Assessment Task 1-1

1. Tranvia Company revealed the following information on December 31, 2020:

Cash in Checking account 350,000

Cash in money market account 750,000

Treasury bill, purchased November 1, 2020 3,500,000

maturing January 31, 2021

Time deposit purchased December 1, 2020 4,000,000

maturing March 31, 2021

What amount should be reported as cash and cash equivalent on December 31, 2020:

Cash in Checking account 350,000

Cash in money market account 750,000

Treasury bill, purchased November 1, 2020 3,500,000

maturing January 31, 2021

Time deposit purchased December 1, 2020 4,000,000

maturing March 31, 2021

8,600,000

2. Affable Company provided the following information at year-end comprising the cash account:

Cash in bank- demand deposit 5,000,000

Cash on hand 400,000
Postage stamps unused 5,000
Certificate of time deposit 1,500,000
Money order 50,000
Manager Check 100,000
Traveler Check 1,000,000
Postdated customer Check 500,000
What total amount should be reported as cash at year end

Cash in bank- demand deposit 5,000,000

Cash on hand 400,000
Money order 50,000
Manager Check 100,000
Traveler Check 1,000,000
6,550,000
3. Thor Company provided the following data on December 31, 2020

Checkbook balance 4,000,000

Bank statement balance 5,000,000

Check drawn on Thor’s account payable 500,000

to supplier, dated and recorded on December
31, 2020 but not mailed until January 31, 2021

Cash in sinking fund 2,000,000

On December 31, 2020 what amount should be reports as cash under current assets?

Checkbook balance 4,000,000

Check drawn on Thor’s account payable 500,000

to supplier, dated and recorded on December
31, 2020 but not mailed until January 31, 2021

4,500,000

4. On December 31, 2020 Lamentable Company had the following cash

Cash in bank- current account 6,000,000

Petty cash fund- all funds were reimbursed 50,000

at year end

Time deposit- three months, due January 15, 2021 2,500,000

Saving deposit 1,000,000

Cash in bank included P400,000 of compensating balance against short term borrowing arrangement.

The compensating balance is legally restricted as to withdrawal

What total amount should be reported as cash and cash equivalent?

Cash in bank- current account 6,000,000

Petty cash fund- all funds were reimbursed 50,000

at year end

Time deposit- three months, due January 15, 2021 2,500,000

Saving deposit 1,000,000

Cash in bank (400,000)

9,150,000
5. Baloney Company had the following account balance on December 31, 2020:

Cash in bank 2,250,000

Cash on hand 125,000

Cash restricted for additional to plant in 2021 1,600,000

Cash in bank included P600,000 of compensating balance against short- term borrowing arrangement.

The compensating balance in not legally restricted as to withdrawal.

What total amount should be reported as cash on December 31, 2020?

Cash in bank 2,250,000

Cash on hand 125,000

2,375,000

6. In preparing the bank reconciliation for the month of August, Apex Company provided the
following information:

Balance per bank statement 1,805,000

Deposit in transit 325,000

Return of customer check for insufficient fund 60,000

Outstanding checks 275,000

Bank service charge for August 10,000

What is the adjusted cash in bank?

Balance per bank statement 1,805,000

Deposit in transit 325,000

2,130,000

Less: Return of customer check for insufficient fund 60,000

Outstanding checks 275,000

Bank service charge for August 10,000 (345,000)

1,785,000
7. In preparing the bank reconciliation for the month of December, Case Company provided the
following data:

Balance per bank statement 3,800,000

Deposit in transit 520,000
Amount erroneously credited by bank to Case’s account 40,000
Bank service charge for December 5,000
NSF Check 50,000
Outstanding Check 675,000
What is the unadjusted cash in bank balance per book?

Balance per bank statement 3,800,000

Deposit in transit 520,000

Outstanding check (675,000)

Bank error (40,000)

Adjusted bank balance 3,605,000

Unadjusted book balance (SQUEEZE) 3,660,000

Bank service charge (5,000)

NSF Check (50,000)

Adjusted Cash in bank balance 3,605,000

8. Sapphire Company provided the following information for the month of December:

Balance per bank statement December 31 2,800,000

Bank service charge for December 12,000

Interest paid by bank to Sapphire Company for Dec 10,000

Deposits made but not yet recorded by the bank 350,000

Check written but not yet recorded by the bank 650,000

The entity discovered that it had drawn and erroneously recorded a check for P46,000 that should have
been recorded for P64,000

What is the cash balance per ledger on December 31?

Balance per book 2,800,000

Deposit in transit 350,000
Outstanding checks (650,000)
Adjusted bank balance 2,500,000
Balance per ledger (SQUEERE) 2,520,000
Interest income 10,000
Service charge (12,000)
Book error (64,000-46,000) (18,000)
Adjusted bank balance 2,500,000
9. Core Company provided the following data for the purpose of reconciling the cash balance per book
with the cash balance per bank statement on December 31:

Balance per book 850,000

Balance per bank statement 2,000,000

Outstanding checks, including certified 500,000

check of P100,000

Deposit in transit 200,000

December NSF checks, of which P50,000 had 150,000

been redeposited and cleared on December 27

Erroneous credit to Core’s account, representing 300,000

proceeds of loan granted to another company

Proceeds of note collected by bank for Core, 750,000

net of service charge of P20,000

What amount should be reported as cash in bank at year-end

Bank per bank 2,000,000

Deposit in transit 200,000
Total 2,200,000
Less: Outstanding check (500,000-1,000)- (400.000)
Less: Erroneous Bank credit (300,000)
Adjusted Bank Balance 1,500,000 1,500,000
Balance per book 850,000
Net Proceed 750,000
Total 1,600,000
Less: NSF CHECKS (100,000)
Adjusted Book Balance 1,500,000

10. Laconic Company received the bank statement for the month of April which included the following
information:

Bank service charge for April 15,000

Check deposited by Laconic during April was not collectible 40,000

and has been marked “NSF” by the bank and returned

Deposits made but not yet recorded by bank 130,000

Checks written and mailed but not yet recorded by bank 100,000
 The entity found a customer check for P35,000 payable to the entity that had not yet been
deposited and had not been recorded.

The general ledger showed a bank account balance of P920,000

What amount should be reported as adjusted cash in bank on April 30?

Bank account balance 920,000

Undeposit checks 35,000
Service charge (15,000)
NSF Check (40,000)
Total 900,000

Items 11 to 13 are based on the following information:

Pearl Company maintains a checking account at the City Bank. The bank provides a bank statement
along with canceled checks on the last day of each month. The July bank statement included the
following information:

Balance, July 1 550,000

Deposits 1,800,000

Cheeks processed 1,400,000

Service charge 30,000

NSF check 120,000

Monthly loan payment deducted by bank from account 100,000

Deposits outstanding totaled P100,000 and all checks written by the depositor were processed by the
bank except for check of P150,000.

A P200,000 July deposit from a credit customer was recorded as P20,000 debit cash and credit accounts
receivable.

A check correctly recorded by the entity as P 30,000 disbursement was incorrectly processed by the
bank as P300,000 disbursement

11. What is the balance per bank on July 31?

12. What amount should be reported as cash in bank on July 31?

13. What is the cash in bank balance per ledger on July 31?
 11. What is the balance per bank on July 31?

Balance per bank- July 1 550,000

Deposits 1,800,000

Checks processed (1,400,000)

Service Charge (30,000)

NSF Check (120,000)

Monthly payment (100,000)

Balance per bank- July 31 700,000

12. What amount should be reported as cash in bank on July 31?

Balance per bank- July 31 700,000

Deposit in transit 100,000

Outstanding check (150,000)

Bank error- overstatement of disbursement 270,000

Adjusted bank balance 920,000

13. What is the cash in bank balance per ledger on July 31?

Balance per ledger- July 31 990,000

Service Charge (30,000)

NSF Check (120,000)

Monthly loan payment (100,000)

Book error- understanding of collection 180,000

Adjusted book balance 920,000

Items 14 to 16 are based on the following information:

Humanizer Company provided the following information:

Balance per bank statement — May 31 2,600,000

Deposits outstanding 300,000

Checks outstanding ( 100,000)

Correct bank balance — May 31 2,800,000

Balance per book — May 31 2,810,000

Bank service charge ( 10,000)

Correct book balance — May 31 2,800,000

June data are as follows: Bank Book

Checks recorded 2,200,000 2,500,000

Deposits recorded 1,600,000 1,800,000

Service charges recorded 50,000

Note collected by bank, P500,000

plus interest 550,000

NSF check returned with June 30 statement 100,000

Balances 2,400,000 2,100,000

14. What is the amount of outstanding checks on June 30?

15. What is the amount of deposits in transit on June 30?

16. What is the adjusted cash in bank on June 30?

14. What is the amount of outstanding checks on June 30?

Check outstanding 100,000
Check record in June 2,500,000
Total 2,600,000
Check record by bank in June (2,200,000)
Check outstanding June 30 400,000
15. What is the amount of deposits in transit on June 30?
Deposit IT per book 1,800,000
Deposit IT per bank 1,600,000
Deposit in transit may 31 (300,000)
Deposit mailed Receive (1,300,000)
Deposit in transit 1,500,000
16. What is the adjusted cash in bank on June 30?
Bank Balance 2,400,000
Add: Deposit in Transit June 30 500,000
Total 2,900,000
Less: Outstanding Balance June 30 400,000
Adjusted Bank Balance June 30 3,500,000
Items 17 to 20 are based on the following information: Cool Company prepared the following bank
reconciliation for the month of November:

Balance per bank statement, November 30 3,600,000

Add: Deposit in transit 800,000
4,400,000

Less: Outstanding checks 1,200,000

Bank credit recorded in error 200,000 1,400,000

Balance per book, November 30 3,000,000

Data per bank statement for the month of December:

December deposits, including note receivable 5,500,000

collected of P 1,000,000 for Cool Company

December disbursements, including NSF check 4,400,000

P350,000 and service charge P50,000

All items that were outstanding on November 30 cleared through the bank in December, including the
bank credit.

In addition, checks of P500,000 were outstanding and deposits of P700,000 were in transit on December
31.

17. What is the adjusted cash in bank on December 31?

18. What is the balance of cash per ledger on December 31?

19. What is the amount of cash receipts per book in December?

20. What is the amount of cash disbursements per book in December?

17. What is the adjusted cash in bank on December 31?

Balance per bank November 30 3,600,000

December deposit 5,550,000

Total 9,100,000

December disbursement (4,400,000)

Balance per bank Dec 31 4,700,000

Deposit in transit Dec 700,000

Outstanding check Dec (500,000)

Adjusted bank balance December 4,900,000

18. What is the balance of cash per ledger on December 31?

Balance per bank Statement Nov. 30 3,600,000

Add: Deposits 5,500,000

Total 9,100,000

Less: Disbursement 4,400,000

Cash per ledger 4,700,000

19. What is the amount of cash receipts per book in December?

Bank Receipts in December 5,500,000

Note Collected during December (1,000,000)

Deposit in transit

November (800,000)

December 700,000

Cash receipts per book 4,440,000

20. What is the amount of cash disbursements per book in December?

Bank Disbursement in December 4,400,000

December debit memos 350,000

Service change 50,000 (400,000)

November bank reconciling items:

Outstanding check 1,200,000

Erroneous bank credit 200,000 (1,400,000)

Outstanding check dec 500,000

Cash disbursement per book dec 3,100,000