PSBA MANILA

AC4

VALIX 2022 - CHAPTER 1

PROBLEM 1-1 ALBANIA COMPANY

Cash in bank 2,700,000

Time deposit-30 days 1,000,000
Money market due june 30
Savings deposit in closed bank 500,000
Sinking fund bond is due june 30,2023
Petty cash fund 50,000
Cash and cash equivalent, 12/31/2020 4,250,000

cash in bank 3,000,000

stale checks received - 200,000 AJE: Accounts receivable
Cash in bank
undelivered check issued 250,000 Cash in bank
Accounts payable
postdated check issued 100,000 Cash in bank
Accounts payable
window dressing - 450,000 Sales/Accounts receivabl
Cash in bank
correct cash in bank 2,700,000

PROBLEM 1-2 Argentina Company

Cash on hand 850,000 1M-150k
Petty cash fund 35,000 50k-10k-5k
Security bank 2,000,000
BDO current (overdraft) cl
BPI time deposit-90 days with purpose - not cash
Bond sinking fund 2,500,000 payable next yr, so reclassified to c
Cash and cash equivalents 5,385,000

Petty cash fund (end of year)

Currency and coins xx
Replenishment check xx
Accomodation check (check is not post dated) xx
adjusted balance of petty cash fund, end of yr xx

PROBLEM 1-6 ZENITH COMPANY

 FLUCTUATING/NON-IMPREST METHOD NONFLUCTUATING/IMP
1 Petty cash fund 10,000 Petty cash fund
Cash in bank 10,000 Cash in bank

2 Postage expense 1,500 no entry

Supplies expense 3,000
Petty cash fund 4,500

3 Transportation expense 1,000 no entry

Accounts payable 3,500
Petty cash fund 4,500

4 Petty cash fund 19,000 Petty cash fund

Cash in bank 19,000 Postage expense
Supplies expense
Transportation expense
Accounts payable
Cash in bank
pcf to: new balance 20,000
old/previous balance 10,000
increase in pcf 10,000

PROBLEM 1-7 Laborious Company Imprest method

'May 2 Petty cash fund 10,000
Cash in bank 10,000

May 29 Postage 1,000 pettty cash fund balance,

Supplies 3,000
Transportation expense 2,500
Miscellaneous expense 1,500
Cash in bank 8,000

June 30 Postage 1,000

Supplies 2,000
Transportation expense 1,000
Petty cash fund 4,000
adjusting entry

July 1 Petty cash fund 4,000

Postage 1,000
Supplies 2,000
 Transportation expense 1,000
reversing entry
July 15 Supplies 3,500
Postage 1,500
Transportation expense 1,500
Miscellaneous expense 500
Cash in bank 7,000
replenishment

Petty cash fund 5,000

Cash in bank 5,000

PROBLEM 1-8. Tacit Company

Nov 2 Petty cash fund 10,000
Cash in bank 10,000

Nov 30 Postage 2,000

Supplies 5,000
Cash in bank 7,000

Nov 30 Petty cash fund 10,000

Cash in bank 10,000

Dec 31 Postage 3,000

Supplies 4,000
Special deposit 2,000
Petty cash fund 9,000

2021
Jan. 1 Petty cash fund 9,000
Postage 3,000
Supplies 4,000
Special deposit 2,000

Jan. 2 no entry

Jan. 31 Postage 5,000

Supplies 6,000
Accounts payable 7,000
Cash short or over 1,000
Cash in bank 19,000
PROBLEM 1-10 TRANVIA COMPANY
350,000
750,000
3,500,000
4,600,000 C

PROBLEM 1-11 MYRA COMPANY

500,000
4,000,000
50,000
200,000
100,000
150,000
5,000,000 D

PROBLEM 1-12 STAREX COMPANY

3,000,000
2,500,000
PCF = 50,000-40,000 10,000
1,200,000
1,500,000
8,210,000 C

PROBLEM 1-13 THOR COMPANY

4,000,000
500,000
4,500,000 A

PROBLEM 1-14 WEST COMPANY

Cash in bank = 1.8M - 600,000 1,200,000
50,000
250,000
1,500,000 A

PROBLEM 1-15 BALONEY COMPANY

2,250,000
125,000
2,375,000 B

PROBLEM 1-16 YASMIN COMPANY

50,000
Current account-First bank = 4M +100,000 4,100,000
1,000,000
 5,150,000 B

PROBLEM 1-17 ROMA COMPANY

600,000
4,000,000
1,000,000
2,000,000
450,000
8,050,000 D

PROBLEM 1-18 RAL COMPANY

checkbook balance, 12/31 7,000,000
postdated check - 2,000,000
NSF check - 500,000
undelivered check 300,000
4,800,000 A

PROBLEM 1-19 EVERLAST COMPANY

2,000,000
3,400,000
1,500,000
6,900,000 A

PROBLEM 1-20 CAMPBELL COMPANY

PCF = 50,000-5000-5,000 40,000
cash on hand = 500k - 100k 400,000
4,000,000
1,200,000
1,000,000
2,000,000
8,640,000 A

PROBLEM 1-21 ISABEL COMPANY

200,000
security bank = 5M+100k 5,100,000
manila bank = 4M -500k 3,500,000
2,000,000
1,000,000
11,800,000 A

PROBLEM 1-22 LOVE COMPANY

bank reconciliation:
 checkbook balance 4,000,000
postdated check received - 200,000 Accounts receivable
unreleased check 400,000 undelivered chks
adjusted cash in bank 4,200,000 1. B

petty cash fund 45,000

cash on hand 400,000
cash in bank 4,200,000
cash - dec. 31 4,645,000 2. A

PROBLEM 1-23 MARJORIE COMPANY

coins & currency 22,000
accomodation check 15,000
pcf 37,000 C

PROBLEM 1-24 ADMIRABLE COMPANY

coins & currency 2,000
replenishment check 4,000
pcf 6,000 C

PROBLEM 1-25 PROBLEM 1-26 PROBLEM 1-27

1 D 1 D 1 D
2 B 2 A 2 D
3 A 3 C 3 C
4 B 4 B 4 C
5 D 5 D 5 B
6 C
7 B
8 D
9 A
10 C
 Accounts receivable 200,000
Cash in bank 200,000
Cash in bank 250,000
Accounts payable 250,000
Cash in bank 100,000
Accounts payable 100,000
Sales/Accounts receivable 450,000
Cash in bank 450,000

pose - not cash

next yr, so reclassified to cash
NONFLUCTUATING/IMPREST METHOD
Petty cash fund 10,000
Cash in bank 10,000

Petty cash fund 10,000

Postage expense 1,500
Supplies expense 3,000
Transportation expense 1,000
Accounts payable 3,500
Cash in bank 19,000

pettty cash fund balance, end of year:

currencies and coins xx 6000
replenishment check xx
accomodation check xx
adjusted balance, end of year xx 6000

PCF
10000 adjusting 4000

balance 6000
7/1 4000
10000 orig bal
increase 5000
new bal 15000
 PCF
10000
increase 10000
new bal 20000
adj entry 9000

eoy bal 11000

rev entry 9000
20000

currency 1000
pcv 18000
content of petty
cash box 19000
pcf 20000
shortage 1000
edit unadjusted balances