PROBLEMS Problem 1-1 (AA) On December 31, 2019, Albania Company provided the following data: Cash in bank 2,000,000, ‘Time doposit~30days 1.000.600 ‘Money market placement due on June 90, 2020 2.000,000 Saving deposit in closed bank 1,000 Sinking find farbond payable due June 30, 2021 1.500.000 Peuy-cash fund 20,000 ‘Tho cash in bank included customer check of P200,000 outstanding for 18 months Check of P250,000 in payment of accounts payable was dated and recorded on December 31, 2019 but mailed to creditors on January 15, 2020. Check of P100,000 dated January 21, 2020 in payment af Accounts payable was recorded and mailed December 31, 2018. *. ‘The reporting period is the calendar year. ‘The cash receipts journal was held open until January 15, 2020 during which time an amount of P460,000 was, collected and recorded on December 31, 2018, Required: 1, Prepare adjusting entries on December 31, 2019. 2 Compute the total amount of eash and cash equivalents that should be reported on Deoember 81, 2019 3, Bxplain the presentation of the items excluded from cash ‘and each equivalents 18 Problem 1-2 (IAA) Argentina Company reported the following accounts on December 81, 2019: Ceshon hand. 1600000 euy ena fond soto ‘Skeurty Bankeurrent account 20001 PNBeureent acount 1.500000 [EDO current somunt (overdraft) (200000) [BSP treasury bill~ 120 days areas [BP ie deposit 90 days ond sinking fund 2.800.000 The cash on hand included a customer postdatod chock ‘of P150,000 and postal money order of P50,000 sh The petty cash fund included unreplenished petty ca vouchers for P10,000 and an employee check for PS,000, ated January $1, 2020 + The BPI time deposit is sot aside for acquisition of land to be made in early January 2020, ‘The bond sinking fund 1s set aside for payment of bond payable due Decomber 81, 2020. Required: 1. Prepare adjusting entrios on December 31, 2019. 2 Compute the total amount of eash and cash equivalents. 4. Explain the presentation ofthe items excluded from cash ‘and cash equivalents.Problem 1-8 (IAA) ‘Armenia Company reported the following information on December 31, 2019: ace Cashonhand ety cating goon estan nt Serine epee 2000000 * Cash on hand included the folowing: ‘Customer check of P100,000 returned by bank December 26, 2019 due to insufficient fund but subsequently redeposited and cleared by bank January 5, 2020. ', Customer check for P160,000 dated January 15, 2000 received December 22, 2018. © Postal money orders received from customers, P200,000 * The petty cash fund consisted ofthe fllowing items: Curent sine ona Sanat Tote om Coren inenelpe marked colton for Chrvinae part 3000 Cceckdrownty Armeniapaabetopety cashier 53000 soa Check writtén and dated December 22, 2019 and delivered to payee on January 5, 2020, P200,000. * Check writton December 26, 2019 and dated January $1, £2020 delivered to payee on December 26, 2019, P200,000, Required: L. Prepare adjsting entries on December 31, 2019. 2 Compute the total eash on December 31, 2019. 20 Problem 1-4 (PHILCPA Adapted) Callous Company reported the following accounts on ‘December 31, 2018: Cashon and 200,000 Petty ea fund 20,000 Philppine Bank current acount 1,000,000 (City Benk current acxount No.1 4,000,000 (ity Bank eurrent account No.2 (overdraft) ro0.000) ‘Asin Bank saving account 250.000 ‘Asn Banke depot, 90 days 2,000,000, + Cash on hand included the following items: ‘Customer check for P35,000 returned by bank December 26, 2019 due to insufficient fund but subsequently ‘edeposited and cleared by the bank on January 10, 2020. Customer check for P15,000 dated January 10, 2020, received December 23, 2019. + ‘The petty cash fund consisted of the following items: Garrency and coins 5000 [OU fots eens 20 ‘Unreplenabed petty cash vouchore 12000 * Included among the checks drawn by Callous Company against the Philippine Bank current account and recorded in December 2019 were the fllowing Check written and dated December 29, 2019 and delivered to payee on January 31, 2020, P25,000. Check written December 6, 2019, dated January 30, 2020, delivered to payee on December 28, 2019, P45,000, Require 1. Compute the total oash and cash equivalents 2. Prepare adjusting entries on December 31, 2019. aProblem 1-5 (ACP) Zealous Company established a petty cash fund. 1. Established a petty cash fund of P10,000 on January 2. 2 Petty cash expenses - January 2-31 are: Sere 550 ‘retpereton ‘0 Mibrdaneos expense ‘0 8, ‘The fund is replenished on February 1 and increased by 5,000. Required: Prepare journal entries to record the transactions under the fluctuating fund system and imprest fund system, Problem 1-6 (ACP) Zenith Company provided the following chronological Transactions tn relation to petty cash: 1, The entity established a petty cash fund of P10,000. 2 Potty cash disbursements were: Postage 1.500 Sapie 000 3, Potty cash disbursements were: ‘Transportation 1.000 ‘Aoounts payable 3.500 4. sowed check for an amount to replenish the fund and bring the balance of the petty cash to P20,000. Required: Prepare journal entries to record the transactions under ‘luctuating fund system and imprest fund system. Problem 1-7 (IAA) Laborious Company closed the accounts on June 30. The ceatity provided the following transactions: Nay 2 The entity established an imprest fund of P10,000. 29 ‘The fund is replenished. The petty cash items include: (Currency end coin 2.000 Postage 1.000 Supls 3.000 ‘Transportation 2500 Misslaneovr expense 1.300 June90 The fund was not replenished. The fund is composed of the following: Currency and cain 6.000 Serine aaco ‘Tranapertaion 1000 July 15 Tho fand is roplenished and ineransed to P15.000 ° coin 000 one a Postage 600 ‘Transportation 1500 Miselaneous expense ‘a0 Required: Prepare journal entries to record the transactions under imprest fund system and fluctuating fund aystem.Problem 1-8 (IAA) ‘Tacit Company provided the following transactions: 2019 Nov. 2 The entity established an imprest petty cash fund of P10,000. 90 An examination ofthe cash fund disclosed: Currency and coin Memoranda showing expenditures or: Peta increase its amount to P20,000 Dec. 31 The fund was not replenished. Currency and enn ‘Memoranda showing expenditure for: Postage Sopp Depoat for 20casesofsoftrinks 2020 ‘Jan. 2 The deposit for the 20 caces of softdrinks collected, 81 A chock was drawn to replenish the fund. Currency and coin Poatege stamps Memoranda showing expenditures since November 30,2019 for: Postage Suppl Payment of account Required: Prepare journal entries to record the transactions. 4 4.000 2.000 5,00 drawn to replenish the fund and to 111000 5,000 6.000 Problem 1-9 (IAA) On December 1, 2019, Wacky Company established an imprest petty cash fund. 2019 Dec. 1. Established an imprest petty cash fund of 10,000 by writing a check on National Bank 20 Replenished the petty cash fund by writing a check ‘on National Bank The fund contained: Currency and cxine 4.000 VVouther for sling expenses 5.000 ‘Vouchers for miscellaneous expenses 2.000 Voucher for equipment 2.000 ec. 81 The petty cash fund was not replenished. The fund contained: Currency and coins 600 Postdated employee's check 2000 Vouchers fr sling expenses 1.500 Voucher for transportation ‘a0 2020 ‘ian, 19 Encashed the employee's check. The proceeds were retained in the fund. ‘81 Replenished the petty cash fund by writing a check fon National Bank. The petty cash vouchers for ‘January expenditures are Distribution osta sao ‘Adminitrative expenses 2000 ‘Transportation 1.000 Payment for suppliers inveice 1200 Required: 1. Propare journal entries to record the transactions. 4 How much is the petty eash on January $1, 2020 befere the replenishment?