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    Cash and Cash Equivalent Activity

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    Astherielle
    The document describes transactions involving a petty cash fund for Zeus Company between November 2019 and February 2020. It establishes a $10,000 petty cash fund in November 2019, records replenishments and adjustments to the fund over time, and asks to record the transactions under the imprest system of accounting.

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    Cash and Cash Equivalent Activity

    Uploaded by

    Astherielle
    104 views3 pages
    The document describes transactions involving a petty cash fund for Zeus Company between November 2019 and February 2020. It establishes a $10,000 petty cash fund in November 2019, records replenishments and adjustments to the fund over time, and asks to record the transactions under the imprest system of accounting.

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    The document describes transactions involving a petty cash fund for Zeus Company between November 2019 and February 2020. It establishes a $10,000 petty cash fund in November 2019, records replenishments and adjustments to the fund over time, and asks to record the transactions under the imprest system of accounting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    104 views3 pages

    Cash and Cash Equivalent Activity

    Uploaded by

    Astherielle
    The document describes transactions involving a petty cash fund for Zeus Company between November 2019 and February 2020. It establishes a $10,000 petty cash fund in November 2019, records replenishments and adjustments to the fund over time, and asks to record the transactions under the imprest system of accounting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 3

    PROBLEM NO.

    Zeus Company provided the following chronological transactions in


    relation to petty cash:
    1. November 10, 2019- The entity established a fund of 10,000.
    2. November 29, 2019- Replenished the fund. The petty cash items
    include the following: Currency and coin, 2,000; Supplies, 5,000;
    Telephone, 1,800; Postage, 1,200.
    3. December 31, 2019- End of accounting period. The fund was not
    replenished. The fund is composed of the following: currency and
    coin, 7,000; Supplies, 1,500; Postage, 500; Miscellaneous
    Expense, 1,000.
    4. January 1, 2020- The adjustment made on December 31, 2019 is
    reversed.
    5. February 22, 2020- The fund is replenished and increased to
    15,000; The composition of the fund is as follows: Currency and
    coin, 1,000; Supplies, 4,500; Postage, 3000; Miscellaneous,
    1,500.
    Prepare all entries to record the transactions under Imprest fund
    system.
    PROBLEM NO. 2

    The cash account of the NCOV Corporation as of December 31, 2006 consists of the
    following:

    On deposit in current account with Real Bank P 900,000

    Cash collection not yet deposited to the bank 350,000

    A customer’s check returned by the bank for 150,000


    insufficient fund

    A check drawn by the Vice-President of the


    Corporation dated January 15, 2007
    70,000

    A check drawn by a supplier dated December 28,


    2006 for goods returned by the Corporation
    60,000

    A check dated May 31,2006 drawn by the


    Corporation against the Piggy Bank in payment
    of customs duties. Since the importation did
    not materialize, the check was returned by the
    customs broker. This check was an outstanding
    check in the reconciliation of the Piggy Bank 410,000
    account

    Petty Cash fund of which P5,000 is in currency;


    P3,600 in form of employees’ I.O.U. s; and
    P1,400 is supported by approved petty cash
    vouchers for expenses all dated prior to
    closing of the books on December 31, 2006
    10,000

    Total 1,950,000

    Less: Overdraft with Piggy Bank secured by a


    Chattel mortgage on the inventories
    300,000

    Balance per ledger P1,650,000

    Question:

    At what amount will the account “Cash” appear on the December 31, 2006 balance
    sheet?
    PROBLEM NO. 3

    You noted the following composition of Valentines Company’s “cash account” as of


    December 31, 2006 in connection with your audit:

    Demand deposit account P2,000,000

    Time deposit – 30 days 1,000,000

    NSF check of customer 40,000

    Money market placement (due June 30, 1,500,000


    2007)

    Savings deposit in a closed bank 100,000

    IOU from employee 20,000

    Pension fund 3,000,000

    Petty cash fund 10,000

    Customer’s check dated January 1, 2007 50,000

    Customer’s check outstanding for 18


    months 40,000

    Total P7,760,000

    Additional information follows:

    a) Check of P200,000 in payment of accounts payable was recorded on December 31,


    2006 but mailed to suppliers on January 5, 2007.
    b) Check of P100,000 dated January 15, 2007 in payment of accounts payable was
    recorded and mailed on December 31, 2006.
    c) The company uses the calendar year. The cash receipts journal was held open
    until January 15, 2007, during which time P400,000 was collected and recorded
    on December 31, 2006.

    Question:

    The cash and cash equivalents to be shown on the December 31, 2006 balance sheet
    is.

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