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Cash and Cash Equivalents Quiz

Jell Company had a cash and cash equivalents balance of P5,935,000 on its balance sheet as of December 31, 2018. An examination of the cash and cash equivalents account revealed balances in various accounts totaling P5,935,000, including bank accounts, treasury notes and bills, and petty cash funds. Additional notes provided details on certain accounts, such as expected recovery from a closed bank account and unreplenished petty cash vouchers.

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582 views2 pages

Cash and Cash Equivalents Quiz

Jell Company had a cash and cash equivalents balance of P5,935,000 on its balance sheet as of December 31, 2018. An examination of the cash and cash equivalents account revealed balances in various accounts totaling P5,935,000, including bank accounts, treasury notes and bills, and petty cash funds. Additional notes provided details on certain accounts, such as expected recovery from a closed bank account and unreplenished petty cash vouchers.

Uploaded by

MarkJoven Bergantin
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The cash and cash equivalents account in the ledger of Jell Company had a balance of

P5,935,000 at  December 31, 2018. An examination of the account, however, disclosed
the following;
Current account at BDO                                                             P2,000,000
Current account at BPI                                                                   (100,000)
Payroll account                                                                                500,000
Savings account in Union Bank  - Note 1                                     1,000,000
Treasury warrants                                                                            200,000
Treasury note, due November 30, 2020                                          400,000
Change fund                                                                                      10,000
Credit memo from a vendor for a purchase return                             20,000
Traveler’s check                                                                                 50,000
Customer’s check returned by the bank marked DAIF                      15,000
Money order                                                                                       30,000
Petty cash fund - Note 2                                                                     10,000
Treasury note, due 2//28/19 – Note 3                                               200,000
Treasury bills, due 1/31/19 – Note 4                                                 300,000
Cash sinking fund                                                                             500,000
Preferred Redemption fund                                                              800,000
Additional information;
1.     Union Bank was closed two year ago. The company expects to recover only P0.60
for every peso deposited.
2.     This amount includes unreplenished vouchers totaling P7,000 as if December 31,
2018.
3.     This is a two year treasury note acquired on December 31, 2018.
4.     This is a 180 – day treasury bill acquired on July 1, 2018.
Required: How much  Jell report as cash and cash equivalents on its December 31, 2018 balance sheet?

You are the auditor of EB, Inc. You obtained the bank statement and paid checks
directly from the bank. In reconciling the bank balance at December 31, 2018, you
observed the following facts;
1 Balance per general ledger, 12/31/18       28,064
2 Balance per bank statement. 12/31/18       11,046
3 Outstanding checks, 12/31/18 (including a certified check of P15,000)       45,500
4 Receipts of 12/31/18, deposited 1/2/19       22,482
Proceeds of bank loan, 12/31/18, discounted for 90 days at 10% per
5       48,750
year, Omitted from records
6 Deposit of 12/23/18, omitted from the bank statement       12,871
7 Check 143 of BE, Inc. charged by the bank in error to EB, Inc.        7,200
8 Deposit of AB, Inc. credited in error to EB, Inc. on 12/06/18        8,755
9 Debit memo for the cost of a checkbook           150
1 Check of EB, Inc. in payment of accounts payable had been recorded
      12,300
0 by the Bookkeeper as P1,230, the correct amount is
1 The ledger account for Cash in bank included petty cash fund
       4,200
1 amounting to
Proceeds from cash sales for July 18 were stolen. The company
1 expects to recover this amount from the insurance company. The
      15,700
2 cash receipts were recorded in the books, but no entry was made for
the loss
1 The company’s account was charged on December 26 for a
      31,350
3 customer’s Uncollectible check amounting to
 
Prepare a bank reconciliation statement to arrive at the adjusted balances at December
31, 2018.
1.     Adjusting journal entries as of December 31, 2018. Submit it to my inbox using excel
format
2.  Provide the adjusted balance of cash and cash equivalents as your answer below.

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