Cash and Cash Equivalents Sample Problems
1.
The statement of financial position of Kwarta Company shows cash of 330,820. The following items were found to comprise this total amount: Checking account in Metrobank (outstanding checks as of year-end totaled 15,200) Savings account is Far East bank
105,200.00 30,800.00
Petty cash fund (including expense receipts for 250)
1,500.00
Cash on hand (undeposited sales receipts)
4,200.00
Sinking fund cash
35,000.00
Cash in foreign bank (in equivalent pesos)
65,000.00
Customers' check on hand Traveler's Check
14,000.00
Manager's Check
23,120.00
Short term treasury bills
52,000.00
What is the correct amount of cash?
2.
Kuton Company’s checkbook balance at December 31, 2012 was 180,000. In addition, Kuton held the following items in its safe on that date: Check payable to Kuton dated January 2, 2013 in payment of a sale made in December 2012, included in December 31 checkbook balance- 65,000. Check payable to Kuton deposited December 15, but returned by the bank DAIF- 20,000. Check drawn on Kuton’s account, payable to a vendor, dated and recorded on December 30 but not yet mailed to payee as of December 3 1, 2012- 15,000.
What is the correct cash balance of the company?
3.
Green Company’s general ledger showed a balance of 2,205,600 in its cash account on December 31, 2012. Included in this balance are the following items: DAIF checks returned by bank Savings account IOUs Postage stamps Bank draft Cash on hand Cash sinking fund
20,000.00 750,000.00 1,200.00 600.00 10,000.00 30,000.00 500,000.00
Customer's checks dated January 2013 Travel advances Traveler's Checks
5,400.00 4,000.00 8,000.00
What is the correct balance of cash?
4.
Jennifer Incorporated established a petty cash fund of 5,000 for incidental expenses on June 1, 2012. At the end of the month, the count of cash on hand indicated that 670.40 remained in the fund. A review of the petty cash vouchers disclosed the following expenses had been incurred during the month: Office supplies Transportation Postage Miscellaneous Representation
341.60 1,321.40 780.00 837.60 1,000.00
What is the amount of cash shortage? Prepare the adjusting entry for the end of the month.
5.
In your cash count of the petty cash fund of Canyon Company as of July 4, 2012, you f ound the following composition of its petty cash fund: Bills and coins counted Approved and signed petty cash vouchers Dated June 2012 Dated July 1-4, 2012 IOU from Joe Santos, an employee A check drawn by Juvy Victoria, an employee, dated July 15, 2012
2,450.00 3,300.00 800.00 1,400.00 2,000.00
The petty cash fund has an imprest balance of 10,000. The company’s reporting period ends on June 30. What is the correct balance of the petty cash fund? How much is the cash shortage or overage? Prepare the adjusting entry for June 2012
6.
You are attempting to determine an apparent cash shortage that you believe resulted from an employee’s theft. You have assembled the following information for the month of March: Cash balance per books, March 1 Cash receipts for March per books Cash disbursements for March per books Cash balance per bank statement, March 31 Deposit in transit, March 31 Outstanding checks, March 31 Bank service charge for March What is the amount of cash shortage?
115,963.70 246,475.00 334,709.10 15,341.40 9,000.00 2,703.80 92.00
