Berman Corporation had the following transactions in its first year of operations:

Sales (90 percent collected in the first year) ....... P750,000

Disbursements for costs and expenses ................. 600,000
Purchases of equipment for cash ...................... 200,000
Proceeds from issuance of common 250,000
stock ...............
Payments on short-term borrowings .................... 25,000
Proceeds from short-term borrowings .................. 50,000
Depreciation on equipment ............................ 40,000
Disbursements for income taxes ....................... 45,000
Bad debt write-offs .................................. 30,000

What is the cash balance at December 31 of the first year?

The correct answer is:
P105,000

If the month-end bank statement shows a balance of P36,000, outstanding checks are
P12,000, a deposit of P4,000 was in transit at month end, and a check for P500 was
erroneously charged by the bank against the account, the correct balance in the bank
account at month end is
The correct answer is:
P28,500
If a petty cash fund is established in the amount of P250, and contains P150 in cash
and P95 in receipts for disbursements when it is replenished, the journal entry to record
replenishment should include credits to the following accounts

The correct answer is:

Cash, P100
In preparing its August 31, 2020 bank reconciliation, Bing Corp. has available the
following information:
Balance per bank statement, 8/31/20                                                                 P21,650
Deposit in transit, 8/31/20                                                                                         3,900
Return of customer’s check for insufficient funds, 8/30/20                                  600
Outstanding checks, 8/31/20                                                                                     2,750
Bank service charges for August                                                                                  100
At August 31, 2020, Bing’s correct cash balance is
The correct answer is:
P22,800
Lawrence Company has cash in bank of P15,000, restricted cash in a separate account
of P4,000, and a bank overdraft in an account at another bank of P2,000. Lawrence
should report cash of
The correct answer is:
P15,000
Consider the following: Cash in Bank – checking account of P13,500, Cash on hand of
P500, Post-dated checks received totaling P3,500, and Certificates of deposit totaling
P124,000. How much should be reported as cash in the statement of financial position?

The correct answer is:

P  14,000
Assume the following facts for Kurt Company: The month-end bank statement shows a
balance of P40,000; outstanding checks total P2,000; a deposit of P8,000 is in transit at
month-end; and a check for P400 was erroneously charged against the account by the
bank. What is the correct cash balance at the end of the month?
The correct answer is:
P46,400
In preparing its bank reconciliation for the month of April 2021, Henke, Inc. has available
the following information.
Balance per bank statement, 4/30/21                                           P39,140
NSF check returned with 4/30/21 bank statement                            450
Deposits in transit, 4/30/21                                                                5,000
Outstanding checks, 4/30/21                                                              5,200
Bank service charges for April                                                                  20
What should be the correct balance of cash at April 30, 2021?

The correct answer is:

P38,940
The August 31 bank statement of Kelvin Inc. showed a balance of P113,000. Deducted
in arriving at this amount was a customer's NSF check for P2,400 that had been
returned. Kelvin 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)?

The correct answer is:

P121,800
Trask Corporation's checkbook balance on December 31, 2020, was P8,000. In
addition, Trask held the following items in its safe on December 31:
Check payable to Trask Corporation, dated January 2, 2021, not included in December 31 checkbook

Check payable to Trask Corporation, deposited December 20, and included in December 31 checkboo
returned by bank on December 30, stamped "NSF." The check was redeposited January 2, 2021, and
7 ..

Post-dated checks .......................................

Check drawn on Trask Corporation's account, payable to a vendor, dated and recorded December 31,
until January 15, 2021   ..................................

The proper amount to be shown as cash on Trask's balance sheet at December 31,
2020, is

The correct answer is:

P8,600
The cash account shows a balance of P45,000 before reconciliation. The bank
statement does not include a deposit of P2,300 made on the last day of the month. The
bank statement shows a collection by the bank of P940 and a customer’s check for
P320 was returned because it was NSF. A customer’s check for P450 was recorded on
the books as P540, and a check written for P79 was recorded as P97. The correct
balance in the cash account was

The correct answer is:

P45,548
Ramos Company had the following bank reconciliation at March 31:
Balance per bank statement, 3/31 ........................
Add: Deposit in transit .................................
 
Less: Outstanding checks ................................
Balance per books, 3/31 .................................
 
Data per bank statement for the month of April follow:
 
  Deposits ..............................................
  Disbursements .........................................

All reconciling items at March 31 cleared through the bank in April. Outstanding checks
at April 30 totaled P15,000. What is the amount of cash disbursements per books in
April?
The correct answer is:
P89,200
Steinert Company has the following items at year-end:
Cash in bank                                                                          P30,000
Petty cash                                                                                        500
Commercial paper with maturity of 2 months                    8,200
Postdated checks                                                                        2,100
Steinert should report cash and cash equivalents of
The correct answer is:
P38,700
Kaniper Company has the following items at year-end:
Cash in bank                                                                         P20,000
Petty cash                                                                                       300
Commercial paper with maturity of 2 months                    5,500
Postdated checks                                                                        1,400
Kaniper should report cash and cash equivalents of

The correct answer is:

P25,800
In preparing its bank reconciliation for the month of February, James Company has
available the following information:
Balance per bank statement, February 28 .................
Deposit in transit, February 28 .........................
Outstanding checks, February 28 .........................
Check erroneously deducted by bank from James' account,
  February 10 ...........................................
Bank service charges for February .......................

What is the corrected cash balance at February 28?

The correct answer is:
P18,400