Student Name: ID #: Permit #:

Course: ACC 124 Examination: SECOND SUMMATIVE EXAM Page: 1/3

College: Term/Semester: 1ST/2ND S.Y.: 2023-2024
Total Points: 30 Exam Date:

Instruction(s): Write the letter of your answer in the booklet provided. For questions
requiring computations, provide solutions legibly. USE BLACK OR BLUE INK PEN ONLY.
ANSWERS IN PENCIL WILL BE INVALIDATED. (3 points each)

1. On December 31, 2021, the checking of financial statements of Marj Company reveals
the following:
Current account at ILY Bank (35,000)
Current account at ILLY Bank 56,000
Treasury bills (acquired 3 months before maturity) 250,000
Treasury bills (maturity date is 12/31/2022) 595,000
Payroll account 259,000
Foreign bank account – restricted (translated) 1,000,000
Postage stamps 640
Employees’ checks marked “DAIF” 8,000
IOU from the Vice-President 59,000
Credit memo from a supplier for a purchase return 54.000
Traveler’s check 75,000
Money order 24,000
Company’s check dated 12/30/2021 but not mailed until year-
end 33,000
Petty cash fund (2,500 in currency and expense receipts for
4,500) 7,000
Marj Company’s adjusted cash and cash equivalents balance at December 31, 2021 is:

Answer: 699,500

2. The cash account of Marj Corporation as of December 31, 2021 consist of the
following:

Cash collections not yet deposited to the bank 450,000

Check drawn by the vice president dated January 16, 2022 80,000

Check drawn by a supplier dated December 28, 2021 for goods

returned by the company 50,000

Petty cash fund, of which 9,000 is in the form of currencies;

9,000 in the form of employee’s IOUs; and 3,000 is supported
by approved petty cash vouchers for all expenses dated prior
to closing of the books on December 31, 2021 21,000

Total 601,000
What is the amount of cash to be reported on December 31, 2021 Statement of
Financial Position?

Answer: 509,000

© 2011 by Accounting Education, University of Mindanao

Student Name: ID #: Permit #:
Course: ACC 124 Examination: SECOND SUMMATIVE EXAM Page: 2/3
College: Term/Semester: 1ST/2ND S.Y.: 2023-2024
Total Points: 30 Exam Date:

3. On December 31, 2021, the accountant for Marj Inc. re-examined the petty cash fund.
The petty cash custodian presented the following during the count:

Currencies 2,350
Petty cash vouchers:
Postage 200
Office supplies expense 320
Transportation expense 440
Computer repairs 850
Advances to office staff 1,460 3,270
A check drawn by Marj Inc. payable to the petty cash custodian 4,100
Postage stamps 300
An employee’s check, returned by bank, marled NSF 900
An envelope containing currencies with a note “For Ma’am S”
– a retiring employee
Total 2,190
17,500
a. How much is the petty cash shortage or overage?

Answer: (6,880) – shortage

b. What is the adjusted balance of the petty cash fund on December 31, 2020?

Answer: 6,450

4. Marj Corporation showed its cash in bank below:

Balance per bank statement, December 31, 2020 38,830
Collections recorded but not yet deposited in the bank 4,353
NSF check – not recorded on books 1,82
Bank charges not yet recorded 35
Note collected by bank and not yet recorded in the books 1,790
Outstanding checks 2,200
The cash balance per books of Marj Corporation on December 31, 2020 is:

Answer: 41,048

5. In preparing its bank reconciliation on December 31, 2020, Reoja Company had made
available the following information:
Balance per bank statement 380,750
Deposit in transit 52,000
Outstanding checks 67,500
Amount erroneously credited by Bank to Reoja’s account 4,000
Bank service charge for December 750
Check drawn, dated and recorded December 31, 2020, but not mailed
until January 10, 2021 (included in the outstanding checks above) 9,000
Check of Roja Company charged by bank to the account of Reoja Company 12,000
What is the unadjusted balance per book on December 31, 2020?

Answer: 374,000

© 2011 by Accounting Education, University of Mindanao

Student Name: ID #: Permit #:
Course: ACC 124 Examination: SECOND SUMMATIVE EXAM Page: 3/3
College: Term/Semester: 1ST/2ND S.Y.: 2023-2024
Total Points: 30 Exam Date:

6. The following data are gathered by the accountant of the Cablay Company:
April 30, 2021 May 31, 2021
Cash account balance 53,000 87,400
Bank statement balance 260,000 340,000
Deposit in transit 20,500 32,200
Outstanding checks 69,000 75,000
Bank service charges 1,500 1,300
NSF check 20,600*
Company’s notes receivable
collected by the bank 160,000 211,100
*Redeposited in the same month. No entries made to take up the return and redeposit.

The bank statement and the company’s cash records show the following totals:
Canceled checks and debit memos per bank statement 540,000
Cash receipts per cash book 400,000
Checks written per cash book 524,100
Deposits and credit memos per bank statement 620,000

Requirements:
a. What is the total book receipt in May?

560,000

b. What is the total book disbursement in May?

525,600

c. What is the adjusted book balance on April 30?

211,500

d. The adjusted bank receipts in May 31 should be

631,700

e. The adjusted book disbursements on May 31 should be

546,000

f. What is the adjusted book balance on May 31?

297,200

-----END OF EXAMINATION-----

© 2011 by Accounting Education, University of Mindanao