Assignment Detail

Problem 1 – On December 31, 2020, Tactless Company had the following cash balances:

Cash in bank 5,000,000

Petty cash fund 50,000

Time deposit, 3 months, due March 1, 2021 1,000,000

Saving deposit 500,000

A check of P200,000 dated January 15, 2021 in payment of accounts payable was recorded and mailed on December 28, 2020.

IN the December 31, 2020 statement of financial position what total amount should be reported as “cash”?

Problem 2 – Salient Company had a checkbook balance on December 31, 2020 of P8,000,000 and held the following items in its safe:

Check payable to Salient, dated January 5, 2021, Included in December 31 checkbook balance 2,000,000

Check payable to Salient, deposited December 20, and included in December 31 checkbook balance, but returned by bank on December 30, stamped “NSF”. The check was redeposited January 2, 2021, and cleared January 3, 2021. 500,000

Check drawn on Salient’s amount and payable to a vendor, dated and recorded December 31 but not mailed until January 15, 2021 1,500,000

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

Problem 3 – Endemic 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, 2020:

Balance per bank statement 2,000,000

Balance per book 850,000

Outstanding checks (including certified check of P100,000) 500,000

Deposit in transit 200,000

December NSF checks (of which P50,000 had been redeposited and cleared by December 27) 150,000

Erroneous credit to Endemic account, representing proceeds of loan granted to another entity 300,000

Proceeds of note collected by bank for Endemic, net of service charge of P20,000 750,000

What is the cash in bank to be reported in the December 31, 2020 statement of financial position?

Problem 4 – Adversary Company keeps all cash in a checking account. An examination of the accounting records and bank statement for the month ended June 30, 2020 revealed the following information:

The cash balance per book on June 30 is P8,500,000.

A deposit of P1,000,000 that was placed in the bank’s night depository on June 30 does not appear on the bank statement.

The bank statement shows on June 30, the bank collected note for Adversary Company and credited the proceeds of P950,000 to the entity’s account.

Checks outstanding on June 30 amount to P300,000.

Adversary Company discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity’s records as P20,000.

Included with the June bank statement was NSF check of P250,000 that Adversary Company had received from a customer on June 26.

The bank statement shows a P20,000 service charge for June.

What is the cash in bank to be reported in the statement of financial position on June 30, 2020?

Problem 5 – On March 31, 2013, Decent Company received its bank statement. A bank reconciliation is prepared from the following available information:

February 28 book balance 1,460,000

Note collected by bank 100,000

Interest earned on note 10,000

NSF check of customer 130,000

Bank service charge on NSF check 2,000

Other bank service charges 3,000

Outstanding checks 202,000

Deposit of February 28 placed in night depository 85,000

Check issued by Deceit Company charged to Decent account 20,000

What is the cash balance per bank statement?

Problem 6 – Lovable Company had the following bank reconciliation on June 30:

Balance per bank statement, June 30 3,000,000

Deposit in transit 400,000

Total 3,400,000

Outstanding checks (900,000)

Balance per book, June 30 2,500,000

The bank statement for the month of July showed the following:

Deposits (including P200,000 note collected for Lovable) 9,000,000

Disbursements (including P140,000 NSF check and 10,000 service charge) 7,000,000

All reconciling items on June 30 cleared through the bank in July. The outstanding checks totalled P600,000 and the deposit in transit amounted to P1,000,000 on July 31.

1. What is the cash balance per book on July 31?

2. What is the amount of cash receipts per book in July?

3. What is the amount of cash disbursements per book in July?