Cash And Receivables
Practical Accounting 1
Cash and Receivables
-1.
Assume the following facts for Kurt Company: the month-end bank statement shows a balance of P40,000: outstanding checks totaled P2,000; a deposit of P8,000 is in transit at month-end; and a check for Pf400 was erroneously charged against the account by the bank. What is the correct cash balance at the end of the month?
a.
P33,600
c.
P45,600
b.
P34,400
d.
P46,400
2.
The August 31 bank statement of K, Inc. showed a balance of P113,000. Deduction in arriving at this amount was a customer's NSF check for P2,400 that had been returned. K had received no prior notice concerning this check. In addition to the bank statement, other records showed there were deposits in transit totaling P17,200 and that outstanding checks totaled P10,800. What is the cash balance per books at August 31 (prior to adjustments)?
a.
P115,400
c.
P119,400
b.
P117,000
d.
P121,800
3.
In preparing its bank reconciliation for the month of February, James Company has available the following information:
Balance per bank statement, February 28
P 180,250
Deposit in transit, February 28
31,250
Outstanding checks, February 28
28,750
Check erroneously deducted by bank from Nantz account,
1,250
February 10
Bank service charges for February
250
What is the correct cash balance at February 28?
a.
P181,250
c.
b.
P181,500
d.
P182,750
P184,000
4.
Jackson Company had the following cash balances at December 31, 2002:
Cash in banks
P375,000
Petty cash funds (all funds were reimbursed on Dec. 31, 2002
5,000
Cash restricted for additions to plant (expected to be disbursed in
2003)
500,000
Cash in banks includes P125,000 of compensating balances against short-term borrowing arrangements at December 31, 2002. The compensating balances are legally restricted as to withdrawal by Jackson. In the current asset section of Jackson's December 31, 2002, balance sheet, what total amount should be reported as Cash?
a.
P755,000
c.
P380,000
b.
P375,000
d.
P255,000
5.
Philman
Cash and Receivables
-1.
Assume the following facts for Kurt Company: the month-end bank statement shows a balance of P40,000: outstanding checks totaled P2,000; a deposit of P8,000 is in transit at month-end; and a check for Pf400 was erroneously charged against the account by the bank. What is the correct cash balance at the end of the month?
a.
P33,600
c.
P45,600
b.
P34,400
d.
P46,400
2.
The August 31 bank statement of K, Inc. showed a balance of P113,000. Deduction in arriving at this amount was a customer's NSF check for P2,400 that had been returned. K had received no prior notice concerning this check. In addition to the bank statement, other records showed there were deposits in transit totaling P17,200 and that outstanding checks totaled P10,800. What is the cash balance per books at August 31 (prior to adjustments)?
a.
P115,400
c.
P119,400
b.
P117,000
d.
P121,800
3.
In preparing its bank reconciliation for the month of February, James Company has available the following information:
Balance per bank statement, February 28
P 180,250
Deposit in transit, February 28
31,250
Outstanding checks, February 28
28,750
Check erroneously deducted by bank from Nantz account,
1,250
February 10
Bank service charges for February
250
What is the correct cash balance at February 28?
a.
P181,250
c.
b.
P181,500
d.
P182,750
P184,000
4.
Jackson Company had the following cash balances at December 31, 2002:
Cash in banks
P375,000
Petty cash funds (all funds were reimbursed on Dec. 31, 2002
5,000
Cash restricted for additions to plant (expected to be disbursed in
2003)
500,000
Cash in banks includes P125,000 of compensating balances against short-term borrowing arrangements at December 31, 2002. The compensating balances are legally restricted as to withdrawal by Jackson. In the current asset section of Jackson's December 31, 2002, balance sheet, what total amount should be reported as Cash?
a.
P755,000
c.
P380,000
b.
P375,000
d.
P255,000
5.
Philman