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P ro bl em 1 .. 1
R~quirement I
- A«ounts ~ivable Cash in bank
b. Cash in bank Ac-ct)tml:. pnynbte
c. Cash in bank AttounlS payable
d. Accounts. rectl,•able
Cash
Requirement 2
Cash ,n b3nk per book
SOL UTI ON MANUAL In termediate Accounting Valix Peralta Valix VOL U ME ONE - 201 9 Edition
C HAPT ER I
Cu5tomcr check o ul st,mdmg for 18 months Undclivcn.--d check Poscdated cheek delivered Collection on January 2020recorded on December 31, 2019 Adj~ted ca~h in bank Time deposit 30 daY Pcny cash fund Tot.1 1 cash and cash cquivalcn
R e(t uircmenl 3
( 200,()(IO)
100, { 450 ()()()) 2.700, 1,000, 20000 3 Z?OQQQ
I
Tbt money ma.di:.tt pla~men1 ol' P2,000,000 due on June 30. 2020 shoul d br separately shown as curren.t asset. The sinking tUnd ot'Pl ,500,000 i$ pn..-sentOO as noncurrc nl nsset.
P ro blem 1- 2
R ec.t uircmcnt I
a. Accounts n.'C-tivable Cos.hon lund
b. Exponscs
Rcce i,·.1ble from employee r,t.1ty cash fund
Requirement 2
C_.h (In h:and Posldatcd check Adjush."d t.-ash on hand
Petty cash fu nd UN'C 1 ,kmshcd pc11y cash cx r1cnscs Po,-ttb tcd c,npt.oyec chcdt: Adjusicd petty cash
C..shon hood Pcuy cash fond Secumy Bank cum..-n 1 accoum
P N:8 CUrTCftl moun •
Bond sm lnng fund ,.ocal ca\ih and cash equfr'llcn1,
Jh:q uirement 3
•Titt BSP 120-day lrt3Swy bdl of P3.000.000 ,s sepasat~I>• shown as current asset.
•The overdraft in 800 currc:,nt ocrount of P200.000 is shown as cum:nt llability.
1.000.
I 150000)
$CiO(M)Q 50, (10,000) ( <()00) ~ 850,
2.000. I.S00, b~()Ofl()() eiu ~ooo
•11tc BPI Time d cpoJ.1t of Pl ,000.000 is s;ho'i'n as noncurrent irwestmcnt b~o~ it is •~ trifled for l:tnd acquisition.
P robkm l •l
Requirement 1
a. Accoums tteeivable ( I 00.000 + 150,000)
Cas h on hand
b. Advances lo cmplo)'t''-'S
Cash shon or over
PC1ty cosh fund
c. Cash ;n bank (200,000 + 300.000) Accounts ~ •)'".Ible
Requlremen1 2
Cash on hand NSF cui.tom-:r ch1..-ck Postd:ucd custnn·liCr died Adjus1ed or, hand
Currency and coins Check drawn P-1).tble lo pdty cashier AdjuSlcd pcuycash
Cash in bink Unde:liven."\I company check Postd ated company ch~k dd i, -.er cd Adjusted cash iu b11nk
Cash on hand Peny cas.h fund Cash in bank So, ing dcp,mt
Toca l cash
S.
( 100,000) ( JSQ IJQO)
ZSOQQQ
llil!!!l
liJljl!l
4,000, 200, l OQ{l(I() 11QQQQQ
4 .S00, ., 0 () 0000 728 '
Pro blem 1 -
fl""tllllting Fund Sy8ttro J.mprest Fund System Pc:CI) cult f\lnd I0.000 Pc:UyCil~bfund 10, C~sh in ba.n.k 1 0. 000 C-i1:sh1obmk 10. Poi;sa,c I.SO 0 S1,lppb(:) J, 000
l. (^) No<"")'
P<tt} <:~ fw,.I 4,
J lrultfP(lrtllllOl'I^ 1,^000 J (^) "" e"")' Ai."'fOU 11 u. l'.l)"lh lt J.JOO P<rty cash ti.ind 4.
- P~h') cafoh fi.w l 19.00fl - Pmy^ Clilh^ fu1MI^ 10, C.asb inblnk 19 .000 Pos1agc I.SOO S11ppbc.s 3. 000 Trani,;p(ll'lllli fm 1, At'<'OOOt $ p3yabli: 3.SOO Cish 1 ft b.lnk 19 , 000
Problem 1•
Fhacluatln.i; Fund SyJtc:m TmprcM Fund Sy•lffl'I M a) · 2 1 •eay C1$h i\md 10.000 i.\b y Pwy cash tl.md 10,0 00 Cash i 111 btwlk 1 0. 000 Ca!!h WI bani< 10, 29 Potlt11,-: 1. 000 29 l\lQl,u,~ 1, Supplies (^) 3.000 s,w1;,, (^) 3. T rw,nsponadoo 2.1 00 Tninsponation 2.SOO Mi wdl1u11Nt 1 a: c:,p.'fli.t 1.$0(1 (^) M$."Cll.1J~IU¥ C:\P,.'fl~ 1.l- Pn1y(aslil'unJ (^) 8.0 00 Pmyaish fund (^) 8. 000 Pi:u y aJ.h rm.ct (^) •.ooo Cash ill bad: 8.
June 30 s..,.,,;,,^ 2. ' ""' JO
Suppl ic~ 2. A«OUMS piyabk 1.00 0 AttOlWltS payable 1. i ,-,1pon atiun (^) 1.000 Tran1op01111t 1 on 1. Pcityta1,h fu,.J 4,000 (^) Peuy tail:h fulld 4, 000
J uly I l'clly 011h fund 4 , s,,,,,.... (^) 2, P~ag,: 1 , T n11Ufl{ll'Uli cm 1, To rc-cl'k die 2<IJ 1Ht 1 nmt ftbck an Jw~ JO.
Ju ly 1$ P^ ctty^ ca!ih^ f\i^ ,wl^ 5,000 J uly IS s,w1... 1. Suppli« 3.SOO l'Oll(ll,te $ 00 PO$t.igc I.SO 0 Transponaiion ;oo 1 ..-..$pOflltbOn I.SOO M1:i;~lllnc()t»~ll petl:)I: (^) lOO l\fiwclb n l'Ol,ll, <lll)(fl,:50: $00 P\luy Qi,h ru,iJ l, Cash il'I lwlk 12. Pt1l )' ( llsll ftlDJ 12 , Cashin bank 12.
Rc qulrt me nt I
- P ro bl em 1-
- Nov. 2 Peny c,ash fond 10. - Cash m bank 10. - 30 Posw.gc 2. - Supplies S. - Pcny cash rund 10. - Cash in b.lnk 17,
- Oec. 3 1 Postage 3, - Supplies 4,() - Specfol d cpoi,,it 2, - Petty cash fund 9,
- Jan. Pc1ty cash fund 9, - Postage 3, - Suppl oes 4. - Special deposit 2. - 31 Post.'lOW S. 2 Notmry - Supplies 6. - Accounts p,a;yab le 7. - Cash sllOrL or over 1. - Cbh m bank 19.
- Problem 1-
- 01..-c. P1;ny c,.sh fund 10, - Cuh in bank 10,
- 20 Oismbu11on eos1s S. - Miscdl:incous ~~pcn.<1cs 2, - Equi 1 >mcm 2, - Cash i.n bank 9.
- 31 Receivable from employ« 2. - Transponation Distribution costs 1 .SOO - Petty c.as.b IW'ld 4.
- Jan. Petty cash fund 4. - Rttel-able from emplo)'W!e 2. - Ois1rabu 1ton ooi.ts 1, - T ranspo1131ion - 31 Oisuibution costs 2. IS No entry - Admimstmli\t expenses 2, - Transportation 1, - Pun:hascs l, - Cash in bank 6,
P ro bl em 1-
Quesdon 1 Answt:r 8
Ch<ckbool< b.ll•ncc Cu.~lomcr pouthrtcd check crroni.:ou." IYincluded ,n c-hcckbook balnncc Unddivcn..·•d check payable to supplier 1-\ dj us1ed cash in bank
Q uestion 2 Answer A
Cash m b3nk Cuh on h:md - undcpOIJtcd collec11on
Pcny rosh fund (S,000 • 40,000)
l 'orol cash
4,000, ( 200,0<lO)
40 0QQQ
4100000
4.200. 400, ,,~ooo 464 ' 000
CHAPTER 2
P roblem 2-
Bakrncc per book 65, 1 \dd : CM for note collected 10/IOO 1' ocn l 95,
Less: OM for sen·ice charge ...2Jlj!jl
Adj 1.med book balance (^) 2lJl!!!!
8 afo ncc per b.1nk 108.
Add: Ocposi1 in transit ....82.£!
Toca l 188.
Lns: Ou t.seand ing checks: No. I02 15, 10; (^) 30. (^107) ~ ~ Adj us1cd bank balance (^) ..2lJWO
Adjus:ting entries:
I. Cash in bank 30, Note rcccivnble 30,
- tlank Ser\fire charge 2, Cas h in ban k 2,
Problem 1-
Balance per book 11 0.
Add: CM for n~e ool lected (^) ~ Toca! 155. Les.Ii: OM for seNicec~g.c 5, NSF check 10, Book error (52,000 - 25.000) (^) lLl!22 ..:IZ.!l!l!l Adjwi1ed book b:dancc J..LlJljjjl
Bafo ncc per ba nk 135.
A dd: Dcposi1 in mmsit ~.
l::.rron..--ous bank debu (^) ...li12!! ~ ,...., (^) 203, Les.,;: (^) Ou1.s1anding ch'-.-cks: No. 770 20, 775 30,
777 ~ ...2l!Jl9!l
Adj usted bank balrincc (^) .IJ.lJljlll
Adjusting encries:
I , Cash in bank 45,
Bank service charge 5.
Nole receivable (^50).
- Bank 54::rvicc c:-h C1rgc 5, Acco uo ts n:ccivablc 10, A ccoun ts payable (^) 27. Cas h m bank 42.
P ro bkm 2-
a. nalarw.-e 1 :,cr book - Ap nl J- C'ltd i1 memo fi)r note oolloc1cd Outsl.tnding checks:
Total
No. 1331 1332 1334 1335
Less: Bank sen'icc cbarge
NS~ chock Undc- pos11ed collect1ons Balance Iler 1 wtk April 30
b. Adj usdng cnules
I. Cash in bank Note rcc:civ11blc
2. Bant service charg':
Accounts receivable Cash tn bank
<, Bal111« per book - Apri l 30
CM fo r note collected Bank scn•ice charge NSF check Adj usted c;uh in bank
Pro blem 2-
a. Balance per bank Add: Undeposned collecuons NSF ch,-.:k
Tolal
DM fbr sorcty dc 1 l0S il Unrecorded chcc:k
Less: Chooks oul5tanding: Ovi:r.natcmcnt of <.-o.:d ito r'a c heck Undcrs1a1cment of co~omcr·s check Balance per book
b. Adj u sti ng cotric."3:
I. C ash tn bank A CCOI.Ul b payable A ccou nts r1.•cd ' 11 b le
- Accounts n.-ceivablc l) ank scl'Vtce ch arge A ccounts p~ 1 )'3ble
Cash in 00.nk
-1Jl.!!m
lli.!lll!!
.w.J.l2!I
1~00()()
S,
JO
140 0QQ
100000 1000099
25 000 ) 1 IJOOOO
noooo 4 ,230,
! IOQ (l()()
3 13Q QQQ
c. Balance per book Oversuuement ofc1'tditor's c-heck UnderStott1m··, 11 of cu.uomcr•~ ch<.-d Tollll less: NSF cbc<k 0>,11 for safety bo, Unrecord ed chccli: Adjusted book baJnnc;c
£^1 ro blcm. 2-
Bsfoncc per book Add: Procwds of blink kx, Nott' collccltd by bani: T oca!
Less: Service charge
Customer's check charged back 1-\dj llSltd book b3111nce
Bafo ncc per ba nk Add: Oeposil m lr.msi t lncorroc1 dcposi Frroncous bank ch.1rs.c Erroneous debit nltnlO Toca! Lc:ss: Outsta1ldi1lg ctk.--cks E1roneous bank cl.-< 1 \ dju.sicd bank b;afo ncc
Adj usdng entries:
I. Casb in bonk
Bank service charge
Interest expense (60.000 x 1/6) Prepa id mtCrc!U c-xpcnsc
L<>an pay: 1 bk, (9 4 0.000/94%)
l\ott rece ivab le
Interest mcome
- Bank scr\lice ch qc Accoun ts receivable
Ca.sh m bank
Problem 2-
Rllfa ncc per book Add: Proa,cd.s of bank loo n Toe.i i Lcs,s; Understatement ofcheck in pGym<:nt of acooum (200.000 - 20.000)
Pcny cash rw 1 d
1 \ dj u.stcd book balance
ll
ISQggQ
lllJlil!l 181:!ilSla 3499099
41:\000 (^) I 1z~ ooo
~ f1Q!lilQ 4~1~WlU
2lllUlOO 21,^ !lllQ
lll2Jlll!I 2QQ!l
101snoo
:\ 1 '
...J.QJlllj! (^1) 9Q!!ilfl :\ l'6!WQ
P ro b l<m l - 12
Ques:cton I AnJ wer C
QuestJon 2 An ...,wc-.r C
Bafan~ per book NO(e collected by bank Book mor (200,000 20,000) NSF chc-dc Bank 5en·icc charge Adjus1ed book b31ance
P roblem 2 .. 13
Question I Answer A
B>loncc per book (SQUEEZE) Add: Pro=>ds of bank loo n Prc,,cxcds ofnocc collex:tcd Toca l Les.,: Bank 5crvicc charge DAIF <hcctc Adjusted book balance
Qucition 2 A n.5wu B
Balon« per bank (SQUEEZE) 1-\ dd: Depos it in 1rnnsit Bank error (200.000 20.0Cill) Tocal Less: Ou1standing cheeks (750,0(il) - 50,0(il)) AdJu.sted bank bal.:l nce
P ro b km l - 14
Q uesclon I An swer A
Bala.nee pet bank slateinent
De-po.sit in transit 0utsl4ttding ch t.."C'kS (1,500,000 200,000) Bank error AdjlL'iled bank balance
Quescton 2 A nsw er A
El>krncc per led&,;,r (SQUEEZE) NO(e: collcctt.'d by bank Service charge NSF<hcd<s
Book error
1\ dj ustcd book balance
Question 3 Aosw« A
Cash 1n bank Currency and coins on hand Peuy cash rund Torol rush
illJlOO
S. ....lD..
450,
.l.8ll.!lOO
000 180.0(il)) 250 ,IKill) ( 20 000) 2909999
9JS !!!l!l 3.055.
~aoo i QQQQQQ
3.070.
6JQ~HI 3.700.
ZQ
, QUQWJQ
8.000. 1,200, ( 1, 300 ,000) ( I SO 000) 7 259999
7.070, 1,100, ( 20,000)
I 00 !!!l!l ZU OQQO
7,750, 900,0(il) sonoo
&ZQQQQQ
P robkm 2-1S
Qucsdon l Answer A
Gala nte per bank -Ju ly I
Deposits
Checks pr<,CC:S:,cd S1..-rvice eh:wg.c NSF chc:<:k Monl hl y loan pa )menl Bafane<.: per bank July 3 l
Question 2 A nswn B
Bal.inc.: per b: 111 k July I
Deposil in u-ansit
Outstand ing t heck Bank ~-rror - oven,tatement of d1s burscroi.:nl Adjusted bank balance
Correct amount of disbursement
Rccorck,d by bank Bank error - ovcrslatcmc-m of disbursement
Question 3 Answer C
B•ku>te per ledger July 31 (SQUEEZE) Servi ce chari c
NSF d!c:<:k
Book error - understatement of collcchon Mo nthly Soan p;1)mcn 1 Adjusted book bala nce
Corr« t amoun 1 of accounts receivable collc..'Cfcd Recorded by d l.' po!l itor Book error - undcrst:ucmcnt orcollection
550, 1.800, ( 1 ,-1-00,{IOO) ( 30.000) ( 120.000) ( 100 000)
ZQQQQQ
70 0,
( 150,000) l1Q.OOjl mlll!!l 30, 300 000 m!WII
990, ( 30.000)
(100.000)
..lJ!l!.!!
~
....2l!Jl!l!!
J..Wljljl
Computation of outstauding checks - July 31
OutsUmding checks. June 30 J-\ dd: Chcc:ki dmwn by 00m,xrn y llurin.g July:
8ook=<ii1'i
T oe.ii
Less: June debit memos for
NSF chect
$4.._-r,.• icc ch:i ,v
Less: Checks pa id b)^1 ban k during J ul y. Bank debils LC'~U; JuJy service charge Out.stand ing ch t..-ck$, Jul)' 31
Pro blem 3-
RKonclllnLlon - October 31
J-\ dj us1ed book balance
Rank bala m.-e
A dd : Dcposh m trnnsil
T oc;;i l l..cs.5: OutsC;md ing checks Adj u.stcd OOnlc b;1fo nce
RcconciUntfon - November 30
Oook bal ance Add: Un de~ttue-1nen1 ofc-0lkc11on from cu~tom er T ooil l..cs$; Un dc:TSllllcmcnl of check d isburs,cmcnl
Adj usted book b:dancc
Bank ba lance 1 \ dd: Dcposi1 in cr.,ns it
Check of Susan Company charged in e rror
Toca! Lc$S: Oui.stnnding dK'Clo:$ OcPQ$i1 or SuSM Comrxiny 1,."rtoncOU$I)' c:.ttdi h."<i 1 \ djus1cd bank balance
Ad j1,lS:ling entries - N o vcm~r JO
I. Cash in bank Aceoonts receivable
Accounts pay;ablc Cash in bank
___j.Qll!!
3.600.
10➔ 000
2.500. 000 I 000
~
4()0,
.lJll!Jlll!l
000
4.JS0.
' 499QQQ
J 8Sl 000
&!Jlil!l
.1ill!J!OO
.lJll!.!!m
~
1.000, ' )QQ2Q 1,090, 220000 820000
l2Qggs}
1.)20. 000
~QQ!!!!Q
90,
Cornpuciltlon or ou1surndlng checks - October 31
O\Jlstan41ng ch<ck$ - O«ot,e, 31 (SQUEEZE) 100.
Add: Checks issued by deposi1or. Book disburscmcntll 1,800, Undcrstalcrncnt of chctk p.iid (^) 22Q !!l!2 222Q!!l! T oco! 2.170. Les.<: Checks paid by bank: 8a 1 1k dasburscm;;.• ins (^) 1.970. Clu~ck of Su.san Camp:1ny chaft:,ot-d m eftor ( ' !Ill 221!) I 7221100
Outstanding ch ecks No\•c-n1ber JO :U)Q !lSlll
Compucatlo n or deposit ln tra nsit - November 30
Deposit in transit - October 3 1 (^) 300. Add: Cash rctciptS deposilcd during November: Book rccc1p1S 2.200, Undcrst1.1tcmc.-nl of collcclion from customer (^) 2Q !!l!2 2 29Q !W
Toco! 2.590.
Less: Deposits credited by bank during November:
B:utk receip 1 s 2.500.
IJeposit orSus: 111 Comp any erroneouslycred itl'd l!lll Q!,lg) ,^ ~QQ1H2Q
Ocpos11 in trans-it No<cmbcr30 12QiW!I
Problem 3-l
•• R^ tconclli^ adon^ on^ July^ I
Adjust~d book bafoncc (^) J ' 20!lil
Bank balance 1.720, Add: Deposit in U'! 1 nsi1 500/IOO TMal 2,220, Less: Outstanding chccb 2~Q !!l! Adjus«d bank balaoo: (^) J 2Z!l!WQ
R cc:o nc:llfatlo n o n J u ly 31
Book ba l!mtal' 470, Add: Nott' collt.'CkJ by lx mk l ~ Tmal 1 ,970, Less: Bank St.'T'' i~ charge ;zg !lll!l Adjus.tt.·d book b3fancc (^) J 2~12!WO
8ank balance 2,700, Add: Depos it in transn (^) ~n2~;in Total 3.100. Leu: Outstanding checks.: Ch ttk ti 107 650. (^108) .iJll!Jl!lll I I iQ !lll!l AdjuS.tt.·d bank balant.-c (^) J 2~12!WO
b, Adjusting entries o n July 31
I. Cash m bank U00. Note rcocivablc 1.500,
- Oan.k $CIVl<.'I! charge 20. Cash in bank 20,
P ro blem l·S
March 3 1 R ttefpts Db burlk':ml!nti Aprll 30
Book balincc (^) 200.000 800.000 720.000 (^280). Noce coll ~t¢d by Nnk March 60,0()0^ (^ 60,000) Apnl 1 00, 000 100,00 0 Scrvict: dmgc. Miu-ch (^) ( MOO) 3,000) Ar ni 2,000^ (^ 2,000) NSf: check M:arch l 20,0001 ( !0,000) April 30,000 ( 30,000) Dq,osit in transit March 31 ( 11 0,000) 80, April 30 (:L~,000) (220,000) OuUl tndina checks March 31 178 .000 178, AprilJO (.lllJl!l2}^ mJ!llll U.an.k OO hUI('~ (^) ~ ~ l.l!!S ~
Adj ll-)c"ting entry
Bank sen ice charge 10,
AccounL~ receivable 50, N()(c n:ceivablc 10 0, Cash in OO nk 160.
P ro blem J.-
J uly 31 R «dpu Obb ursem~nts A u gwu 31
llankb:tlancc 800.000 ; ,000.000 },940.000 1.860. Book error on tolk ..:don ( 180,000) ( IK0,000) Book crroron payment 540 ,000) 540,
8,a.nk mw on deposit 200,000) 200.000)
Bank error on payment (^) .ioo.0001 .ioo.ooo NSF checl: July 100,000 100, Augus 1 50,000) 50, 0()() NOie l"C)ll tttcd hy bonk: July ( 200.000) 20<), Augu.,;t 30(1,000) 3()0,000) Oeposn io 1rarrs1r. July 600,000 600,000) Aui'J$ 1 480,000^ 480. Oulstanding checks: Jul)' 100,000)^ ( 100,000) A u gu1' (^1) --- f:~il 002 ( (^) ~.1f!il Book balance (^) I '®000 :! :JQIJ 11W ' SlQ llS2Q ,^ Qlla{WQ
P ro blem 3 .. 7
No', )0 Receipts .Disbursements o«. 31
1 3ook balance 2,0J2.000 2.56li,OOO 1,44-0,000^ J,1(,(1, Bank scrv1cc charge No, ~mbcr JO 2,0\10) l,000) 0c<:f'mbcr JI 4,000 4,000) Collection of note November 30 ( 200,000 200, lkccm~r JI J OO OOO) (^) I 300000)
Adju11kd book bul~n tc I a,g;gQg ,~,~,~^ t 44 ' 000 2 8S6~Q
Bank OO l an-:c (^) 1.890.000 2.090.000 1,080.000 2,900, Ouut.andu.'lg c~-cks No,--embcr JO (^18 0.000) 180,000) Oc«mbtr (^31) 592.000 ( 592.000) 0cposl( in lrtUlSll N('l'tmbcr JO ~0.000 80,000) l1rcttmbtr 31 -193,000 498. Chccl: clTQfleously chargtd by bank l'lo"cmbcr JO 4 0.000 40,000) Octtmbe:r 3 I (^) wnom :iil !lflO Adjusted lxtnk balance 1 aJngug (^) ' ;;lf:8 , 111 144 ' 992 , Z£~ti 111n
Adjusting e:ncry
8 :Utk SCI'\ ice charge 4. 000
Note l'.'Ceivablc 300,
Cash in bonk 30-1.
