Scribd
Upload
17 views2 pages

CAEC 10 Activity No. 1

Uploaded by

Tesorero, Jeyah T.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
17 views2 pages

CAEC 10 Activity No. 1

Uploaded by

Tesorero, Jeyah T.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Aklan Catholic College

Archbishop Gabriel M. Reyes St.


5600 Kalibo, Aklan, Philippines
Tel. Nos.: (036)268-4152; 268-9171
Fax No.: (036)268-4010
Website: http://www.acc.edu.ph
E-mail Add: [email protected]

CAEC 10 – Intermediate Accounting Part 1

Activity no. 1

Problem no. 1 – Cash and Cash Equivalents

Argentina Company reported the following accounts on December 31, 2024:

Cash on hand 1,000,000


Petty cash fund 50,000
Security Bank current account 2,000,000
PNB current account 1,500,000
BDO current account (overdraft) (200,000)
BSP treasury bill – 120 days 3,000,000
BPI time deposit – 90 days 2,000,000
Bond sinking fund 2,500,000

o The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000.
o The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check for
P5,000 dated January 2025.
o The BPI time deposit is set aside for acquisition of land to be made in early January 2025.
o The bond sinking fund is set aside for payment of bonds payable due December 31, 2025.

Required:
a. Prepare adjusting entries on December 31, 2024.
b. Compute the total amount of cash.
c. Compute the total amount of cash and cash equivalents.

Problem no. 2 – Bank Reconciliation

Apathy Company provided the following information:

Apathy Company (Bank Statement)

Date Check No. Withdrawal Deposits Balance


Dec. 2 100,000 100,000
18 104 10,000 90,000
20 101 5,000 85,000
22 106 25,000 60,000
27 50,000 110,000
29 10,000 120,000
29 103 40,000 80,000
29 CM 30,000 110,000
31 DM - Service Charge 2,000 108,000
FIRST BANK (Book)

Dec. 1 Deposit 100,000 Dec. 4 Check No. 101 5,000


21 Deposit 50,000 6 Check No. 102 15,000
27 Deposit 10,000 8 Check No. 103 40,000
31 Deposit 80,000 8 Check No. 104 10,000
10 Check No. 105 30,000
14 Check No. 106 25,000
28 Check No. 107 50,000

The credit made by the bank on December 29 represents the proceeds of a note received from a customer which
was given to the bank for collection by the entity on December 26.

Required:
a. Prepare a bank reconciliation using adjusted balance method.
b. Prepare adjusting entries.

Problem no. 3 – Proof of Cash

Efficient Company showed the following information:

Cash in bank balance, March 31 200,000


Book credits for April 720,000
Book debits for April 800,000

Bank statement balance, March 31 330,000


Bank debits 530,000
Bank credit 700,000

Note collected by bank


March 60,000
April 100,000

Service charge
March 8,000
April 2,000

NSF check
March 20,000
April 30,000

Deposit in transit
March 31 80,000
April 30 220,000

Outstanding checks
March 31 178,000
April 30 372,000

Required: Prepare a proof of cash for the month of April following the adjusted balance method.

-END-

You might also like