QUIZ BEE PARTICIPANTS (DIFFICULT COMPUTATIONS)

At year-end, Champion tayo BUJPIA reported cash and cash equivalents which comprised the following:

Cash on Hand- 500,000

Demand Deposit- 4,000,000

Certificate of Deposit- 2,000,000

Postdated Company's Check- 300,000

Petty Cash fund- 50,000

Traveler's Check- 200,000

Manager's Check- 100,000

Money Order- 150,000

What total amount should be reported as cash and cash equivalents at year-end?

• 7,300,000

• 7,000,000

• 5,300,000

• 5,000,000

On December 31, 2018, West Company had the following cash balances:

Cash in Bank- 1,800,000

Petty Cash fund- all funds were reimbursed at year end-50,000

Time Deposit due February 1, 2019

Time Deposit in bank closed by BSP

Cash in bank included 600,000 of compensating balance against short-term borrowing arrangement on December 31, 2018. The compensating balance is legally restricted as to withdrawal.

On December 31, 2018, what total amount should be reported as cash and cash equivalents?

• 2,500,000

• 1,250,000

• 2,100,000

• 1,500,000

Hirap na ba kayo prepared an aging of accounts receivable on December 31 and determined that the net realizable value of the accounts receivable was P2,500,000.

Allowance for doubtful accounts on January 1- 280,000

Accounts written off as uncollectible- 230,000

Accounts Receivable on December 31- 2,700,000

Uncollectible Accounts Recovery- 50,000

What amount should be recognized as doubtful account expense for the current year?

• 230,000

• 100,000

• 200,000

• 150,000

Kaya niyo yan's allowance for doubtful accounts was P1,000,000 at the end of 2018 and P900,000 at the end of 2017.

For the year ended December 31, 2018, the entity reported doubtful accounts expense of P160,000 in the income statement.

What amount was debited to the appropriate account to write off uncollectible accounts in 2018?

• 60,000

• 100,000

• 160,000

• 260,000

In preparing the bank reconciliation for the month of August, Wag kang Matakot sumayaw katawan ay igalaw sige sumayaw ka company provided the following information:

Balance per bank statement- 1,805,000

Deposit in Transit- 325,000

Return of Customer Check for insufficient fund- 60,000

Outstanding Checks- 275,000

Bank Service Charge for August- 10,000

What is the adjusted cash in bank?

• 1,855,000

• 1,795,000

• 1,785,000

• 1,755,000

In preparing the bank reconciliation for the month of December, JuliaGeraldBea Company provided the following data:

Balance per Bank Statement-3,800,000

Deposit in Transit- 520,000

Amount erroneously credited by bank to Case's Account-40,000

Bank Service Charge for December- 5,000

NSF Checks- 50,000

Outstanding Checks- 675,000

What is the unadjusted Cash in bank balance per book?

• 3,550,000

• 3,605,000

• 3,660,000

• 3,610,000

BoomBoom Company received from a customer a one year, P500,000 note bearing annual interest of 8%.

After holding the note for six months, the entity discounted the note without recourse at 10%.

What amount of cash was received from the bank?

• 540,000

• 523,810

• 513,000

• 495,238

On July 1, 2018, Accountant Company sold goods in exchange for P2,700,000, 8 month, non-interest bearing note receivable.

At the time of the sale, the market rate of interest was 12%. The entity discounted the note at 10% on September 1, 2018.

What is the cash received from discounting?

• 1,940,000

• 1,938,000

• 1,900,000

• 1,880,000

Theoretical Company accepted from a customer a P1,000,000 face amount, 6-month, 8% note dated April 1, 2018.

On the same date, the entity discounted the note without recourse at a 10% discount rate.

What is the loss on note receivable discounting?

• 50,000

• 40,000

• 52,000

• 12,000

On June 1, 2020, Depreciation Company acquired for P1,000,000 a new machinery with useful life of 10 years and a residual value of 200,000.

How much is the accumulated depreciation on December 31, 2021 using Straight Line Method?

• 80,000

• 160,000

• 126,667

• 120,000