Reference no: EM132632925

Questions - Accounting for Cash, Cash Equivalents & Bank Recon.

Solve for the following questions:

Q1) In preparing its May 31, 2020 bank reconciliation, Catt Co. has the following information available:

Balance per bank statement, 5/31/2020 P 30,000

Deposit in transit, 5/31/2020 5,400

Outstanding Checks, 5/31/2020 4,900

Note collected by bank in May 1,250

Question: What was the correct balance of cash at May 31, 2020?

Q2) Love Thy Neighbor Corporation has the following items presented to you as Cash and Cash Equivalents as of December 31, 2019.

Current Account BPI 6,000,000

Current Account at PCI Bank (300,000)

Payroll Account 1,500,000

Foreign Bank Account-restricted in US Dollar 60,000

Postage Stamps 3,000

Employee Post Dated Check 12,000

IOU from a key Officer 30,000

Credit Memo from a Vendor for a Purchase Return 60,000

Traveler's check 150,000

Customer's Not Sufficient Cash Check 45,000

Money Order 90,000

Petty Cash (P 12,000 in currency and 18,000 expenses) 30,000

Treasury bills, purchased 12/31/2019 due 3/31/2020 600,00

Treasury bills, purchased 01/01/2019 due 1/31/2020 900,00

Change Funds 10,000

Bond Sinking Fund 1,000,000

Additional Information: The exchange rate of $1 to P 1 as of Dec. 31, 2019 is P 50.

Question:

(a) What is the total amount to be reported as Cash and Cash Equivalents as of December 31, 2019?

(b) If the items are not Cash and Cash Equivalents, What total amount will they be classified as Currents Assets?

(c) If the items are not Cash and Cash Equivalents, What total amount will they be classified as Non-Current Assets?

Q3) The cash account shows a balance of P 45,000 before reconciliation. The bank statement does not include a deposit of P 2,300 made on the last day of the month. The bank statement shows a collection by the bank of P 940 and a customer's check for P 320 was returned because it was NSF. A customer's check for P 450 was recorded on the books as P 540, and a check written for P 79 was recorded as P 97. What was the correct balance in the cash account?

Q4) In preparing its bank reconciliation for the month of April 2020, Henke Inc. has the available following information:

Balance per bank statement, 4/30/2020 P 39,140

NSF check returned with 4/30/2020 bank statement P 450

Deposits in transits, 4/30/2020 P 5,000

Outstanding checks, 4/30/2020 P 5,200

Bank service charges for April P 20

Question: What should be the correct balance of cash at April 30, 2020?

Q5) If the month-end bank statement shows a balance of P 36,000, outstanding checks are P 12,000, a deposit of P 4,000 was in transit at month end, and a check for P 500 was erroneously charged by the bank against the account. What is the correct balance in the bank account at month end?

Q6) Fresh, Inc. had the following bank reconciliation at March 31, 2020:

Balance per bank statement, 3/31/2020 P 37,200

Add: Deposit in transit 10,300

Total 47,500

Less: Outstanding Checks 12,600

Balance per book, 3/31/2020 P 34,900

Data per bank for the month of April 2020 are as follows:

Deposits P 46,700

Disbursements 49,700

Additional Information: All reconciling items at March 31, 2020 cleared the bank in April. Outstanding checks at April 30, 2020 totaled P 6,000. There were no deposits in transit at April 30,2020.

Question: What is the cash balance per books at April 30, 2020?

Q7) Is a petty cash fund is established in the amount of P 250, and contains P 150 in cash and P 95 in receipts for disbursements. When it is replenished, the journal entry to record should include credits to Petty Cash accounts amounting to what amount?

Q8) Finley, Inc.'s checkbook balance on December 21, 2020 was P 21,200. In addition, Finley held the following items in its safe on December 31.

(a) A check for P 450 from Peters, Inc. received December 30, 2020, which was not included in the checkbook balance.

(b) An NSF check from Garner Company in the amount of P 900 that had been deposited at the bank, but was returned for lack of sufficient funds on December 29. The check was to be redeposited on January 3, 2021. The original deposit has been included in the December 31 checkbook balance.

(c) Coin and Currency on hand amounted to P 1,450.

Question: What is the proper amount to be reported on Finley's statement of financial position for cash at December 31, 2020?