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Friday, August 6, 2010

Valix Finacc vol 1 Problem 3-5

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 3-5


Problem 3-5

1.  Cash on hand                                                                                               500,000
     Postdated check                                                                                          (100,000)
     Adjusted cash on hand                                                                                 400,000                                                                                                                              
2.  Petty cash fund                                                                                                20,000
     Unreplenished petty cash expenses                                                               (  2,000)
     Postdated employee check                                                                          (  3,000)
     Adjusted petty cash                                                                                        15,000

3.  Security Bank current account                                                                    1,000,000
     Postdated company check delivered                                                           200,000
     Adjusted balance                                                                                       1,200,000

4.  Cash on hand                                                                                                400,000
     Petty cash fund                                                                                                15,000
     Security Bank current account                                                                   1,200,000
     PNB current account No. 1                                                                            400,000
     PNB current account No. 2                                                                        (    50,000)
     BSP Treasury bill – 60 days                                                                            3,000,000
     Total cash and cash equivalents                                                               4,965,000

     *The BPI Time deposit of P2,000,000 is shown as noncurrent investment because it is
       restricted for land acquisition.    

5.  Accounts receivable                                                          100,000
            Cash on hand                                                                                         100,000

     Expenses                                                                                2,000
     Receivable from employee                                                   3,000
            Petty cash fund                                                                                          5,000

     Security Bank current account                                           200,000
            Accounts payable                                                                                   200,000

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