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Conceptual Framework and Accounting Standards: Janesene N. Sol MWF 1:00-2:00 PM

Here are a few points in response to your question: - If a check you received was accidentally damaged or destroyed before you could deposit or cash it, you should contact the person or company that issued the check. - Explain to them what happened and request that they issue a replacement check. As long as you can provide details about the original check (amount, date, check number etc.), they should be able to verify the payment and reissue the check. - The issuer may require you to sign an affidavit or statement declaring the original check was lost or destroyed through no fault or negligence on your part. This helps protect them in case the original check is later presented for payment. - In some cases, the

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Janesene Sol
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115 views4 pages

Conceptual Framework and Accounting Standards: Janesene N. Sol MWF 1:00-2:00 PM

Here are a few points in response to your question: - If a check you received was accidentally damaged or destroyed before you could deposit or cash it, you should contact the person or company that issued the check. - Explain to them what happened and request that they issue a replacement check. As long as you can provide details about the original check (amount, date, check number etc.), they should be able to verify the payment and reissue the check. - The issuer may require you to sign an affidavit or statement declaring the original check was lost or destroyed through no fault or negligence on your part. This helps protect them in case the original check is later presented for payment. - In some cases, the

Uploaded by

Janesene Sol
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CONCEPTUAL FRAMEWORK

and
ACCOUNTING STANDARDS

Janesene N. Sol

MWF 1:00-2:00 pm
ACTIVITY SECTION

ACTIVITY 1:
PROVIDE ADJUSTING ENTRIES. (ASSUME FS DATE: DECEMBER 31, 2019)
1. On November 30, 2019, you have received a check from Baby Blue Company for a
service that you have already done on account. The check was dated February 13,
2020. Upon checking, you have only journalized the recognition of receivable and
income, but not the payment transaction. What adjusting entry should you make?

Date Account Titles Debit Credit

Dec 31 Accounts receivable


Cash
To adjust the entry on receipt of
postdated check from customer

2. On October 5, 2019, you have paid a supplier P50,000 through issuance of a check
dated December 20, 2019, for an equipment purchased on the same date. You failed
to record any transaction.
Date Account Titles Debit Credit

Dec 31 Accounts payable 5 0 0 0 0


Cash 5 0 0 0 0
To adjust the unrecorded payment of
check to supplier

3. On October 5, 2019, you have paid a supplier P50,000 through issuance of a check
dated February 20, 2020, for an equipment purchased on the same date. You failed
to record any transaction.
Date Account Titles Debit Credit

Dec 31 Cash 5 0 0 0 0
Accounts payable 5 0 0 0 0
To adjust the entry on unrecorded
payment of postdated check to supplier
4. On November 2, 2019, you have drawn and recorded a check amounting to P20,000
to pay J. Reid Company for a Land purchased on that day. On December 31, 2019,
the reporting date, the check was still in the company’s premises, because J. Reid
have forgotten to claim it.
Date Account Titles Debit Credit

Dec 31 Cash 2 0 0 0 0
Accounts payable 2 0 0 0 0
To record payment of accounts payable
to [Link]

ACTIVITY 2
Determine whether the following is included or excluded from cash:

Excluded 1. Postdated checks received from customers


Excluded 2. Postdated checks drawn
Excluded 3. Unreleased checks drawn
Excluded 4. Compensating balances that are legally restricted as to withdrawal by the
borrower
Included 5. A bank overdraft, in general
Included 6. Money order
Included 7. Cash fund set aside for payment of salaries
Included 8. Traveler’s check
Included 9. Restricted foreign currency deposit
Excluded 10. Check received that became stale
Excluded 11. Check issued that became stale
EVALUATION

Which part of the discussion did you Which part of the discussion did you
find most enjoyable to learn? find most difficult?

In the part where bank overdrafts I find it difficult in the part where I
were discussed, because I really find have to determine which are
it cool on how the bank draft works included or excluded in cash.
though it isn’t applicable here in the
Philippines.

Do you have question(s) in mind? Write it here

If ever a person gave me a check and I failed to took care of it, for example, it accidentally was
spilled by water before I got the chance to encash it, will I be able to request for a new check
to be issued again? Thank you for your response Ma’am!

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