December 26, 2014 due to insufficient fund but subsequently redeposited and cleared by the bank on January 3, 2015 b. Customer check for 80,000 dated January 2, 2015, received December 28, 2014 c. Customer check for 90,000 dated May 1, 2014 received on the same date and yet to be deposited since the same has been missing. d. Postal money order received from customers 100,000 Included among the checks drawn by JPIA against the Metrobank account and recorded in December 2014 include the following: a. Check written on December 29, 2014 dated January 2, 2015, delivered to the payee on December 30, 2014 for 160,000. b. Check written and dated December 29, 2014 and delivered to the payee on January 3, 2015, 200,000. The credit balance in the BDO Current account no. 12345 represents checks drawn in excess of the deposit balance. The savings account deposit in Coco bank has been set aside by the board of directors for acquisition of new computers which will be expected to be disbursed in the next 3 months from the balance sheet date. The time deposit in BIR was purchased on November 1, 2014 and shall mature one year thereafter. What are the correct balances of: 8 Petty cash 9. Petty cash shortage/overage 10. Cash on hand 11. Cash in bank  –  Metrobank 12. Cash and cash equivalents to be reported in the 2014 balance sheet? 13. The following items were included as cash in the books of Ayaw Paatik Company: Checking account at Security bank (1,200) Checking account at Chinabank 5,335 Checking account at Cititrust used for salary payments 5,500 Postage stamps 107 Employee postdated check 2,300 IOU from an employee 200 NSF/DAIF check 1,250 Postal money order 500   Petty cash fund (324 in expense receipts) 500 Certificate of deposit with BPI 5,000 Treasury bills, due 3/31/15, purchased 12/31/14 5,750 Treasury bills, due 1/31/15, purchased 1/31/14 6,000 How much should be reported as cash? 14 . Cha Company’s checkbook b alance on December 31, 2014 was 50,000,000. Cha held the following items in its safe on that date: Check payable to Cha Company, dated Jan 15, 2015 in payment of a sale in Dec 2014, included in the December 31, 2014 checkbook balance 4,000,000 Check payable to Cha company, deposited Dec 15 and included in the checkbook balance but returned by the on Dec 30, marked NSF The check was deposited after the balance sheet 7,000,000 Check drawn on Cha Company’s account, payable to vendor   dated December 28, 2014 but not yet recorded on Cha’s books as of Dec 31, 2014  5,000,000 Check drawn on Cha Company’s account, payable to a vendor   dated and recorded on Dec 27, 2014, but not mailed until January 2, 2015 1,000,000 What is the pro per amount to be shown as cash on Cha’s Statement of Financial Position on Dec 31, 2014? 15. On April 1, Yu Company established an imprest petty cash fund for 10,000 by writing a check drawn against its general checking account. On April 30, the fund contained the following: Currency and coins 3,000 Receipts for office supplies 4,000 Receipts for postage (of which 500 is unused) 2,000 Receipts for transportation 600 The company’s fiscal year ends on April 30. If the fund was not r  eplenished at year end, how much is the correct amount to be reported as petty cash fund? 16. Using the same information, prepare the entry to adjust the petty cash to its correct balance. II. BANK RECONCILIATION 17. The cash in bank account of Bridjet Company for July 2014 showed an ending balance of 129,298. Deposits in transit on July 31 were 18,200. Outstanding checks as of July 31 were 59,435 including a 5,000 check in which the bank certified on July 27. During the month of July, the bank charged back NSF checks in the amount of 3,435 of which 1,835 had been redeposited and cleared by July 20. On July 23, the bank charged Bridjet’s account for 2,200, items which should have been charged against Bridgette Co., the error was not detected by the bank as of July 30. During July, the proceeds from notes collected by the bank for Bridjet Company were 7,548 and bank charges for this service were 18. Compute the unadjusted balance per bank on July 31.
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