CASE 1 - Haruhi Fujioka Company

Current account at Banco De Oro 2,500,000

Checking account at Metrobank 1,800,000
Payroll account – designated for managerial levels only 950,000
Bank account (FCDU), converted in PHP 3,100,000
Postdated checks payable to supplier 80,000
Travelers check 250,000
Money order 90,000
Petty cash fund (Imprest balance) (15,000 - 7,000) 8,000
Change and tax funds 500,000
Time deposit at Metrobank, 50 days with rollover agreement 800,000
Money market placement 750,000
Treasury bills, due 3/31/17 300,000
Total Cash and cash equivalents 11,128,000
CASE 2 - Black Jack Company

Cash on hand 372,000

Add (less):
NSF check (50,000)
Customers postdated check (30,000)
Adjusted 292,000

Petty cash fund:

Currency and coins 2,500
Check drawn to custodian 4,500
Total 7,000

Asian development bank 950,000

Undelivered check 60,000
Company's postdated check 90,000
Adjusted 1,100,000

Land bank account CA 1 1,280,000

Land bank account CA 2 (40,000)
Adjusted 1,240,000
Cash on hand 292,000
Petty cash fund 7,000
Asian Development bank 1,100,000
Land Bank 1,240,000
Time deposit in Metrobank - 2 months 250,000
Total cash in FS 2,889,000
CASE 3 - Alucard Company

Cash equivalents per book 1,200,000

Gift certificates (50,000)
Certificate of deposit (200,000)
Time deposit in BDO 500,000
Total cash equivalents 1,450,000

Cash in Metrobank per book 2,000,000

Cash in BDO per book checking account (300,000)

Check #1 100,000
Check #2 60,000
Check #4 70,000
Check #5 40,000
Adjusted - overdraft (liability) (30,000)

Adjusted cash in BDO to be presented P0

Cash in BPI per book 3,000,000

Check #2 (70,000)
Check #3 500,000
Adjusted cash in BPI 3,430,000
Total cash equivalents 1,450,000
Cash in Metrobank per book 2,000,000
Adjusted cash in BDO to be presented -
Adjusted cash in BPI 3,430,000
TOTAL CASH in FS 6,880,000
CASE 4 - Arsene Lupin III Company

CASH
Initial Investment 150,000 190,000
Collections from customers 370,000 180,000
Bank Loan 98,000 80,000
END 168,000
133,500
Correct Cash Balance 34,500

Accounts Payable
payments 190,000 250,000
60,000

Merchandise Inventory
purchases 250,000 220,000
END 30,000

Cash Sales 5,000

Credit Sales 435,000
Net sales 440,000

Accounts Receivable
Sales 435,000 365,000
END 70,000
 Bank
payment to suppliers Unadjusted Balance 30,500
payment for operating expenses Deposit in Transit 5,000
payment for bank loan Outstanding Check (4,500)
Adjusted Cash In Bank Balance 31,000
Cash Shortage Petty Cash Fund 3,500
Correct Cash Balance 34,500

Purchases
End

Cost of Sales (*GP = 50%)

Collections from customers

CASE 5 - Naruto Agribusiness

Accountability:
Petty cash fund 8,000.00
Checks
(2,800.75 + 2,250) 5,050.75
Envelope 1,450.00 14,500.75

Accounted for:
Bills and coins (2,630 +913.25) 3,543.25
Unreplenished vouchers 4,266.95
Checks 5,050.75
IOU from Ms. Menchin 1,400.00 14,260.95
SHORTAGE 239.80

Bills and coins (3,543.25 - 1,450) 2,093.25

Vouchers dated Jan. (235.50 +140) 375.50
Accom check 95.00
Petty cash fund balance 2,563.75
Imprest balance 8,000.00
Unreplenished vouchers (4,266.95)
Vouchers dated Jan. (235.50 +140) 375.50
Advances (1,400.00)
Accom check 95.00
Shortage (239.80)
Adjusted balance 2,563.75
CASE 6 - Afro Company

Accountability:
Petty cash fund 40,000
Colections with OR 178,500
Colections without OR 56,000
Accomodation check 6,800
Unclaimed salaries 25,000 306,300

Accounted for:
Bills and coins 14,155
Checks (excluding aliara and afro) 170,800
Unreplenished vouchers 35,500 220,455
SHORTAGE 85,845

Petty cash fund (accom check) 6,800

Proposed Adjusting Journal Entries:

Cash 110,000
Accounts payable 110,000

Advances to employee 25,000

Postage expense 6,500
Transportation expense 500
Repairs expense 3,500
Petty cash fund 35,500

Cash 25,000
Salaries payable 25,000

Transportation expense 16,800

Petty cah fund 6,800
Advances to employee 23,600

Receivable from custodian 85,845

Petty cash fund 4,500
Cash 81,345
CASE 7 - Ludo Company

Outstanding checks, December 31 (P49,400 – P1,400 – P8,000) 40,000

DECEMBER
Nov 30 Receipts
Unadjusted per bank 194,000 1,487,000
Outstanding checks:
Nov. 30 (23,000) -
Dec. 31 - -
Deposits in transit:
Nov. 30 11,000 (11,000)
Dec. 31 - 24,000
Interest on note discounted
(P90,000 x 6% 60/360) - 900
NSF checks - (4,000)
Bank service charge - -
Cancellation of check no. 1434 - -
Error in recording check no. 1562 (7,500 - 750) - -
Cancellation of check no. 1584 - -
Counter check drawn by president - -
Check of Luden charge in error - -
Postdated check presented for payment - -
Per book balances 182,000 1,496,900

Unadjusted balances
Outstanding checks
Deposits in transit
Interest on note discounted
Bank service charge
Cancellation of check no. 1434
Error in recording check no. 1562
Cancellation of check no. 1584
Counter check
Check of Luden charged in error
Postdated check presented for payment
Adjusted balance
DECEMBER
Disb. Dec 31
1,325,000 356,000

(23,000) -
40,000 (40,000)

- 24,000

- 900
(4,000)
(300) 300
1,400 (1,400)
6,750 (6,750)
8,000 (8,000)
(2,000) 2,000
(3,000) 3,000
(100,000) 100,000
1,248,850 430,050

Book Bank
430,050 356,000
- (40,000)
- 24,000
(900) -
(300) -
1,400 -
6,750 -
8,000 -
(2,000) -
- 3,000
(100,000) -
343,000 343,000
CASE 8 - Luwi Madie Lim

Petty cash fund:

Currency and coins 9,500
Voucher dated January 410
PCF December 31 9,910

Accountability:
PFC imprest balance 25,000
Currency in envelope 3,000 28,000

Accounted for:
Currency and coins 9,500
Advances 9,200
Currency in envelope 3,000
Unreplenished voucher 2,900 24,600
Shortage (3,400)

Cash on hand:
Unadjusted balance 750,000
DAIF check (80,000)
Posted customers check (40,000)
Stale check (45,000)
Adjusted balance 585,000

Cash in bank:
Cash in bank - Marvin Gaye Bank:
Unadjusted balance 2,000,000
Undelivered check 125,000 2,125,000
Cash in bank - Big Nowi Bank
(1,580,000 - 80,000) 1,500,000
Total cash in bank 3,625,000

Petty cash fund 9,910

Cash on hand 585,000
Cash in bank 3,625,000
Cash equivalents 1,000,000
Total cash in FS 5,219,910
CASE 9 - ANDREW BELSS

Oustanding checks:
OC, beg 26,130
Check disb per book (327,165 + 15,900) 343,065
Check disb per bank (354,225 - 5,940) (348,285)
OC, end 20,910

Deposit in transit, beg 9,000

Deposits per book in July 381,840
Deposits per bank in July (375,840)
Deposit in transit, end 15,000

Book Bank
Unadjusted balances 124,840 10,440
DIT 15,000
OC (20,910)
Unrecorded check in July (15,900)
Bank charge error 5,940
DAUD check (4,665)
Bank service charge (1,305)
Notes paid by the bank (87,000)
Interest on notes (91,500 - 87,000) (4,500)
Balances 11,470 10,470
Shortage (1,000) -
Adjusted balance 10,470 10,470

Book June Receipts Disbs. July

Unadjusted balances 70,165 381,840 327165 124,840
July service charge 1,305 (1,305)
DAUD check in July 4,665 (4,665)
Notes paid by the bank 87,000 (87,000)
Interest on notes 4,500 (4,500)
Book error, unrecorded check 15,900 (15,900)
Adjustment for: - - - -
Cash shortage (1,000) (1,000)
Adjusted balances 69,165 381,840 440,535 10,470
Bank June Receipts Disbs. July
Unadjusted balances 86,295 375,840 451,695 10,440
Deposit in transit
June 9,000 (9,000)
July 15,000 15,000
Outstanding checks
June (26,130) (26,130)
July 20,910 (20,910)
Bank error (5,940) 5,940
Adjusted balances 69,165 381,840 440,535 10,470
CASE 10 - MITSUBISHI CO.

Petty cash fund (50,000 -5,000 -5,000) 40,000

Cash on hand (500,000 - 100,000) 400,000
Cash in bank – payroll account 1,000,000
Cash in bank – current account 4,000,000
Money order 500,000
Total cash 5,940,000

Time deposit 2,000,000

Money market 500,000
Total cash equivalent 2,500,000
CASE 11 - LEVIS COMPANY

Deposit in transit
Beginning balance 123,200
Deposits per book (464,800 + 80,000) 544,800
Deposits per bank (480,000)
Deposit in transit - adjusted 188,000

Outstanding checks
Beginning balance 160,000
Checks disb. per book 248,000
Checks disb. per bank (320,000)
Outstanding checks - adjusted 88,000

Unadjusted bank balance 692,000

Adjusted receipts 188,000
Adjusted disbursements (88,000)
Adjusted cash balance 792,000
CASE 12 - JAG CO.
Deposits in transit, Nov. 30
Add collections in December:
December book receipts 963,230
Customers' note collected by bank in Nov. (20,000)
Total
Less deposits credited by the bank in December:
December bank receipts 941,010
NSF check redeposited (Customer A) (3,270)
Deposits in transit, Dec. 31

Outstanding checks, Nov. 30

Add checks issued in December:
December book disbursements 1,008,480
Collection fee for note collected in Nov. (80)
Total
Less checks paid by the bank in December:
December bank disbursements 1,010,410
Bank error in check payment (P1,340 - P340) (1,000)
NSF check - Customer A (3,270)
NSF check - Customer B (6,730)
Outstanding checks, Dec. 31

Deposits in transit, Dec. 31 (see Requirement 1.a)

Add collections, Jan. 1-12:
Jan. 1-12 book receipts 292,500
NSF check - Customer B 6,730
Total
Less deposits credited by the bank, Jan. 1-12:
Jan. 1-12 bank receipts 321,490
Correction of error in check payment in Dec. (1,000)
Deposits in transit, Jan. 12

Outstanding checks, Dec. 31 (see Requirement 1.b)

Add checks issued, Jan. 1-12:
Jan. 1-12 book disbursements 177,570
Unrecorded payroll checks 5,500
Total
Less checks paid by the bank, Jan. 1-12:
Outstanding checks, Jan. 12

BANK December
 Nov. 30 Receipts Disb

Unadjusted bank balances 344,420 941,010 1,010,410

Deposits in transit:
Beginning of period 35,000 (35,000)
End of period 40,490
Outstanding checks:
Beginning of period (88,240) (88,240)
End of period 97,230
Bank error in check payment (1,000)
NSF check redeposited (Customer A) (3,270) (3,270)
Adjusted bank balances 291,180 943,230 1,015,130

BOOK December
Nov. 30 Receipts Disb
Unadjusted book balances 271,260 963,230 1,008,480
Note collected by bank in Nov. 19,920 (20,000) (80)
NSF check not redeposited (Customer B) 6,730
Unrecorded payroll in Jan.
Adjusted book balances 291,180 943,230 1,015,130
- - -
 35,000

943,230
978,230

937,740
40,490

88,240

1,008,400
1,096,640

999,410
97,230

40,490

299,230
339,720

320,490
19,230

97,230

183,070
280,300
230,180
50,120

January 1-12
Dec. 31 Receipts Disb Jan. 12

275,020 321,490 230,180 366,330

(40,490)
40,490 19,230 19,230

(97,230)
(97,230) 50,120 (50,120)
1,000 (1,000)

219,280 299,230 183,070 335,440

January 1-12
Dec. 31 Receipts Disb Jan. 12
226,010 292,500 177,570 340,940

(6,730) 6,730
5,500 (5,500)
219,280 299,230 183,070 335,440
- - - -
CASE 13 - WRANGLER CO.

C. Cash in Bank (under) 28,000

HOBA 28,000

D. HOBA 45,000
Cash in Bank (over) 45,000

Net effect - overstated (17,000)

CASE 14 - MANILA COMPANY

Balance per bank statement, 12/31/17 547,800

Add: Deposits in transit 134,250
Bank error-deposit not recorded 6,000 140,250
Total 688,050
Less: Outstanding checks 98,850
Adjusted bank balance, 12/31/17 589,200

Balance per books, 12/31/17 687,570

Add: Book error - Check No. 748 15,000
Customer note collected by bank 46,290 61,290
Total 748,860
Less: Dishonored note 142,650
Book error-improperly recorded deposit 1,950
NSF check 12,960
Bank service charges 2,100 159,660
Adjusted book balance, 12/31/17 589,200

Unadjusted beginning cash per books 687,570

Adjusted cash balance 589,200
Net adjustnent in cash balance 98,370
CASE 15 - RUMA INC.

PER BOOK
Unadjusted balaces (65,120)
Deposit in transit
Outstanding checks
Book error (188,040-58,080) (129,960)
Notes collected including interest 505,000
NSF check (84,080)
Undeposited collection
Undeposited petty cash balance (10,000 - 6,400) (6,400)
Balances 219,440
Cash shortage (128,050)
CASH BALANCE 91,390

Adjusted cash balance 91,390

Unadjusted cash balance per book (65,120)
Net adjustment in cash 156,510

ADJUSTMENTS:
Accounts payable 129,960
Cash 129,960

Cash 505,000
Notes receivable 500,000
Interest income 5,000

Accounts receivables 84,080

Cash 84,080

Various accounts (expenses) 6,400

Petty cash fund (cash) 6,400

Receivable from custodian 128,050

Cash 128,050
PER BANK
399,850
70,000
(408,110)

26,050
3,600
91,390
-
91,390
ANSWERS FOR THEORIES
1 D
2 B
3 C
4 B
5 D
6 B
7 B
8 C
9 A
10 B
11 C
12 D
13 B
14 C
15 D
16 C
17 B
18 C
19 A
20 D
21 B
22 A
23 D
24 A
25 D