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    Ae 15 Bs Acc 1 Home Based Activity

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    Mae Ann Raquin
    1. Zenith Company established a $10,000 petty cash fund and had various disbursements and receipts. They issued a check to replenish the fund to $20,000. 2. Apathy Co. had various bank deposits and withdrawals. Their bank statement did not match their records so adjustments were needed. 3. Efficient Company's cash records for April did not match their bank statement so a proof of cash was needed to reconcile.

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    Ae 15 Bs Acc 1 Home Based Activity

    Uploaded by

    Mae Ann Raquin
    58 views4 pages
    1. Zenith Company established a $10,000 petty cash fund and had various disbursements and receipts. They issued a check to replenish the fund to $20,000. 2. Apathy Co. had various bank deposits and withdrawals. Their bank statement did not match their records so adjustments were needed. 3. Efficient Company's cash records for April did not match their bank statement so a proof of cash was needed to reconcile.

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    1. Zenith Company established a $10,000 petty cash fund and had various disbursements and receipts. They issued a check to replenish the fund to $20,000. 2. Apathy Co. had various bank deposits and withdrawals. Their bank statement did not match their records so adjustments were needed. 3. Efficient Company's cash records for April did not match their bank statement so a proof of cash was needed to reconcile.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    58 views4 pages

    Ae 15 Bs Acc 1 Home Based Activity

    Uploaded by

    Mae Ann Raquin
    1. Zenith Company established a $10,000 petty cash fund and had various disbursements and receipts. They issued a check to replenish the fund to $20,000. 2. Apathy Co. had various bank deposits and withdrawals. Their bank statement did not match their records so adjustments were needed. 3. Efficient Company's cash records for April did not match their bank statement so a proof of cash was needed to reconcile.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    AE 15 INTERMEDIATE ACCOUNTING 1

    Directions: Read the problem carefully. Select 5 out of 7 problems. On a piece of paper
    write your answer and your solution. Send your answer in our GC on messenger. (you may
    send your answer either word docs or picture). Deadline: March 20, 2020.

    1. Zenith Company provided the following chronological transactions in relation to petty


    cash: (PROBLEM 1-6 IA 1 2019 EDITION)
    1. The entity established a petty cash fund of P10,000.
    2. Petty cash disbursement were:
    Postage 1,500
    supplies 3,000
    3. Petty cash disbursement
    Transportation 1,000
    Accounts payable 3,500
    4. Issued check for an amount to replenish the fund and bring the balance of the petty
    cash to P20,000.

    Required:
    Prepare all entries to record the transactions under each of the following:
    a. Fluctuating fund system
    b Imprest fund system.
    .

    2. From the following information, prepare a bank reconciliation statement, using the
    adjusted balance method. Also, prepare adjusting entries on the books of Apathy Co..
    (PROBLEM 2-1 IA 1 2019 EDITION)
    Apathy Company
    Date Check No. Withdrawal Deposits Balance
    Dec. 2 100,000 100,000
    18 104 10,000 90,000
    20 101 5,000 85,000
    22 106 25,000 60,000
    27 50,000 110,000
    29 10,000 120,000
    29 103 40,000 80,000
    29 CM 30,000 110,000
    31 SERVICE CHARGE 2,000 108,000
    DM

    FIRST BANK
    Dec. 1 Deposit 10,000 Dec.4 Check No. 101 5,000
    21 Deposit 50,000 6 Check No. 102 15,000
    27 Deposit 10,000 8 Check No. 103 40,000
    31 Deposit 80,000 8 Check No. 104 10,000
    10 Check No. 105 30,000
    14 Check No. 106 25,000
    28 Check No. 107 50,000

    The credit made by the bank on December 29 represents the proceeds of a note received
    from a customer which was given to the bank or collection by the entries on December
    29.

    Required:
    Prepare a bank reconciliation statement, using the adjusted balance method.
    Also, prepare adjusting entries on the books of Apathy Company.

    3. The records of Efficient Company showed the following: (PROBLEM 3-5 IA 1 2019
    EDITION)
    Cash in bank balance, March 31 200,000
    Book credits for April 720,000
    Book debits for April 800,000

    Bank statement balance, March 31 330,000


    Bank debits 530,000
    Bank credits 700,000

    Note collected by bank


    March 31 60,000
    April 30 100,000

    Service charge
    March 31 8,000
    April 30 2,000

    NSF check
    March 31 20,000
    April 30 30,000

    Deposit in transit
    March 31 80,000
    April 30 220,000

    Outstanding checks:
    March 31 178,000
    April 30 372,000

    Required: Prepare proof of cash for the month of April following the “book to
    bank” method.
    4. Grumpy Company sells directly to customers. On January 1, 2020, the balance of
    accounts receivable of accounts receivable is P250,000 and the allowance for doubtful
    accounts has a credit balance of P20,000.
    The following data are available:
    Credit sales Writeoff Recoveries
    2017 1,100,000 26,000 2,000
    2018 1,200,000 29,000 3,000
    2019 1,500,000 30,000 4,000
    2020 3,000,000 40,000 5,000

    Doubtful accounts are provided for a percentage of credit sales. The accountant
    calculates the percentage annually by using the experience of the three years prior to
    the current year.

    The formula is accounts written off less recoveries expresses as a percentage of the
    credit sales for the period.

    Cash receipts in 2020 from credit sales including recoveries amounted to P2,615,000.

    Required:
    1. What is the percentage to be used in computing the allowance for doubtful
    accounts on December 31, 20120?
    2. How much is the provision for doubtful accounts for 2020?
    3. What is the ledger balance of accounts receivable on December 31, 2020?
    4. What is the ledger balance of the allowance for doubtful accounts after
    necessary adjustments on December 31, 2020?

    5. Feasible Company sold to another entity a tract of land costing P5,000,000 for
    P7,000,000 on January 1, 2020. The buyer paid P1,000,000 down and signed a two-
    year promissory note for the remainder of the purchase price plus 12% interest
    compounded annually. The notes matures on January 1, 2022.

    Required: Prepare all indicated entries for 2020, 2021, 2022. (PROBLEM 6-1 IA 1
    2019 EDITION)

    6. Solvent Bank loaned P10,000,000 to a borrower on January 1, 2017. The terms of the
    loan require principal payments of P2,000,000 each year for 5 years plus interest at 8%.
    The first principal and interest payments is due on December 31, 2017. The borrower
    made the required payments on December 31, 2017 and December 31, 2028. However,
    during 2019 the borrower began to experience financial difficulties, requiring the bank
    to reassess the collectability of the loan.

    On December 31, 2019, the bank has determined that the remaining principal payments
    will be collected but the collection of the interest is unlikely. The bank has accrued the
    interest for 2019. The principal payments are expected to be P1,000,000 on December
    31, 2020, P2,000,000 on December 31, 2021 and P3,000,000 on December 31, 2022.
    The present value of 1 at 8% for one period is .93, for two period is .86 and for three
    periods is .79.

    Required: (PROBLEM 7-5 IA 1 2019 EDITION)


    1. Compute the impairment loss on the loan receivable.
    2. Prepare all indicated entries for 2019, 2020 and 2021.

    7. Pauper Bank granted a loan to a borrower on January 1, 2020. The interest on the loan
    is 8% payable annually starting December 31, 2020. The loan matures in three years on
    December 31, 2022. Data related to the loan are:

    Principal amount 3,000,000


    Origination fees charged against the borrower 100,000
    Direct origination cost incurred 260,300

    After considering the origination fees charged to the borrower and the direct origination
    cost incurred, the effective rate of the loan is 6%.

    Required: Prepare all indicated entries for 2020, 2021 and 2022. (PROBLEM 7-3
    IA 1 2019 EDITION)

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