ACCCOB2_Review_Q1_PS

The following are the cash balances of the company at December 31, 2023:

·      Undeposited collections (in currency and coins), ₱40,200

·      Current Account Unrestricted, ₱620,000

·      Disbursement checks written and recorded in December 2023 but are to be released to the payees in January 2024, ₱130,000

·      Restricted time deposits(expected use in June 2024), ₱2,000,000

 

The company has agreed to maintain a ₱200,000 compensating balance in its unrestricted current account.How much should be reported as Cash on the December 31, 2023, statement of financial position?

A company had the following items listed in its trial balance at 12/31/2023:

·      Currency and coins, ₱650

·      Balance in checking account, ₱2,600

·      Customer checks waiting to be deposited, ₱1,200

·      Treasury bills, purchased on 11/1/2023, mature on 4/30/2024, ₱3,000

·      Marketable equity securities, ₱10,200

·      Commercial paper, purchased on 11/1/2023, mature on 1/30/2024, ₱5,000

 

How much should be reported as Cash Equivalents on the December 31, 2023, statement of financial position?

A company had the following items listed in its trial balance at 12/31/2023:

·      Balance in checking account, Bank of the East, ₱442,000

·      Treasury bills, purchased on 11/1/2023, mature on 1/30/2024, ₱20,000

·      Loan payable, long-term, Bank of the East, ₱300,000

 

Included in the checking account balance is ₱50,000 of legally restricted cash that Bank of the East requires as a compensating balance for the ₱300,000 note. How much will the company include in its year-end balance sheet as cash and cash equivalents?

A company prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was ₱2,750 and the bank balance on the bank statement was ₱2,980. Outstanding checks totaled ₱680 and deposits in transited were ₱400. The bank statement revealed that a check written for ₱120 was incorrectly recorded by company as a ₱220 disbursement. The bank statement listed service charges and NSF check charges totaling ₱150. How much is the corrected cash balance?

As of the year-ended December 31, 2023 but before any adjusting entries, the company’s outstanding balance of Accounts Receivable totaled ₱165,000 while Allowance for Doubtful Accounts amounted to ₱2,100. It is the company’s policy to increase allowance to 4% of accounts receivable every year.

How much is the doubtful accounts expense for this year?

Total sales amounted to ₱82,500, 80% of which is on cash basis.

Accounts receivable at the end of last period is ₱10,000 and ₱12,000 at the end of this period.

What is the accounts receivable turnover?