ARMADA, IAN CLEO C.

2 BSACCTY B
INTERMEDIATE ACCOUNTING 1

CHAPTER 1
CASH AND CASH EQUIVALENTS
Problem 1-1
Requirement 1
1.    Adjusting Entries
2020
Dec. 31 Accounts Receivable 200,000
Cash in Bank 200,000
Record cash in bank with customers check outstanding

31 Cash in Bank 250,000

Accounts Payable 250,000
To record payments of accounts payable

31 Cash in Bank 100,000

Accounts Payable 100,000
To record payments of accounts payable

31 Accounts Receivable 450,000

Cash in Bank 450,000
To record deduction of a postdated check.

Requirement 2
2. Computation for total amount of Cash and Cash Equivalents
Cash in Bank 3,000,000
Stale Check of costumer’s check (200,000)
Unreleased check of payment in accounts payable 250,000
Postdated check of payment in accounts payable 100,000
Postdated check of cash receipts 450,000
Total Cash in Bank 3,600,000
Time deposit - 30 days 1,000,000
Petty Cash Fund 20,000
Total Cash and Cash Equivalent 4,620,000

Requirement 3
3. Presentation of items excluded from Cash & Cash equivalents with explanation.

Excluded items
1. Money market placement due on June 30, 2021
It is excluded because it is considered as a short term investment.

2. Saving desposit in closed bank

It is excluded because it is other non-current asset.

3. Sinking fund for bonds payable due June 30, 2022

It is included because it is considered as a long-term investment.
Problem 1-3

Requirement 1
Adjusting entries
Cash on Hand
2020
Dec. 31 Accounts Receivable 100,000
Cash on Hand 100,000
To record returned costumer's check

31 Accounts Receivable 150,000

Cash on Hand 150,000
To record postdated check of costumer

31 No entry

Petty Cash
Dec 31 Advances to employees 10,000
Cash short or over 5,000
Petty Cash Fund 15,000
To record adjustments

Cash in Bank
Dec 31 Cash in Bank 200,000
Accounts Payable 200,000
To record addition of unreleased check in cash in bank

31 Cash in Bank 300,000

Accounts Payable 300,000
To record addition of postdated check in cash in bank

Requirement 2
Total Cash
Cash on hand 1,000,000
NSF Costumer Check (100,000)
Postdated Check (150,000)
Adjusted on Cash on Hand 750,000

Currency and coins 2,000

Check drawn payable to petty cashier 33,000
Adjusted Petty Cash 35,000

Cash in Bank 4,000,000

Unreleased Check 200,000
Postdated check 300,000
Adjusted cash in bank 4,500,000

Cash on hand 750,000

Petty Cash Fund 35,000
Cash in Bank 4,500,000
Savings Deposit 2,000,000
7,285,000
Problem 1-5

Requirement 1
Imprest Fund System

1 Petty Cash Fund 10,000

Cash in Bank 10,000
Establish a petty cash fund.

2 No entry

3 Petty Cash Fund 5,000

Postage 1,500
Supplies 5,500
Transportation 1,200
Miscelaneous Expense 800
Cash in Bank 14,000
Replenishment and increased the fund.

Fluctuating Fund System

1 Petty Cash Fund 10,000

Cash in Bank 10,000
Establish a petty cash fund.

2 Postage 1,500
Supplies 5,500
Transportation 1,200
Miscelaneous Expense 800
Petty Cash Fund 9,000
Payment of expenes

3 Petty Cash Fund 14,000

Cash in Bank 14,000

Problem 1-10
Answer: C. 4,600,000

Problem 1-12
Answer: A. 4,500,000

Problem 1-14
Answer: B. 9,150,000

Problem 1-18
Answers: 1. B. 7,440,000
2. C. 5,500,000

Problem 1-22
Answers: 1. B. 4,200,000
2. A. 4,645,000

1. D
2. B
3. A
4. B
5. D
6. C
7. B
8. D
9. A
10. C

Problem 1-25
 Answers: 1. D
2. D
3. C
4. C
5. B

ARMADA, IAN CLEO C. 2 BSACCTY B

INTERMEDIATE ACCOUNTING 1
CHAPTER 2
BANK RECONCILIATION

Chapter 2 -2

Requirement 1

SENSIBLE COMPANY
BANK RECONCILIATION
DECEMBER 31, 2020

Balance per book 110,000

Add: Credit Memo;
Note collected 45,000
Total 155,000
Less: Book error (27,000)
NSF check (10,000)
Service charge (5,000)
Adjusted book balance 113,000

Balance per bank 135,000

Add: Deposit in transit 60,000
Erroneous bank debit 8,000
Total 203,000
Less: Outstanding checks
No. 770 (20,000)
No. 775 (30,000)
No. 777 (40,000)
Adjusted bank balance 113,000

Requirement 2
2020
Dec. 31 Cash in Bank 45,000
Notes receivable 45,000
To record ollection of notes

31 Bank service charge 5,000

Cash in Bank 5,000
To record collection fee in bank

31 Accounts Receivable 10,000

Cash in Bank 10,000
To recordbcheck of costumer's payment

31 Accounts Payable 27,000

Cash in Bank 27,000
To record error

Chapter 2 - 4
Requirement 1

CHIVALRY COMPANY
BANK RECONCILIATION
MARCH 31, 2020

Balance per book 1,405,000

Add: Collection of note 2,500,000
Interest note 150,000
Transposition error 45,000
Total 4,100,000
Less: Bank service charge (5,000)
Light and water expense (245,000)
NSF Check (220,000)
Adjusted book balance 3,630,000

Balance per bank 5,630,000

Add: Deposit in transit 750,000
Total 6,380,000
Less: Erroneous bank credit (1,100,000)
Outstanding checks (1,650,000)
Adjusted bank balance 3,630,000

Requirement 2
2020
Mar 31 Cash in bank 2,500,000
Accounts Receivable 2,500,000
To record collection of notes

31 Cash in bank 150,000

Interest Income 150,000
To record collection of interest on notes

31 Cash in bank 45,000

Accounts payable 45,000
To record transposition error

31 Bank service charge 5,000

Cash in bank 5,000
To record collection of bank in service charge

31 Light and Water Expense 245,000

Cash in bank 245,000
To record payment of expenses

31 Accounts receivable 220,000

Cash in bank 220,000
NSF check

Chapter 2 - 6
Requirement 1

RADIANT COMPANY
BANK RECONCILIATION
JANUARY 31, 2020

Balance per bank 3,500,000

Add: Deposit in transit 550,000
NSF check 50,000
Debit memo 5,000
Unrecorded check 125,000
Total 4,230,000
Less: Outstanding check (650,000)
Overstated check (270,000)
Understated check (180,000)
Book balance 3,130,000

Requirement 2
2020
Jan. 31 Cash in Bank 180,000
Accounts Receivable 180,000
Understated record of costumer's check

31 Cash in Bank 270,000

Accounts Payable 270,000
Understated record of creditor's check

31 Accounts Receivable 50,000

Cash in Bank 50,000
NSF check

31 Bank service charge 5,000

Cash in Bank 5,000
Collected fees on bank service

31 Accounts Payable 125,000

Cash in Bank 125,000
Payment of accounts payable

PROBLEM 2-11
Answer: a. 1,500,000

PROBLEM 2-13
Answer: b. 1,530,000

PROBLEM 2-15
Answer: b. 2,520,000

PROBLEM 2-17
Answers: 1. a. 2,120,000
2. b. 3,070,000

PROBLEM 2-18
Answers: 1. b. 7,750,000
2. b. 7,070,000
3. a. 8,700,000

PROBLEM 2-18
Answers: 1 D
 2 A
3 B
4 B
5 C
6 A
7 B
8 D
9 C
10 C

ARMADA, IAN CLEO C. 2 BSACCTY B

INTERMEDIATE ACCOUNTING 1

CHAPTER 3
PROOF OF CASH
Chapter 3 -1
Requirement 1
SASSY COMPANY
BANK RECONCILIATION
JUNE 30, 2020

Balance per book 1,000,000

Add: Credit memo;
Note collected 300,000
Total 1,300,000
Less: NSF check (100,000)
Bank service charge (4,000)
Adjusted book balance 1,196,000

Balance per bank 1,650,000

Add: Deposit in transit 400,000
Total 2,050,000
Less: Outstanding checks (854,000)
Adjusted bank balance 1,196,000

Adjusting entries
2020
June 30 Cash in Bank 300,000
Notes Receivable 300,000
Notes collected

30 Accounts Receivable 100,000

Cash in Bank 100,000
NSF check of costumer

30 Bank service charge 4,000

Cash in Bank 4,000
Collected by bank for service

Book balance computation

Balance per book - June 30 1,196,000

Add: Books debit during July 3,700,000
Total 4,896,000
Less: Book credits during July (3,496,000)
Balance per book - July 31 1,400,000

Book balance computation

Balance per bank - June 30 1,196,000

Add: Bank credits during July 3,100,000
Total 4,296,000
Less: Bank debits during July (1,646,000)
Balance per bank - July 31 2,650,000

Deposit in transit computation

Deposit in transit - June 30 400,000

Add: Cash receipts deposited during July:
Book debits 4,000,000
Less: June CM for noted collected (300,000) 3,700,000
Total 4,100,000
Less: Deposits acknowledged by bank in July:
Bank credits 3,500,000
Less: July CM for note collected (500,000) (3,000,000)
Deposit in transit - July 31 1,100,000

Outstanding checks computation

Outstanding checks - June 30 854,000

Add: Checks with drawn by the depositor during July:
Book credits 3,600,000
Less June DMs:
NSF check (100,000)
Bank service charge (4,000) 3,496,000
Total 4,350,000
Less: Checks paid by the bank during July:
Bank debits 2,500,000
Less: July Bank service charge (1,000) (2,499,000)
Outstanding checks - July 31 1,851,000

SASSY COMPANY
BANK RECONCILIATION
JULY 31, 2020

Balance per book 1,400,000

Add: Credit memo;
Bank loan 500,000
Total 1,900,000
Less: Bank service charge (1,000)
Adjusted book balance 1,899,000

Balance per bank 2,650,000

Add: Deposit in transit 1,100,000
Total 3,750,000
Less: Outstanding checks (1,851,000)
Adjusted bank balance 1,899,000

Adjusting entries
2020
July 31 Cash in Bank 500,000
Bank loan payable 500,000
To record a loan in bank.

31 Bank service charge 1,000

Cash in Bank 1,000
To record payment for bank service

Chapter 3 -5
Requirement 1
 EFFICIENT COMPANY

PROOF OF CASH

APRIL 30, 2020

Mar-31 Receipts Disbursements Apr-30

200,000 800,000 720,000 280,000

Balance per book

Note Collected:
60,000 (60,000)
March
100,000 100,000
April

NSF Check:
(20,000) (20,000)
March
30,000 (30,000)
April

Service Charge:
(8,000) (8,000)
March
2,000 (2,000)
April

Deposits in Transit
(80,000) 80,000
March
(220,000) (220,000)
April

Outstanding checks:
178,000 178,000
March
    (372,000) 372,000
April
330,000 700,000 530,000 500,000
Balance per bank

Chapter 3-9
answers: 1. b
2.d
3.a

Chapter 3-11
answers: 1.d
2.b
3.a
4.a

Chapter 3-13
answers: 1.d
2. a
3.b
4. c