Cash Quiz

NAME:
DATE:
Candy Company had the following balance on December 31, 2016:

Cash in checking account 2,000,000
Cash in money market account 1,500,000
Treasury bill, purchased 12/1/2016 maturing 2/28/2017 4,000,000
Treasury bond, purchased 3/1/2016 maturing 2/28/2017 1,000,000
The policy is to treat as cash equivalents all highly liquid investments with maturity of three months or less when purchased.
What amount should be reported as cash and cash equivalents on December 31, 2016? 7,500,000
2. Dahlia Company had the following account balances on December 31, 2016:
Cash on hand and in bank 3,000,000

Cash legally restricted for addition to plant expected to be disbursed in 2017 2,000,000
Bank certificate of deposit due February 1, 2017 purchased September 1, 2017 1,000,000
What amount should be reported as cash and cash equivalents on December 31, 2016? 3,000,000
3. Abigail Company provided the following information at year-end:
Cash on hand 500,000

Cash in bank 4,000,000
Petty cash fund 50,000
Commercial paper with maturity of 2 months 1,000,000
Treasury bill with maturity of 6 months 2,000,000
Postdated customer checks 200,000
What amount should be reported as “cash and cash equivalents”? 5,550,000
4. Affable Company provided the following information at year-end comprising the cash account:
Cash in bank-demand deposit account 5,000,000

Postage stamps unused 5,000
Certificate of time deposit with maturity of 3 months 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? 6,550,000
5. Paula Company provided the following data on December 31, 2016?
Checkbook balance
Bank statement balance
Check drawn on Paula’s account, payable to supplier,
dated and recorded on December 31, 2016 but not
mailed until January 31, 2017
Cash in sinking fund
Treasury bills, purchased November 1, 2016 and
maturing in January 31, 2017
Time deposit, purchased October 1, 2016 and
maturing January 31, 2017
What total amount should be reported as cash and cash equivalents on December 31, 2016? 8,500,000
6. Joana Company had the following account balances on December 31, 2016:

Cash in bank-current account 4,500,000
Cash in bank-payroll account 1,000,000
Time deposit 2,000,000
Cash in bank-restricted account for plant addition,
expected to be distributed in 2017 500,000
Cash in sinking fund set aside for bond payable due
June 30, 2017 1,500,000
The Petty cash fund included unreplenished December 2016 petty cash expense vouchers of P5, 000 and employee IOU of
P5, 000. The cash on hand included a P100, 000, check payable to the entity dated January 31, 2017.
What total amount should be reported as cash and cash equivalents on December 31, 2016? 8,940,000
7. At year-end, Rabid Company reported a cash balance of P5, 250,000 which included the following:

Undeposited receipts, includes a postdated customer
checked of P200, 000 1,300,000
Cash in bank 2,500,000
Cash in sinking fund 1,000,000
Vouchers paid out of collections, not yet recorded 250,000
IOUs signed by employees 150,000
Total 5,250,000
What total amount should be reported as “cash” in the statement of financial position at year-end? 3,650,000
8. On December 31, 2016 Kibitzer Company had the following balances in the bank accounts it maintains at First Bank:
Checking account# 101 1,750,000

Checking account# 201 100,000
Time deposit account-30 days 250,000
90-day Treasury bill, due February 28, 2017 500,000
180 day Treasury bill, due March 15, 2017 800,000
On December 31, 2016, what total amount should be reported as cash and cash equivalents? 2,400,000
9. Aruba Company had a checkbook balance on December 31, 2016 of P8,000,000 and held the following items in the safe:
Check payable to Aruba, dated January 5, 2017,

Included in December 31 checkbook balance 2,000,000
Check payable to Aruba, 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, 2017,
And cleared January 3, 2017 500,000
Check drawn on Aruba’s account and payable to a vendor,
Dated and recorded December 31 but not mailed
Until January 15, 2017 1,500,000
Cash on hand-deposited collections 400,000
Changed fund 40,000
Time deposited for plant expansion 1,000,000
Treasury bill 2,500,000
Money market placement 3,000,000
Postage stamps unused 10,000
What total amount should be reported as cash on December 31, 2016?
What total amount should be reported as cash equivalents on December 31, 2016?
10. Natal Company provided the following information:

Materials 1,400,000
Advance for materials ordered 200,000
Goods in Process 650,000
Unexpired insurance on inventories 60,000
Advertising catalogs and shipping cartons 150,000
Finished goods in factory 2,000,000
Finished goods in company-owned retail store, Including 50% profit on cost 750,000
Finished goods in hands of consignees Including 40% profit on sale 400,000
Finished goods in transit to customer, shipped FOB destination at cost 250,000
Finished goods out on approval, at cost 100,000
Unsalable finished goods , at cost 50,000
Office supplies 40,000
Materials in transit shipped FOB shipping point Excluding freight of P30,000 330,000
Goods held on consignment, at sales price, Cost P150,000 200,000
REQUIRED: Compute the correct amount of inventory.
11. Luminous Company provided the following information at current year-end:

Finished goods in storeroom, at including overhead of P400,000 2,000,000
Finished goods in transit, including freight charge of P20,000
FOB shipping point 250,000
Finished goods held by salesmen, at selling price cost,
P100,000 140,000
Goods in process, at cost materials and direct labor 720,000
Materials 1,000,000
Materials in transit, FOB destination 50,000
Defective materials returned to supplies for replacement 100,000
Shipping supplies 20,000
Gasoline and oil for testing finished goods 110,000
Machine lubricants 60,000
REQUIRED: Compute cost inventory at current year-end.
12. On the December 31, 2007 balance sheet of Yount Co., the current receivables consisted of the
following:
Trade accounts receivable Ph 75,000
Allowance for uncollectible accounts (2,000)
Claim against shipper for goods lost in transit (November 2007) 3,000
Selling price of unsold goods sent by Yount on consignment
at 130% of cost (not included in Yount 's ending inventory) 26,000
Security deposit on lease of warehouse used for storing
some inventories 30,000
Total Ph132,000
At December 31, 2007, the correct total of Yount 's current net receivables was
13. May Co. prepared an aging of its accounts receivable at December 31, 2007 and determined that the
net realizable value of the receivables was Ph300,000. Additional information is available as follows:
Allowance for uncollectible accounts at 1/1/07—credit balance Ph 34,000
Accounts written off as uncollectible during 2007 23,000
Accounts receivable at 12/31/07 325,000
Uncollectible accounts recovered during 2007 5,000
For the year ended December 31, 2007, May's uncollectible accounts expense would be
14. For the year ended December 31, 2007, Colt Co. estimated its allowance for uncollectible accounts
using the year-end aging of accounts receivable. The following data are available:
Allowance for uncollectible accounts, 1/1/07 Ph56,000
Provision for uncollectible accounts during 2007
(2% on credit sales of Ph2,000,000) 40,000
Uncollectible accounts written off, 11/30/07 46,000
Estimated uncollectible accounts per aging, 12/31/07 69,000
After year-end adjustment, the uncollectible accounts expense for 2007 should be
15. King Co.'s allowance for uncollectible accounts was Ph95,000 at the end of 2007 and Ph90,000 at the
end of 2006. For the year ended December 31, 2007, King reported bad debt expense of Ph13,000 in its
income statement. What amount did King debit to the appropriate account in 2007 to write off actual bad
debts?
16. The following accounts were abstracted from Todd Co.'s unadjusted trial balance at December 31, 2007:
Debit Credit
Accounts receivable Ph750,000
Allowance for uncollectible accounts 8,000
Net credit sales Ph3,000,000
Todd estimates that 2% of the gross accounts receivable will become uncollectible. After adjustment at
December 31, 2007, the allowance for uncollectible accounts should have a credit balance of

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NAME:

Candy Company had the following balance on December 31, 2016:

Cash on hand and in bank 3,000,000

3. Abigail Company provided the following information at year-end:

Cash on hand 500,000

What amount should be reported as “cash and cash equivalents”? 5,550,000

Cash in bank-demand deposit account 5,000,000

What total amount should be reported as “cash” at year-end? 6,550,000

5. Paula Company provided the following data on December 31, 2016?

Petty cash fund 50,000

Petty cash fund 50,000

Checking account# 101 1,750,000

Check payable to Aruba, dated January 5, 2017,

10. Natal Company provided the following information:

11. Luminous Company provided the following information at current year-end:

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