Cash and Cash Equivalents

ACC 124 – CONCEPTUAL FRAMEWORK AND INTERMEDIATE ACCOUNTING
CASH AND CASH EQUIVALENTS
1. At December 31, 2019, JG CORP. reported the following as composition of its Cash and Cash
Equivalents line item in its Statement of Financial position:
Cash on hand P 300,000

Cash in bank – PIGGY BANK 400,000
Cash in bank – COW BANK (30,000)
Manager’s check 50,000
Time deposit – PIGGY BANK 2,000,000
Postage stamps 10,0000
Escrow deposit 100,000
Demand deposit – CHICKEN BANK 300,000
Payroll account – CHICKEN BANK 500,000
Treasury Note 50,000
Treasury shares 90,000
Treasury bills purchased 12/25/2019 maturing 120,000
4/1/2020
Cash in bank – SNAKE BANK 300,000
Cash in bank – ESNEK BANK 150,000
Money market placement due 6/2/2020 100,000
Money market placement due 2/5/2020 80,000
Revolving fund 40,000
Contingency fund 30,000
Payroll fund 100,000
Dividend fund 40,000
Fund for acquisition of PPE 200,000
Unused credit line 100,000
Post-dated check, customer 60,000
IOUs from employees 90,000
Foreign bank account – unrestricted (in 200,000
equivalent pesos)
Petty cash fund 50,000
Traveler’s check 200,000
Additional information:
(a) Accounts payable of P16, 400 was paid in January 2020. The payments on which a P1,400 cash
discount has been taken were recorded on cash on hand in the December 31, 2019.
(b) Drawn against cash in PIGGY bank were check amounting to P40,000 dated December 26, 2019 still
on one of the drawer of the accountant in the treasury department.
(c) Demand deposit to CHICKEN bank is restricted for the company’s plant expansion next year.
(d) Cash in bank in SNAKE bank includes an informal compensating balance of P40,000 for long-term
borrowing arrangement
(e) Cash in bank in ESNEK bank includes restricted compensating balance of P50,000 for short-term
borrowing arrangement.
(f) The petty cash fund included unreplenished December 2019 petty cash expense vouchers for P15,000
REQUIREMENTS:
(1) Determine the amount of cash for the year ended 2019
(2) How much is to be reported as Cash and cash equivalents in the Statement of Financial Position as of
December 31, 2019?
BANK RECONCILIATION
2. The following information was provided by RAIGOR INC. in preparing its current month's bank reconciliation:
Balance per bank statement 9/30/2019 2,000,000

Outstanding checks (With certified check of P 100,000) 400,000
Deposit placed in the bank's night depository on 600,000
September 30
Bank service charge 10,000
Proceeds of bank loan not recorded by RAIGOR 100,000
Customer's check charged by the bank due to lack of 20,000
counter signature
Amount erroneously credited by bank to RAIGORs 50,000
account
A supplier check for P10,000 was incorrectly recorded 100,000
by RAIGOR as
Notes collected by the bank for RAIGOR 150,000
A customer check for PI 50,000 was incorrectly 15,000
recorder by RAIGOR as
NSF checks not recorded on books nor redeposited 25,000
Check of RIGID CORP. charged by the bank to RAIGOR 60,000
INC.
Deposit of RAIGOR INC. credited by the bank to 100,000
RAIGEE INC.
Check issued by RAIGOR INC. charged by the bank to 40,000
RAINOR CORP.
REQUIREMENT(S):
(1) How much is the adjusted cash in bank balance for the month of September?
(2) What is the unadjusted balance per book at the end of September?
PROOF OF CASH
3. MOGUL CORP. provided the following bank reconciliation on August 31:

Balance per bank statement P 1,500,000
Deposits outstanding 300,000
Checks outstanding (180,000)
Errors 70,000
Adjusted cash balance P 1,690,000
Balance per ledger P 1,575,000

Credit Memos 250,000
NSF Checks not recorded nor (90,000)
redeposited
Bank service charge (5,000)
Errors (40,000)
Adjusted cash balance P 1,690,000
Other Information pertaining to August:
• Book errors comprised an over-recording Of customer check of P 100,000 and over-recording of
disbursement of P60,000.
• Bank error was actually an erroneous debit in the account of the company.
The following are data pertaining to September:

Receipts per ledger 1,600,000
Disbursements per ledger 700,000
Credit Memos 150,000
NSF Checks redeposited immediately 50,000
NSF Checks not recorded nor redeposited 40,000
Outstanding Checks 100,000
Deposit in Transit 280,000
Bank Service Charges 10,000
Error in recording customer check amounting to P 10,000
100,000 as
Deposit of MOGAL CORP. credited to company's 110,000
account
Check issued by MOGUL charged by the bank to 60,000
MIGUL
Customer check amounting to 15,000 recorded by 150,000
MOGUL as
Erroneous charge by the bank to MOGUL’s account 40,000
amounting to
REQUIREMENT(S): Compute for the following:
(a) Adjusted cash in bank balance at the end of August
(b) Adjusted cash receipts of September
(c) Adjusted cash disbursements of September
(d) Adjusted cash in bank balance at the end of September
(e) Unadjusted balance per bank statement for September
(f) Unadjusted bank receipts of September
(g) Unadjusted bank disbursements of September

Cash and Cash Equivalents

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ACC 124 – CONCEPTUAL FRAMEWORK AND INTERMEDIATE ACCOUNTING

CASH AND CASH EQUIVALENTS

Cash on hand P 300,000

Balance per bank statement 9/30/2019 2,000,000

3. MOGUL CORP. provided the following bank reconciliation on August 31:

Balance per ledger P 1,575,000

The following are data pertaining to September:

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