1. If the necessary adjusting journal entry is made regarding the case of Concordia, what is the effect to the net income? 2. The effect on 2020 net income of JAYR Company of its failure to record the Falcon. 3. The overstatement of receivabie from Lazaro is CM involving transaction with PROBLEM NO. 2
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- MC33 On December 1, 2020, Kyle Corporation established a petty cash fund of P4,000. On December 31, 2020, the petty cash fund was examined and found to have receipts and documents for miscellaneous expenses amounting to P3,640. In addition, there was cash amounting to P440. What entry would be required to record replenishment of the petty cash fund on December 31, 2020? (with solution) a. Petty Cash — P3,640 Cash Short and Over — P80 Cash in Bank — P3,560 b. Miscellaneous Expense — P3,640 Cash Short and Over — P80 Petty Cash — P3,560 c. Miscellaneous Expense — P3,640 Cash Short and Over — P80 Cash in Bank — P3,560 d. Miscellaneous Expense — P3,560 Cash Short and Over — P80 Cash in Bank — P3,640The check book balance of CCC Company on December 31,2020 was P4,000,000.Data about certain cash items follow. A customer amounting to P200,000 dated January 2,2021 was not included inthe December 31,2020 checkbook balance. Another customer check for P500,000 deposited on December 22,2020 wasincluded in its checkbook balance but returned by the bank forinsufficiency of fund. The check was deposited on January 5, 2021 andcleared two days. A P400,000 check payable to supplier dated and recorded on December30,2020 was mailed on January 16,2021. A petty cash fund of P50,000 with the following summary on December31,2020:Coins and Currencies 5,000Petty cash vouchers 43,000Return value of 20 cases of soft drinks 2,00050,000 A check of P43,000 was drawn on December 31,2020 payable to petty cash. The check book balance of CCC Company on December 31,2020 was P4,000,000.Data about certain cash items follow. A customer amounting to P200,000 dated January 2,2021 was not included inthe…MC37 In preparing its August 31, 2020 bank reconciliation, Jade Company has available the following information: Balance per bank statement, 8/31/2020 — P180,500 Deposit in transit,8/31/2020 — P32,500 Return of costumer's NSF check, 8/31/2020 — P6,000 Outstanding checks, 8/31/2020 — P27,500 Bank service charges for August — P1,000 At August 31, 2020, Jade Company's correct cash balance is? (with solution) a. P192,500 b. P185,500 c. P179,500 d. P178,500
- MC44 Gem Co. had the following cash balances at December 31, 2020: Petty cash fund — P1,500 Customer's certified check — P5,000 Customer's NSF check — P2,000 Customer's postdated check — P4,000 Unrestricted demand deposits — P486,000 Company checks written and deducted from the demand deposits but not scheduled to be mailed until January 2, 2021 — P12,000 Time deposits restricted for use (expected use in 2021) — P300,000 In exchange for a guaranteed line of credit, Gem has agreed to maintain a minimum balance of P100,000 in its unrestricted demand deposits account. How much should Gem report as "Cash" in its December 31, 2020 statement of financial position? (with solution) a. P399,500 b. P404,500 c. P480,500 d. P504,500Harrigan Enterprises utilizes Snoopy Systems to design and implement a cash management system. Due to Harrigan’s cash management problems, it cannot currently pay for the system out of pocket. Snoopy chooses to extend a 6% note on January 1, 2013, for the $27,000 project cost. Required: Hide 1. Prepare Snoopy's journal entry to record the service performed on January 1, 2013. Account and Explanation Debit Credit Record sale with note 2. Determine how much interest Snoopy will receive if the note is repaid on May 1, 2013.$ Hide 3. Provide Snoopy's journal entry to record the cash received to pay off the note and interest on May 1, 2013. If an amount box does not require an entry, leave it blank.…I NEED HELP WITH THIS WORD PROBLEM A new accountant at Coronado Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2020. 1. $75 of currency and coin in a locked box used for incidental cash transactions. 2. A $12,800 U.S. Treasury bill, due May 31, 2020. 3. $210 of April-dated checks that Wyne has received from customers but not yet deposited. 4. An $93 check received from a customer in payment of its April account, but postdated to May 1. 5. $2,700 in the company’s checking account. 6. $5,400 in its savings account. 7. $83 of prepaid postage in its postage meter. 8. A $38 IOU from the company receptionist. (a)What balance should Coronado report as its “Cash and cash equivalents” balance at April 30, 2020? CASH AND CASH EQUIVALENTS BALANCE $________
- On December 1, 2020, Wacky Company established an imprest petty cash fund. 2020 Dec 1 Established an imprest petty cash fund of 10,000 by writing a check on National Bank Dec 20 Replenished the petty cash fund by writing a check on National Bank. The fund contained: Currency and coins 1,000 Vouchers for selling expenses 5,000 Vouchers for miscellaneous expense 2,000 Vouchers for equipment 2,000 Dec. 31 The petty cash fund was not replenished. The fund contained: Currency and coins 6,000 Postdated employee's check 2,000 Vouchers for selling expenses 1,500 Vouchers for transportation 500 2021 Jan 15. Encashed the employee's check. The proceeds were retained in the fund. Jan 31. Replenished the petty cash fund by writing a check on National Bank. The petty cash vouchers for January expenditures are: Distribution costs 500 Administrative expenses 2,000 Transportation 1,000 Payment for supplier's invoice 1,200 Required: 1. Prepare journal entries to record the transactions.…Choose the letter of the correct asnwer: Callous Company reported the following accounts on December 31, 2020: Cash on hand - 200,000;' Petty cash fund - 20,000; Philippine Bank current account - 5,000,000; City Bank current account No. 1 - 4,000,000; City Bank current account No. 2 (overdraft) - (100,000); Asia Bank saving account - 250,000;Asia Bank time deposit, 90 days - 2,000,000;* Additional data: > Cash on hand included the following items: Customer check for P35,000 returned by bank December 26, 2020 due to insufficient fund but subsequently redeposited and cleared by the bank on January 10, 2021. > Customer check for P15,000 dated January 10, 2021, received December 23, 2020.> The petty cash fund consisted of the following items: Currency and coins - 5,000; IOUs from officers - 2,000; Unreplenished petty cash vouchers 12,000.> Included among the checks drawn by Callous Company against the Philippine Bank current account and recorded in December 2020 were the…MC29 The following pertains to Onyx Trading on April 30, 2020: Correct cash balance in a general checking account with Equitable-PCIBank — P320,000 Overdraft in a special checking account with Family Bank (Onyx does not have another account with Family Bank) — P20,000 Cash accumulated in a special fund that will be used for plant expansion in five years — P150,000 Cash surrender value of life insurance policy — P 32,000 Cash travel advances in the hands of sales personnel — P12,000 Currency and coins in a petty cash fund (the company has not replenished the fund to the imprest amount of P2,000) — P580 How much cash should Onyx report on the April 30, 2020 statement of financial position? (WITH SOLUTION) a. P332,580 b. P322,000 c. P320,580 d. P302,000
- 7. How much is the cash shortage or overage as of December 31, 2021? Indicate whether shortage or overage. A. no shortage B. shortage of P500 C. overage of P500 D. shoratge of P4,500 8. How much petty cash fund shall be shown as part of the Cash balance as of December 31, 2021? * A. 35,000.00 B. 45,000.00 C. 53,500.00 D. 38,500.00In your count of petty cash fund in the morning of January 5, 2022 revealed the following:Bills and coins - P3,560Paid vouchers dated Dec 2021 - P2,140Paid vouchers dated Jan 2022 - P1,130IOUs with supporting vouchers dated Dec 2021 - P1,600 dated Jan 2022 - P1,000Unsigned payroll envelope (opened, money is missing) - P2,000The imprest balance of the petty cash fund is P10,000.What is the required adjusting entry (compound form) at December 31, 2021 to bring the petty cash fund to the correct amount?you were provided with the December 31, 2023 balance of the cash and cash equivalents account for Burberry Company and your review revealed the following compositions: Change fund P30,000Petty cash fund (P3,000 expense vouchers, P2,000 employee IOU) 20,000Cash in bank 8,000,000 Cash on hand (included a check amounting to P150,000. payable to Burberry dated January 1, 2024 and two checks amounting to P100,000 and P100,000 payable to Burberry dated November 30, 2023 and April 30, 2023, respectively) 550,000Treasury bills - 45 days 500,000 Pension fund…