Reference no: EM133066249

Questions -

Use the following information for the next two (2) questions: A surprise count of the petty cash fund of Jing Trading on July 4, 2021 showed the following: Currencies 5.600 Coins 450 Paid vouchers for: Office supplies (dated July 2, 2021) 1.750 Newspaper subscription for two weeks (dated June 29, 2021) 300 Loans to employees 3.000 Company check representing replenishment of petty cash fund 3,850 The company's fiscal year ends of June 30. The petty cash fund was established for an amount of P15.000.

Q1. What is the correct amount of petty cash fund at June 30, 2021?

a. 6,050

b. 9,900

c. 11,650

d. 15,000

Q2. How much is the shortage or overage in the petty cash fund at June 30, 2021?

a. 50 shortage

b. 50 overage

c. 1,800 shortage

d. 1,800 overage

Q3. Sunshine Inc. assigns P1,500,000 of its accounts receivables as collateral for a P1,000,000 loan with a bank. The bank assesses a 3% finance fee and charges interest on the note at 6%. The journal entry to record this transaction would not include a Group of answer choices

a. Debit to cash for P970,000

b. Debit to finance charge for P30,000

c. Credit to notes payable for P1,000,000

d. Credit to accounts receivable for P1,000,000

On August 31, 2023, an entity discounted with recourse a note at the bank at discount rate of 15%. The note was received from the customer on August 1, 2023 for 90 days with face amount of P9,000,000 and an interest rate of 12%.

The discounting transaction is accounted for as secured borrowing. The customer paid the note to the bank on October 30, 2023, the date of maturity.

Q4. What is the interest expense to be recognize on August 31, 2023?

a. 90,000

b. 51,750

c. 231,750

d. 270,000

Q5. The entry on October 30, 2023 will include

a. Debit to notes receivable discounted P9,000,000

b. Debit to loans payable P9,038,250

c. Credit cash P9,000,000

d. Debit to loans payable P9,000,000