1D 11 D 21 C 31 D 41 C 51 925,000.

00
2B 12 B 22 D 32 D 42 A 52 4,015,000.00
3D 13 B 23 A 33 C 43 A 53 6,200,000.00
4C 14 A 24 C 34 A 44 D 54 6,874,000.00
5B 15 B 25 C 35 A 45 C 55 8,344,000.00
6D 16 D 26 B 36 C 46 D 56 4,045,000.00
7D 17 D 27 C 37 A 47 D 57 605,000.00
8C 18 C 28 A 38 C 48 B 58 1,145,000.00
9D 19 C 29 B 39 A 49 A 59 3,379,000.00
10 B 20 C 30 D 40 A 50 D 60 190,000.00
61 629,000.00
62 777,000.00
63 525,000.00
64 377,000.00
65 (125,000.00)
 The following data relate to acounts receivable of Mulan Company for 2021:

Accounts receivable, January 1 650,000.00

Accounts written off 40,000.00
Collections from customers 2,150,000.00
Credit sales 2,700,000.00
Estimated future sales returns at December 31 50,000.00
Estimated uncollectible accounts at 12/31 per aging 110,000.00
Sales returns 75,000.00

51 What amount should Mulan report as Net Realizable Value of accounts receivable on
December 31, 2021? 925,000.00

Accounts receivable, January 1 650,000.00

Credit sales 2,700,000.00
Total
Less: Collections from customers (2,150,000.00)
Accounts written off (40,000.00)
Sales returns (75,000.00)
Accounts receivable, December 31 1,085,000.00
Less:
Estimated future sales returns at December 31 (50,000.00)
Estimated uncollectible accounts at 12/31 per aging (110,000.00)
NRV 925,000.00

The December 31, 2021, trial balance of Elena Company included the following accounts:

Cash on hand 500,000.00

Petty cash fund 20,000.00
Security bank current account 1,000,000.00
PNB Current account no. 1 400,000.00
BNB Current account no. 2 (50,000.00)
BSP Treasury bill - 60 days 3,000,000.00
BPI time deposit - 30 days 2,000,000.00

*The cash on hand included a customer postdated check of P100,000 and postal money
order of P40,000.

*The petty cash fund included unreplenished petty cash vouchers for P2,000 and an
employee check for P3,000 dated January 31, 2022.

*A check for P200,000 was draw against Security Bank account, dated Janaury 15, 2022,
delivered to the payee and recorded December 31, 2021.

*The BSP Treasury Bill is set aside for acquisition of land to be used as a factory site.

52 What total amount of cash and cash equivalents should be reported in the statement of
financial position on December 31, 2021?
 What total amount of cash and cash equivalents should be reported in the statement of
financial position on December 31, 2021? 4,015,000.00

Cash on hand 400,000.00

Petty cash fund 15,000.00
Security bank current account 1,200,000.00
PNB Current account no. 1 400,000.00
BPI time deposit - 30 days 2,000,000.00
Total cash and cash equivalents 4,015,000.00

The following information is available for Anna Company relating to 2021 operations:

Accounts receivable collected 8,400,000.00

Accounts receivable, January 1 4,000,000.00
Cash sales 2,000,000.00
Gross margin on sales 4,200,000.00
Inventory, December 31 4,400,000.00
Inventory, January 1 4,800,000.00
Purchases 8,000,000.00

53 What is the balance of accounts receivable on December 31, 2021? 6,200,000.00

Inventory, January 1 4,800,000.00

Purchases 8,000,000.00
GAS 12,800,000.00
Inventory, December 31 (4,400,000.00)
COGS 8,400,000.00
Gross margin on sales 4,200,000.00
Gross sales 12,600,000.00
Cash sales (2,000,000.00)
Credit sales 10,600,000.00
Accounts receivable, January 1 4,000,000.00
Total 14,600,000.00
Accounts receivable collected (8,400,000.00)
Accounts receivable, December 31 6,200,000.00

While checking the cash account of Elsa Company on December 31, 2021, the following information is
discovered:

Balance per bank (outstanding checks of P892,000) 6,532,000.00

Balance per book 6,871,000.00
Bank charges not yet taken up in the book 6,000.00
Bond sinking fund 1,000,000.00
Currency and coins counted 950,000.00
Deposit in bank closed by BSP 1,600,000.00
Deposit in transit 1,234,000.00
Errors in recording a check in the book. The correct amount as paid by the bank is P89,000 9,000.00
instead of P98,000 as recorded in the book, or a difference of
Payroll account 355,000.00
 Petty cash fund (of which P10,000 is in the form of paid vouchers) 50,000.00
Receivables from employees 70,000.00
Time Deposit, 30 days 125,000.00

54 What is the adjusted cash in bank on December 31, 2021? 6,874,000.00

55 What total amount of cash and cash equivalents should be reported in the statement of
financial position on December 31, 2021? 8,344,000.00

Balance per book 6,871,000.00

Bank charges (6,000.00)
Book error in recording check 9,000.00
Adjusted book balance 6,874,000.00
or
Balance per bank statement 6,532,000.00
Deposit in transit 1,234,000.00
Outstanding check (892,000.00)
Adjusted bank balance 6,874,000.00

Adjusted bank balance 6,874,000.00

Currency and coins counted 950,000.00
Petty cash fund (of which P10,000 is in the form of paid vouchers) 40,000.00
Payroll account 355,000.00
Time Deposit, 30 days 125,000.00
Total cash and cash equivalents 8,344,000.00

At year-end, Rapunzel Company reported accounts receivable of P8,150,000 with the following details:

Accounts known to be worthless 125,000.00

Advance payments on purchase 358,000.00
Advances to subsidiary 1,200,000.00
Customers' accounts reporting credit balances arising from sales returns (725,000.00)
Subscription receivable due in 90 days 1,800,000.00
Trade accounts on which postdated checks are held and no entries were made on receipt of
checks 350,000.00
Trade accounts receivable 2,900,000.00
Receivables from officers, due currently 225,000.00
Trade installments due 1-18 months exclusive of unearned finance charge of P50,000 795,000.00

56 What is the correct balance of trade accounts receivable? 4,045,000.00

Trade accounts receivable 2,900,000.00

Trade installments due 1-18 months exclusive of unearned finance charge of P50,000 795,000.00
Trade accounts on which postdated checks are held and no entries were made on receipt of
checks 350,000.00
4,045,000.00

The following data were taken from the records of Tiana Company for the year ended December 31, 2021:
 Accounts receivable determined to be worthless 25,000.00
Collections received in settlement of notes 180,000.00
Collections received to settle accounts 2,450,000.00
Discounts allowed by creditors 260,000.00
Discounts taken by customers 40,000.00
Merchandise returned by customer 15,000.00
Merchandise returned to suppliers 70,000.00
Notes given to creditors in settlement of accounts 250,000.00
Notes received to settle accounts 400,000.00
Payments on notes payable 100,000.00
Payments to creditors 3,200,000.00
Provision for doubtful accounts 90,000.00
Purchases on account 3,900,000.00
Sales on account 3,600,000.00

57 What is the net realizable value of accounts receivable on December 31, 2021? 605,000.00

Sales on account 3,600,000.00

Notes received to settle accounts (400,000.00)
Accounts receivable determined to be worthless (25,000.00)
Merchandise returned by customer (15,000.00)
Collections received to settle accounts (2,450,000.00)
Discounts taken by customers (40,000.00)
Accounts receivable 670,000.00
Allowance for doubtful accounts (65,000.00)
NRV 605,000.00

Jasmine Company provided the following data for the purpose of reconciling the cash balance per book with
the bank balance per bank statement on December 31, 2021:

Balance per bank statement 1,650,000.00

Outstanding checks 450,000.00
Deposit in transit 245,000.00
December NSF checks (of which P50,000 had been redeposited and cleared by December 17) 150,000.00
Erroneous credit to Jasmine's account, representing proceeds of loan granted to another 300,000.00
company
Proceeds of note collected by bank for Jasmine, net of service charge of P20,000 750,000.00

58 What is the cash in bank to be reported in the December 31, 2021 statement of financial
position? 1,145,000.00

Balance per bank statement 1,650,000.00

Deposit in transit 245,000.00
Total 1,895,000.00
Outstanding checks (450,000.00)
Erroneous bank credit (300,000.00)
Adjusted bank balance 1,145,000.00
 The cash account of Snow White Company's ledger showed a balance at December 31, 2021 of P4,415,000
which consisted of the following:

Bond sinking fund 850,000.00

Cash in Allied Bank, per bank statement, with a check of P40,000 still outstanding 2,245,000.00
IOUs signed by employees, taken from collections 33,000.00
Petty cash fund 24,000.00
Undeposited receipts, including a postdated customer check for P70,000 1,220,000.00
Vouchers paid out of collections, not yet recorded 43,000.00
4,415,000.00

59 What amount should be reported as cash in the December 31, 2021 statement of financial 3,379,000.00
position?

Petty cash fund 24,000.00

Undeposited receipts, including a postdated customer check for P70,000 1,150,000.00
Cash in Allied Bank, per bank statement, with a check of P40,000 still outstanding 2,205,000.00
3,379,000.00

The following accounts were abstracted from Nancy Company's unadjusted trial balance on December 31,
2021:

Debit Credit
Accounts receivable 5,000,000.00
Allowance for doubtful accounts 40,000.00
Net credit sales 20,000,000.00

60 Nancy estimates that 3% of the gross accounts receivable will become uncollectible. What 190,000.00
amount should be recognzied as doubtful accounts expense for 2021?

Required Allowance for Doubtful Accounts 150,000.00

Add: Debit balance in allowance account before adjustment 40,000.00
Doubtful accounts expense 190,000.00

FRIENDS Company showed the following information:

Bank statement balance, July 31 275,000.00

Bank disbursements, August 314,000.00
Bank receipts, August 504,000.00

Cash in bank, balance, July 31 255,000.00

Book disbursements for August 345,000.00
Book receipts for August 650,000.00

Note Collected
July 355,000.00
August 285,000.00
 NSF Check
July 56,000.00
August 98,000.00

Service Charge
July 5,000.00
August 8,000.00

Deposits in Transit
July 449,000.00
August 470,000.00

Outstanding Checks
July 95,000.00
August 158,000.00

Collections of a receivable not recorded by

the entity and corrected in subsequent
month
July 55,000.00
August 25,000.00

Overstatement of check in payment of

travel expenses corrected in subsequent
month
July 25,000.00
August 13,000.00

61 How much is the adjusted bank balance for July 31? 629,000.00
62 How much is the adjusted bank balance for August 31? 777,000.00
63 How much is the adjusted receipts for August 31? 525,000.00
64 How much is the adjusted disbursements for August 31? 377,000.00
65 How much is the total adjustment on Book Receipts to get the Adjusted Book Receipts for
(125,000.00)
August 31?
Proof of Cash - Adjusted Balance Method August
31-Jul Receipts Disbursements 31-Aug
Balance per book 255,000.00 650,000.00 345,000.00 560,000.00
Note Collected
August 355,000.00 (355,000.00)
September 285,000.00 285,000.00
NSF Check
August (56,000.00) (56,000.00)
September 98,000.00 (98,000.00)
Service Charge
August (5,000.00) (5,000.00)
September 8,000.00 (8,000.00)
Collection of AR
August 55,000.00 (55,000.00)
September 25,000.00 25,000.00
Overstatment of check
August 25,000.00 (25,000.00)
September (13,000.00) 13,000.00
Adjusted Book Balance 629,000.00 525,000.00 377,000.00 777,000.00

August
31-Jul Receipts Disbursements 31-Aug
Balance per Bank 275,000.00 504,000.00 314,000.00 465,000.00
Deposits in Transit
March 449,000.00 (449,000.00) 470,000.00
April 470,000.00
Outstanding Checks
March (95,000.00) (95,000.00)
April 158,000.00 (158,000.00)
Adjusted Bank Balance
629,000.00 525,000.00 377,000.00 777,000.00
777,000.00
 The following data relate to acounts receivable of Mulan Company for 2021:

Accounts receivable, January 1

Accounts written off
Collections from customers
Credit sales
Estimated future sales returns at December 31
Estimated uncollectible accounts at 12/31 per aging
Sales returns

51 What amount should Mulan report as Net Realizable Value of accounts receivable on December 31,
2021?

The December 31, 2021, trial balance of Elena Company included the following accounts:

Cash on hand
Petty cash fund
Security bank current account
PNB Current account no. 1
BNB Current account no. 2
BSP Treasury bill - 60 days
BPI time deposit - 30 days

*The cash on hand included a customer postdated check of P100,000 and postal money order of
P40,000.

*The petty cash fund included unreplenished petty cash vouchers for P2,000 and an employee check
for P3,000 dated January 31, 2022.

*A check for P200,000 was draw against Security Bank account, dated Janaury 15, 2022, delivered
to the payee and recorded December 31, 2021.

*The BSP Treasury Bill is set aside for acquisition of land to be used as a factory site.

52 What total amount of cash and cash equivalents should be reported in the statement of financial
position on December 31, 2021?

The following information is available for Anna Company relating to 2021 operations:

Accounts receivable collected

Accounts receivable, January 1
Cash sales
Gross margin on sales
Inventory, December 31
Inventory, January 1
Purchases
53 What is the balance of accounts receivable on December 31, 2021?

While checking the cash account of Elsa Company on December 31, 2021, the following information is discovered:

Balance per bank (outstanding checks of P892,000)

Balance per book
Bank charges not yet taken up in the book
Bond sinking fund
Currency and coins counted
Deposit in bank closed by BSP
Deposit in transit
Errors in recording a check in the book. The correct amount as paid by the bank is P89,000 instead
of P98,000 as recorded in the book, or a difference of
Payroll account
Petty cash fund (of which P10,000 is in the form of paid vouchers)
Receivables from employees
Time Deposit, 30 days

54 What is the adjusted cash in bank on December 31, 2021?

55 What total amount of cash and cash equivalents should be reported in the statement of financial
position on December 31, 2021?

At year-end, Rapunzel Company reported accounts receivable of P8,150,000 with the following details:

Accounts known to be worthless

Advance payments on purchase
Advances to subsidiary
Customers' accounts reporting credit balances arising from sales returns
Subscription receivable due in 90 days
Trade accounts on which postdated checks are held and no entries were made on receipt of checks

Trade accounts receivable

Receivables from officers, due currently
Trade installments due 1-18 months exclusive of unearned finance charge of P50,000

56 What is the correct balance of trade accounts receivable?

The following data were taken from the records of Tiana Company for the year ended December 31, 2021:

Accounts receivable determined to be worthless

Collections received in settlement of notes
Collections received to settle accounts
Discounts allowed by creditors
Discounts taken by customers
Merchandise returned by customer
Merchandise returned to suppliers
Notes given to creditors in settlement of accounts
 Notes received to settle accounts
Payments on notes payable
Payments to creditors
Provision for doubtful accounts
Purchases on account
Sales on account

57 What is the net realizable value of accounts receivable on December 31, 2021?

Jasmine Company provided the following data for the purpose of reconciling the cash balance per book with the
bank balance per bank statement on December 31, 2021:

Balance per bank statement

Outstanding checks
Deposit in transit
December NSF checks (of which P50,000 had been redeposited and cleared by December 17)

Erroneous credit to Jasmine's account, representing proceeds of loan granted to another company
Proceeds of note collected by bank for Jasmine, net of service charge of P20,000

58
What is the cash in bank to be reported in the December 31, 2021 statement of financial position?

The cash account of Snow White Company's ledger showed a balance at December 31, 2021 of P4,415,000 which
consisted of the following:

Bond sinking fund

Cash in Allied Bank, per bank statement, with a check of P40,000 still outstanding
IOUs signed by employees, taken from collections
Petty cash fund
Undeposited receipts, including a postdated customer check for P70,000
Vouchers paid out of collections, not yet recorded

59 What amount should be reported as cash in the December 31, 2021 statement of financial position?

The following accounts were abstracted from Nancy Company's unadjusted trial balance on December 31, 2021:

Debit
Accounts receivable 5,000,000.00
Allowance for doubtful accounts 40,000.00
Net credit sales

60 Nancy estimates that 3% of the gross accounts receivable will become uncollectible. What amount
should be recognzied as doubtful accounts expense for 2021?
 FRIENDS Company showed the following information:

Bank statement balance, July 31

Bank disbursements, August
Bank receipts, August

Cash in bank, balance, July 31

Book disbursements for August
Book receipts for August

Note Collected
July
August

NSF Check
July
August

Service Charge
July
August

Deposits in Transit
July
August

Outstanding Checks
July
August

Collections of a receivable not recorded by

the entity and corrected in subsequent
month
July
August

Overstatement of check in payment of travel expenses corrected in subsequent month

July
August

61 How much is the adjusted bank balance for July 31?

62 How much is the adjusted bank balance for August 31?
63 How much is the adjusted receipts for August 31?
64 How much is the adjusted disbursements for August 31?
65 How much is the total adjustment on Book Receipts to get the Adjusted Book Receipts for August
31?
 650,000.00
40,000.00
2,150,000.00
2,700,000.00
50,000.00
110,000.00
75,000.00

500,000.00
20,000.00
1,000,000.00
400,000.00
(50,000.00)
3,000,000.00
2,000,000.00

8,400,000.00
4,000,000.00
2,000,000.00
4,200,000.00
4,400,000.00
4,800,000.00
8,000,000.00
 information is discovered:

6,532,000.00
6,871,000.00
6,000.00
1,000,000.00
950,000.00
1,600,000.00
1,234,000.00
9,000.00
355,000.00
50,000.00
70,000.00
125,000.00

owing details:

125,000.00
358,000.00
1,200,000.00
(725,000.00)
1,800,000.00
350,000.00
2,900,000.00
225,000.00
795,000.00

cember 31, 2021:

25,000.00
180,000.00
2,450,000.00
260,000.00
40,000.00
15,000.00
70,000.00
250,000.00
 400,000.00
100,000.00
3,200,000.00
90,000.00
3,900,000.00
3,600,000.00

alance per book with the

1,650,000.00
450,000.00
245,000.00
150,000.00
300,000.00
750,000.00

021 of P4,415,000 which

850,000.00
2,245,000.00
33,000.00
24,000.00
1,220,000.00
43,000.00
4,415,000.00

on December 31, 2021:

Credit

20,000,000.00
275,000.00
314,000.00
504,000.00

255,000.00
345,000.00
650,000.00

355,000.00
285,000.00

56,000.00
98,000.00

5,000.00
8,000.00

449,000.00
470,000.00

95,000.00
158,000.00

55,000.00
25,000.00

25,000.00
13,000.00