Name: ______________________________

1. The following data pertain to Lincoln Corporation on

December 31, 2009:
Current account at Metrobank
Current account at Allied Bank
Payroll account
Foreign bank account (in equivalent
pesos)
Savings deposit in a closed bank
Postage stamps
Employees post dated check
IOU from employees
Credit memo from a vendor for a
purchase return
Travelers check
Money order
Petty cash fund (P4,000 in currency and
expense receipts for P6,000)
Pension fund
DAIF check of customer
Customers check dated 1/1/10
Time deposit 30 days
Money market placement (due 6/30/10)
Treasury bills, due 3/31/10 (purchased
12/31/09)
Treasury bills, due 1/31/10 (purchased
1/1/09)

P1,800,000
(100,000)
500,000
800,000
150,000
1,000
4,000
10,000
20,000
50,000
30,000
10,000
2,000,000
15,000
80,000
200,000
500,000
200,000
300,000

Compute for the cash and cash equivalents that should

be reported on the December 31, 2009 balance sheet.
a. P2,784,000
c. P3,784,000
b. P3,084,000
d. P3,584,000
rro
2. Ralf Corporation had the following account balances at
December 31, 2009:
Cash on hand and in bank
Cash restricted for bonds payable due
on June 30, 2010
Time deposit
Savings deposit set aside for dividends
payable on June 30, 2010

5. Cash in bank balance of William Co. on January 1,

2009 was P70,000 representing 35% paid-up Capital
of its authorized share capital of P200,000. During the
year you ascertained the following postings to some
accounts, as follows:
Petty cash fund
Accounts receivable trade
Subscription receivable
Delivery equipment
Accounts payable trade
Bank loan
Accrued expenses
Subscribed share capital
Unissued share capital
Authorized share capital
Sales
Purchases
Expenses (including
depreciation of P5,000 and
accrued expenses of P1,500)

1,000,000
3,000,000
500,000

3. On December 31, 2009, Alfonso Company had the

following cash balances:
P15,000,000
50,000
5,000,000
2,000,000

Cash in bank includes P500,000 of compensating

balance against short term borrowing arrangement at
December 31, 2009. The compensating balance is
legally restricted as to withdrawal by Alfonso. A check
of P300,000 dated January 15, 2010 in payment of
accounts payable was recorded and mailed on
December 31, 2009. In the current assets section of
the December 31, 2009 balance sheet, what amount
should be reported as cash and cash equivalents?
a. P21,850,000
c. P21,800,000
b. P16,850,000
d. P14,850,000
4. On January 1, 2009, Tinoc Company borrows
P2,000,000 from National Bank at 12% annual
interest. In addition, Tinoc is required to keep a
compensatory balance of P200,000 on deposit at
National Bank which will earn interest at 4%. The

Debit
P 2,000
450,000
60,000
50,000
280,000
35,000

Credit
P290,000
50,000
430,000
80,000
1,500
60,000

130,000
200,000
450,000
430,000
90,000

Cash in bank balance at December 31, 2009 was

a. P41,500
c. P34,500
b. P33,000
d. P39,500
6. An office supplies enterprise, operating on a calendaryear basis, has the following data in its accounting
records:

P2,500,000

In the current assets section of Ralfs December 31,

2009 balance sheet, what total amount should be
reported as cash and cash equivalents?
a. P7,000,000
c. P6,500,000
b. P6,000,000
d. P5,500,000

Cash in bank
Petty cash fund
Time deposit
Saving deposit

effective interest that Tinoc pays on its P2,000,000

loan is
a. 10.0%
c. 12.0%
b. 11.6%
d. 12.8%

Cash
Inventory
Accounts receivable
Accounts payable
Sales
Cost of goods sold
Operating expenses

01/01
P 47,000
101,000
82,000
68,000

12/31
P

93,000
116,000
63,000
1,150,000
900,000
200,000

What is the expected cash balance for December 31?

a. P50,000
c. P 76,000
b. P66,000
d. P134,000
CIA 1189 IV-14
7. The petty cash fund of Guiguinto Company on
December 31, 2009 is composed of the following:
Coins and currencies
Petty cash vouchers:
Gasoline payments
Supplies
Cash advances to employees
Employees check returned by bank
marked NSF
Check drawn by the company payable to
the order of the petty cash custodian,
representing her salary
A sheet of paper with names of
employees together with contribution
for a birthday gift of a co-employee
in the amount of

P14,000
3,000
1,000
2,000
5,000
20,000

8,000
P53,000

The petty cash ledger account has an imprest balance

of P50,000. What is the correct amount of petty cash
on December 31, 2009?
a. P34,000
c. P39,000
b. P14,000
d. P42,000

1. On December 31, 2009, the cash account of Jen

Company has a debit balance of P3,500,000.
An
analysis of the cash account shows the following
details:
Undeposited collections
Cash in bank-PCIB checking account
Cash in bank-PNB (overdraft)
Undeposited NSF check received from a
customer, dated December 1, 2009
Undeposited check from a customer,
dated January 15, 2010
Cash in bank-PCIB (fund for payroll)
Cash in bank-PCIB (savings deposit)
Cash in bank-PCIB (money market
instrument, 90 days)
Cash in foreign bank (restricted)
IOUs from officers
Sinking fund cash
Listed stock held as temporary
investment

60,000
500,000
(50,000)
15,000
25,000
150,000
100,000

2,000,000
100,000
30,000
450,000
120,000
P3,500,000

Cash and cash equivalents on Jens December 31,

2009 balance sheet should be
a. P2,760,000
c. P2,885,000
b. P2,810,000
d. P2,935,000
rpcpa/Valix 6-20
2. Diversity
Corporation's
checkbook
balance
on
December 31, 2009, was P800,000.
In addition,
Diversity held the following items in its safe on
December 31:
Check payable to Diversity Corporation,
dated January 2, 2010, not included in
December 31 checkbook balance
Check payable to Diversity Corporation,
deposited December 20, and included in
December 31 checkbook balance, but
returned by bank on December 30,
stamped "DAIF."
The check was
redeposited January 2, 2010, and
cleared January 7
Check drawn on Diversity Corporation's
account, payable to a vendor, dated
and recorded December 31, but not
mailed until January 15, 2010

P200,000

40,000

100,000

The proper amount to be shown as cash on Diversity's

balance sheet at December 31, 2009, is
a. P760,000
c. P860,000
b. P800,000
d. P975,000
P2 M10 pp. 377 Wiley 07-08
3. The Ingersoll Co.s ledger showed a balance in its cash
account at December 31, 2009 of P341,125 which was
determined to consist of the following:
Petty cash fund
Cash in Allied Bank per bank statement
with a check for P3,000 still
outstanding
Notes receivable in the possession of a
collecting agency
Undeposited receipts, including postdated
check for P5,250 and travelers check
for P5,000

1,800

168,375
12,500
89,000

Bond sinking fund cash

IOUs signed by employees
Paid vouchers not yet recorded
Total

63,750
2,475
3,225
P341,125

At what amount should Cash on hand and in bank be

reported on Ingersolls balance sheet?
a. P267,375
c. P331,125
b. P250,925
d. P314,675
RPCPA 1084-AMP
4. The following items were included as cash in the books
of Gotch Co.:
Checking account at Security Bank
Checking account at BPI
Checking account at Citytrust used for
payment of salaries
Postage stamps
Employees post-dated check
I.O.U. from an employee
A check marked DAIF
Postal money order
Petty cash fund (P324 in expense
receipts)
Certificate of time deposit with BPI
A gold ring surrendered as security by a
customer who lost his wallet (at
market value)

(P1,200)
5,335
5,500
107
2,300
200
1,250
500
500
5,000
1,500

The correct amount that should be reported as cash is

a. P11,835
c. P16,511
b. P11,011
d. P11,511
RPCPA 0592
5. Aguinaldo Corporation had the following transactions in
its first year of operations:
Sales (90% collected in the first year)
Disbursements for costs and expenses
Purchases of equipment for cash
Proceeds from issuance of ordinary
shares
Payments on short-term borrowings
Proceeds from short-term borrowings
Depreciation on equipment
Disbursements for income taxes
Bad debt write-offs

P750,000
600,000
200,000
250,000
25,000
50,000
40,000
45,000
30,000

What is the cash balance at December 31 of the first

year?
a. P 75,000
c. P 85,000
b. P105,000
d. P140,000
6. Pops Co. established a P3,000 petty cash fund.
found the following items in the fund:

You

Cash and currency

P1,683.80
Expense vouchers
829.80
Advance to salesman
200.00
IOU from employee
300.00
In the entry to replenish the fund, what amount should
be debited to Cash Short and Over?
a. P500.00
c. P13.60
b. P300.00
d. P
0
MC7-8 FAR Cabrera, 2005