Quiz - Cash
Quiz - Cash
Quiz - Cash
1. The following items are found in the cash account of Ivie Company at December 31, 2018. The
company’s controller asks your opinion whether the items listed below should be considered as part of
cash account and come up with adjusting entry to adjust the cash account. (16 points)
a. No adjusting entry
b. Cash in Bank 30,000
Accounts Payable 30,000
c. Sales discount 4,000
Accounts Receivable 4,000
d. Cash in Closed Bank/Investment/Receivable from closed bank 95,000
Cash in Bank 95,000
e. Redemption Fund/Investment 100,000
Cash in Bank 100,000
f. Sinking Fund/Short-term investment 100,000
Cash in Bank 100,000
g. No AJE
h. No AJE
i. Cash in Bank 50,000
Bank Overdraft 50,000
j. Cash in Bank 50,000
Accounts Payable 50,000
k. No AJE (may be offset with RCBC checking account No. 0002347)
l. Postage Stamps/Supplies2,000
Cash 2,000
m. No AJE (part of cash under cash equivalents)
n. No AJE (part of cash under cash equivalents)
o. No AJE
p. No AJE
q. No AJE
2. Trap Company provided the following transactions: (10 points)
2019
Nov. 2 The entity established a petty cash fund of P10,000.
A check was drawn to replenish the fund and to increase its amount to P20,000.
2020
Jan. 2 Encashed the employee’s check. The proceeds were retained in the fund.
Required: Prepare journal entries to record the transactions under fluctuating fund and imprest fund
system
Imprest Fund System Fluctuating Fund System
11/02 – Petty Cash Fund 10,000 11/02 – Petty Cash Fund 10,000
Cash in Bank 10,000 Cash in Bank 10,000
11/30 – Postage 2,000 11/30 – Postage 2,000
Supplies 5,000 Supplies 5,000
Petty Cash Fund 10,000 Petty Cash Fund 10,000
Cash in Bank 17,000 Cash in Bank 17,000
12/31 – Postage 3,000 12/31 – Postage 3,000
Supplies 4,000 Supplies 4,000
Receivable from Employee 2,000 Receivable from Employee 2,000
Petty Cash Fund 9,000 Petty Cash Fund 9,000
01/01 – Cash in Bank 9,000 01/01 – No Entry
Postage 3,000
Supplies 4,000
Receivable from Employee 2,000
01/02 – No Entry 01/02 – Petty Cash Fund 2,000
Receivable from Employee 2,000
01/31 – Postage 5,000 12/31 – Postage 2,000
Supplies 6,000 Supplies 2,000
Accounts Payable 7,000 Accounts Payable 7,000
Cash Short or Over 1,000 Petty Cash Fund 7,000
Cash in Bank 19,000 Cash Short or Over 1,000
Cash in Bank 19,000
*Postage stamps are not Cash
Deposit in Transit:
May 31 600,000
June 30 480,000
Outstanding Checks:
May 31 100,000
June 30 650,000
Required: Prepare a proof of cash for the month of June (44 points)
Boon Company
Proof of Cash
For the month of June
Book 05/31 Receipts Disbursements 06/30
Unadjusted Balance 2,200,000 6,300,000 5,500,000 3,000,000
Note collected by Bank:
May 200,000 (200,000)
June 300,000 (300,000)
NSF Checks:
May (100,000) (100,000)
June 50,000 (50,000)
Book Errors:
Collection of 200,000 180,000 180,000
recorded as 20,000
Payment of 600,000 540,000 (540,000)
recorded as 60,000
Adjusted Balance 2,300,000 6,580,000 5,990,000 2,890,000