Republic of the Philippines

CATANDUANES STATE UNIVERSITY

College of Business and Accountancy
Virac, Catanduanes

Quiz No. 1 Accounting 3 Second Semester, SY 2020-2021

Solve the following problems with supporting computations presented in good form. Write your answers on a white sheet.

1. AMAZING Company revealed the following information on December 31, 2021:

Cash in checking account 315,000
Cash in money market account 675,000
Treasury bill, purchased November 1, 2021 maturing January 31, 2022 3,150,000
Time deposit purchased December 1, 2021 maturing March 31, 2022 3,600,000
What amount should be reported as cash and cash equivalents on December 31, 2021?

2. GREAT Company had the following account balances on December 31, 2021:
Petty cash fund 50,000
Cash in bank- current account 4,000,000
Cash in bank- payroll account 1,200,000
Cash in bank – sinking fund 2,000,000
Cash on hand 500,000
Cash in bank - restricted account for plant addition, expected to be disbursed in 2022 1,500,000
Treasury bills 1,000,000

The petty cash fund included unreplenished December 2021 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, 2022. In exchange
for a guaranteed line of credit, the entity has agreed to maintain a minimum balance of P200,000 in the unrestricted
current bank account.
The sinking fund is set aside to settle a bond payable that is due on June 30, 2022.
What total amount should be reported as cash and cash equivalents on December 31, 2021?

3. PANORAMA Company reported petty cash fund which comprised the following:
Coins and currency 3,300
Paid vouchers:
Transportation 600
Gasoline 400
Office supplies 500
Postage stamps 300
Due from employees 1,200 3,000
Manager’s check returned by bank marked “NSF” 1,000
Check drawn by the entity to the order of petty cash cashier 3,700
Determine the correct amount of petty cash fund for statement presentation purposes.

4. CREAM Company reported the checkbook balance on December 31, 2021 at P2,500,000 and held the following
items on same date:
Check payable to Cream, dated January 2, 2022 in payment of a sale made in
December 2021, not included in December 31 checkbook balance 1,000,000
Check payable to Cream, deposited December 15 and included in December
31 checkbook balance, but returned by bank on December 30 stamped “NSF.”
The check was redeposited on January 2, 2022 and cleared on January 9, 2022 250,000
Check drawn on Cream’s account, payable to a vendor, dated and recorded in
Cream’s books on December 31, 2021 but not mailed until January 10, 2022 300,000
Determine the amount that should be reported as cash on December 31, 2021.

5. In preparing the bank reconciliation for the month of January, REALM 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 January 10,000
What is the adjusted cash in bank?
6. RAINBOW Company received the bank statement for the month of May. However, the closing balance of the
account was unreadable.
Attempts to contact the bank after hours did not secure the desired information.
April 30 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 200,000
Deposit of April 30 placed in night depository 85,000
Check issued by Rainrow Company charged to Rainbow’s account 20,000
What is the cash balance per bank statement?

7. OZONE Company reported the following information in relation to cash on December 31, 2021:
 Checkbook balance, P5,000,000.
 Undeposited collections, P500,000.
 A customer check amounting to P300,000 dated January 2, 2022 was included in the December 31, 2021
checkbook balance.
 Another customer check for P600,000 deposited on December 22, 2021 was included in the checkbook balance but
returned by the bank for insufficiency of fund.

This check was redeposited on December 26, 2021 and cleared two days later.
 A P500,000 check payable to supplier dated and recorded on December 30, 2021 was mailed on January 16, 2022.
 A petty cash fund of P50,000 comprised the following on December 31, 2021:
Coins and currencies 5,000
Petty cash vouchers 40,000
Refundable deposit for returnable containers 5,000
50,000
 A check of P40,000 was drawn on December 31, 2021 payable to petty cash.

a. What is the adjusted cash in bank on December 31, 2021?

b. What total amount should be reported as cash on December 31, 2021?

8. GALAXY Company prepared the following bank reconciliation on June 30.

Balance per bank 9, 800,000
Deposit in transit 400,000
Outstanding checks (1,400,000)
Balance per book 8, 800,000

There were total deposits of P6,500,000 and charges for disbursement of P9,000,000 for July per bank statement. All
reconciliation items on June 30 cleared the bank on July 31. Deposit in transit totaled P1,200,000 and checks outstanding
amounted to P1,000,000 on July 31.

a. Compute for the adjusted cash in bank on July 31.

b. Compute for the cash balance per ledger on July 31.
c. Compute for the amount of cash receipts per book in July.
d. Compute for the amount of cash disbursement per book in July.

9. OCEANIA Company had the following bank reconciliation on October 31:

Balance per bank statement, October 31 4,650,000
Add: Deposits in transit 1,030,000
Total 5,680,000
Less: Outstanding checks 1,260,000
Balance per book, October 31 4,420,000

Data per bank statement for the month of November:

Deposits 5,840,000
Disbursements 4,970,000
All reconciliation items on October 31 cleared through the bank in November.
Outstanding checks on November 30 totaled P700,000 and there were no deposits in transit on November 30.

What is the cash balance per book on November 30?

Good Luck!