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Pdfcoffee, ACCOUNTS RECEIVABLR
Accountancy (BSA2)
Quezon City University
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PROBLEM I
The books of Kapiz Co. show the following balances at December 31, 20x1: Cash on hand ₱ 400, Cash in Bank – current account 1,200, Cash in Bank – peso savings deposit 5,000, Cash in Bank – dollar deposit (unrestricted) $ 100, Cash in Bank – dollar deposit (restricted) 250, Cash in 3-month money-market account ₱ 500, 3-month unrestricted time deposit $ 20, Treasury bill, purchased 11/1/20x1, maturing 2/14/20x2 ₱1,600, Treasury bond, purchased 3/1/20x1, maturing 2/28/20x2 1,000, Treasury note, purchased 12/1/20x1, maturing 2/28/20x2 400, Unused Credit Line 4,000, Redeemable preference shares, purchased 12/1/20x1, due on 3/1/20x
740,
Treasury shares, purchased 12/1/20x1, to be reissued on 1/5/20x
200,
Sinking fund 400,
Additional information: Cash on hand includes a ₱40,000 check payable to Kapiz Co. dated December 29, 20x1. During December 20x0, check amounting to ₱30,000 was drawn against the Cash in bank - current account in payment of accounts payable. The check remains outstanding as of December 31, 20x1. The Cash in Bank – peso savings deposit includes ₱800,000 security bond on a pending labor litigation, in favor of a previous employee. The establishment of the bond is mandated by a court of law. The Cash in Bank – peso savings deposit also includes a compensating balance amounting to ₱500,000 which is not legally restricted. The Cash in Bank – dollar deposit (unrestricted) account includes interest of $4,000, net of tax, directly credited to Kapiz Co.’s account. The exchange rate at year-end is $1 is to ₱45.
How much is the cash and cash equivalents to be reported in the 20x1 financial statements? 12,870,
PROBLEM II The cash balance of Ronnie Co. comprises the following: Cash on hand 300, Cash in bank – savings – Alpha Bank 600, Cash in bank – current – Alpha Bank (160,000) Cash in bank – current – Beta Bank (140,000) Cash in bank – deposit in escrow – Beta Bank 240, Cash in bank – savings – Charlie Bank 90,
Additional information: Cash on hand excludes undeposited collections of ₱60,000. The cash in bank – savings maintained at Alpha Bank includes a ₱100,000 compensating balance which is restricted.
How much is the amount of cash to be reported in the financial statements? 790,
PROBLEM III The following were the transactions involving an entity’s petty cash fund during the period. July. 1, 20x1 Established ₱30,000 petty cash fund. July 1 through 21, 20x
Disbursements are made for the following:
- Groceries for use of employees in the pantry ₱4,
- Transportation of Mang Benny, the messenger boy 1,
- Snacks during meetings and conferences 3,
- Gasoline for company vehicles 9,
- Pedicure of Ms. Ana (secretary of the boss) – authorized 9, Total ₱ 26,
July 22, 20x1 Total coins and currencies in the petty cash box is ₱1,500. Replenishment is made.
Assuming that the petty cash fund is not replenished and financial statements are prepared on July 31, 20x1, the month- end adjustment to the petty cash fund is:
Pantry supplies Transportation (500 + 3,000) Meetings and conferences Miscellaneous expense Receivable from custodian Petty cash fund
4,
10,
3,
9,
1,
28,
PROBLEM IV
As of December 31, 20x1, the petty cash fund of Kristelle Co. with a general leger balance of ₱15,000 comprises the following: Coins and currencies 2, Petty cash vouchers: Gasoline for delivery equipment 3, Medical supplies for employees 2,040 5, IOU’s: Advances to employees 2, A sheet of paper with names of several employees together with contribution to bereaved employee, attached is a currency of 2, Checks : Check drawn to the order of the petty cash custodian 3, Personal check drawn by the petty cash custodian 2,
The entry to replenish the fund on December 31, 20x1 is: Gasoline for delivery equipment Medical supplies for employees Advances to employees Cash short or over Cash in bank
3,
2,
2,
2,
9,
PROBLEM V
Jane Co. is preparing its September 30, 20x1 bank reconciliation. Relevant information is shown below: Balance per books 1, Balance per bank statement 2, Collection on note by bank (including ₱250 interest) 2, NSF check returned by bank 500 Bank service charges for December 70 Deposits in transit 2, Outstanding checks (including certified checks of ₱100) 1,
A ₱600 loan amortization of Jane Co. was erroneously debited by the bank to Tarzan Co.’s account. A ₱650 collection of accounts receivable was erroneously recorded in the books as ₱560. The actual amount deposited to the bank is ₱650.
The compound entry to reconcile the accounts includes is Cash in bank Accounts receivable (500 - 90) Bank service charge Note receivable (2,500 – 250) Interest income
2,
410
70
2,
250
Notes collected by bank 2,250 3, Bank service charge 20 100 NSF checks 880 1, Understatement of recorded cash collections 1,900 1, Deposit in transit 6,000 11, Outstanding checks 9,750 17, Loan amortization of Kristeta Corp. erroneously debited to Kriselda Co.’s account 2,400 1,
- How much is the adjusted cash receipts in July? 30,
- How much is the adjusted cash disbursements in July? 27,
- How much is the adjusted cash balance as of July 31? 12,
PROBLEM X
On January 1, 20x1, UFC Co. established a petty cash fund of P400. On December 31, 20x1, the petty cash fund was examined and found to have receipts and documents for miscellaneous expenses amounting to P364. In addition, there was cash amounting to P44. What entry would be required to record replenishment of the petty cash fund on December 31, 20x1? Miscellaneous Expense........... Cash Short and Over............................................... Cash in bank........................................................
PROBLEM XI Information from the records of ABC Co. is shown below: Accounts receivable - net of P8,000 credit balance in customers' accounts 100, Notes receivable (trade) 15, Notes receivable (non-trade), P15,000 collectible within one year 30, Dividends receivable 2, Subscriptions receivable 2, Advances to officers and employees (due in 10 months) 4, Accounts payable - net of P10,000 debit balance in suppliers' accounts 3,
- How much is the total trade receivables? 123,
- How much is the total current receivables? 154,
PROBLEM XII
On December 27, 20x1, ABC Co. received a sale order for a credit sale of goods with selling price of ₱3,000. The goods were shipped by ABC on December 31, 20x1 and were received by the buyer on January 2, 20x2. The related shipping costs amounted to ₱20. ABC Co. collected the receivable on January 5, 20x2. If the term of the sale is FOB destination, freight collect , how much net cash is collected on January 5, 20x2? 2,
PROBLEM XIII : STALWART STRONG Co. sells inventory with a list price of ₱200,000 on account under credit terms of 20%, 10%, 2/10, n/30. 1. If STALWART uses the gross method, how much is the debit to account receivable on initial recognition? 144, 2. If STALWART uses the net method, how much is the debit to account receivable on initial recognition? 141,
PROBLEM XIV
ABC Co. has the following information on December 31, 20x1 before any year-end adjustments. Allowance for doubtful accounts, Jan. 1 30, Write-offs 19, Recoveries 3,
Sales (including cash sales of ₱380,000) 2,280, Sales returns and discounts (including ₱3,800 sales returns on cash sales)
22,
Accounts receivable, Dec. 31 570, Percentage of credit sales 3%
How much is the recoverable historical cost of accounts receivable? 498,
PROBLEM XV
ABC Co. has the following information on December 31, 20x1 before any year-end adjustments. Accounts receivable, Jan. 1 80, Net credit sales 270, Collections from customers ( including recoveries) 140, Allowance for doubtful accounts, Jan. 1 10, Write-offs 5, Recoveries 1, Percentage of receivables 5%
- How much is the bad debt expense? 4,
- How much is the recoverable historical cost of accounts receivable? 195,
PROBLEM XVI ABC Co. has been recognizing bad debt expenses based on the direct write-off method. In 20x4, ABC Co. decided to change to the allowance method and that doubtful accounts shall be estimated using the percentage of receivables method_._ The percentage is to be computed based on all available historical data up to a maximum of four years. Information for five years is shown below: Year Write-offs Recoveries Net credit sales 20x0 10,000 600 80, 20x1 7,000 1,000 100, 20x2 10,000 3,000 160, 20x3 15,000 5,000 200, 20x4 28,000 2,000 240, 70,000 11,600 780,
The balances of accounts receivables on January 1, 20x4 and December 31, 20x4 are ₱100,000 and ₱200,000, respectively. How much is the doubtful accounts expense to be recognized in 20x4? 34,
PROBLEM XVI
ABC Co. has the following information: Days outstanding Receivable balances % uncollectible 0 – 60 180,000 1% 61 – 120 135,000 2% Over 120 150,000 6% Total accounts receivables 465,
During the year, ABC Co. wrote off ₱10,500 receivables and recovered ₱6,000 that had been written-off in prior years. The allowance for doubtful accounts has a beginning balance of ₱3,000. How much is the doubtful accounts expense for the year? 15,
PROBLEM XVII
ABC Co. sells to wholesalers on terms of 2/15, net 30. An analysis of ABC Co.’s trade receivable balances at December 31, 20x1, revealed the following:
Age in days
Receivable balances 0 – 15 180, 16 – 30 108, 31 – 60 90, 61 – 90 72, 91 – 120 54, 121 – 150 36,
Erroneous book receipt in June corrected in July, P5,000. What is the unadjusted disbursement per book on July 31, 2012? 922,
PROBLEM XXI Honda Company provides for doubtful accounts based on 3% of credit sales. The following data are available for 2011. Credit Sales during 2011 P 21,000, Allowance for doubtful accounts 1/1/11 170, Collection of accounts written off in prior years (Customer credit was reestablished) 80, Customer accounts written off as uncollectible during 2011 300,
What is the balance in allowance for doubtful accounts at December 31, 2011? 30,
PROBLEM XXII
In your audit of UMPISA PA LANG YAN! Company’s cash account as of December 31, 2013, you ascertain the following information: The bookkeeper’s bank reconciliation on November 30, 2013, is as follows:
Balance per bank statement, November 30 P 24, Add: Deposit in transit 3, Total 27, Less: Outstanding Checks No. 3408 P 440 No. 3413 300 No. 3414 6, No. 3416 3, No. 3417 800 12, Balance P 15, Add: Bank service charge for November ____ 36* Balance per general ledger, November 30 P 15,
- Entered in Check Register in December
The Cash receipt journal shows total receipts for December of P 371,766. The Cash register reflects total checks issued in December of P 377,632. A collection of P 5,912 was recorded on company books on December 31 but was not deposited until January 2, 2014.
The balance per bank statement at December 31, 2013 is P 17,516. This statement shows total receipts of P 373,502 and checks paid of P 380,284.
Your examination reveals the following information:
Check no. 3413 dated November 24, 2013, was entered in the Check register as P300. Your examination of the paid checks returned with the December bank statement reveals that the amount of this check is P30.
Check no. 3417 was mutilated and returned by the payee. A replacement check (no. 3453) was issued. Both checks were entered in the Check register but no entry was made to cancel check no. 3417.
The December bank statement includes an erroneous charge of P480.
On January 3, 2014, the bank informed your client that a December bank service charge of P42 was omitted from the statement.
Your examination of the bank credit memo accompanying the December bank statement discloses that it represents proceeds from the note receivable collection in December for P 4,000.
The outstanding checks at December 31, 2013, are as follows: No. 3408 P 440 No. 3418 P 2, No. 3417 800 No. 3419 5,
QUESTIONS:
1. What is the total book disbursement for the month of December? 377,
2. What is the book balance at December 31? 9,
3. The outstanding checks at December 31 totaled? 9,
4. What is the adjusted bank balance on November 30? 16,
5. The adjusted book receipt for the month of December should be? 375,
6. The adjusted book disbursement for the month of December should be? 377,
7. What is the adjusted book balance on December 31? 14,
PROBLEM XXIII
In connection with your audit of KAYA PA BA Company at December 31 2015, the following bank reconciliation was submitted to you by an employee of your client:
Balance per bank P 30, Deposits in transit 37, P 68, Outstanding checks 42, Balance per books P 25,
As part of your verification, you obtained the bank statement and cancelled checks from the bank on January 15, 2016. According to the records of the company, checks issued from January 1-15, 2016, amounted to P 22,482. Checks returned by the bank on January 15, 2016 totaled P 58,438. Of the checks outstanding on December 31, 2015, P 9,600 were not returned by the bank with the January 15, 2016, bank statement; and of those issued, according to the records of the company, in January 2016, P 7,200 were not returned by the bank.
Based on the above data, calculate the disbursements per company records. The difference between the disbursements per books as computed and as reported is? 10,
Pdfcoffee, ACCOUNTS RECEIVABLR
Course: Accountancy (BSA2)
University: Quezon City University
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