Financial Accounting Part 1: Cash & Cash Equivalent
Financial Accounting Part 1: Cash & Cash Equivalent
Financial Accounting Part 1: Cash & Cash Equivalent
____ 7. The debit balance in Cash Short and Over at the end of an accounting period is
reported as
a. an expense on the income statement
b. income on the income statement
c. an asset on the balance sheet
d. a liability on the balance sheet
____ 9. Journal entries based on the bank reconciliation are required in the company's
accounts for
a. outstanding checks
b. deposits in transit
c. bank errors
d. book errors
____ 12. Which of the following should not be considered cash by an accountant?
a. money orders
b. bank checking accounts
c. postage stamps
d. travelers' checks
____ 14. The amount of deposits in transit is included on the bank reconciliation as a(n)
a. deduction from the balance per the company's books
b. deduction from the balance per bank statement
c. addition to the balance per bank statement
d. addition to the balance per company books
____ 15. What entry is required in the company's accounts to record outstanding checks?
a. debit Accounts Receivable; credit Cash
b. debit Cash; credit Accounts Receivable
c. debit Cash; credit Accounts Payable
d. none
PROBLEM
The following bank reconciliation is presented for Peter Company the Month of November, 2015:
Date per bank statement for the month of December, 2015 follow:
All items that were outstanding as of November 30 cleared through the bank in December, including
the bank credit. In addition, P8,000 in checks were outstanding and deposits of P11,000 were in
transits as of December 31, 2015.
The statement of financial position of Troy Company shows cash of P165,410. The following items
were found to comprise this total amount:
Jhanine Company is preparing its March 31 bank reconciliation. The following data are available:
The following bank reconciliation is presented for the Mischa Co. for the month of November 2015:
All items that were outstanding as of November 30 cleared to the through the bank in December,
including the bank charge. In addition, P25,000 in checks were outstanding as of December 31,
2015.
24. What is the amount of cash receipts per books in December 31, 2015?
25. What is the cash balance per book at December 31, 2015?
26. What is the amount of cash disbursement per books in December 2015?
The information that follows is available from the general ledger and the bank statement
of Losser Company.
i. Included in the July bank receipts was a memo adjustment for an erroneous bank charge
made against Losser Company’s account during June P20,000.
j. A deposit of Losser for P25,000 on July was erroneously recorded by the bank to Losserious
Company account.
k. Included in the July bank disbursement was a check issued by Lossious Company for
P10,000, erroneously recorded by the bank in Losser Company’s account.
i. Included in the book receipt was a deposit for P45,000 which was recorded as P54,000. No
correction was made yet by Losser Company.
m. Included in the book disbursement was a check issued by Losser Company for P42,000
was recorded as P24,000.
Jasmin Company’s checkbook balance at December 31, 2015 was P100,000. In addition, Jasmin
held the following items in its safe that date.
Check payable to Jasmin, dated December 31, 2015 in payment of a sale made in December 2015
not included in December 31, checkbook balance P20,000.
Check payable to Jasmin, deposited December 15 but returned by bank on December 30 Marked
“NSF” the deposit and the return were both reflected in the checkbook P5,000.
Check drawn on Jasmin Company’s account, payable to a vendor, dated December 30, but no yet
mailed to payee as of December 31, 2015. The check is not yet recorded P3,000.
31. The amount to be shown as Cash on Jasmin’s statement of financial position at
December 31, 2015?
In your cash count of the petty cash fund of J & L Company as of January 4, 2016, you found the
following items in the petty cash box.
33. The amount of petty fund that will be included in the cash balance at December 31,
2015?