CASH AND CASH EQUIVALENTS

1. AT DECEMBER 31, 2014, ENCINA COMPANY HAD THE FOLLOWING BALANCES IN THE ACCOUNT I
AT LAND BANK:
CHECKING ACCOUNT #1
CHECKING ACCOUNT #2
MONEY MARKET ACCOUNT
90-DAY CERTIFICATES OF DEPOSIT DUE 2/28/15
180-DAY CERTIFICATE OF DEPOSIT DUE 3/15/15

175,000
(10,000)
25,000
50,000
80,000

ENCINA CLASSIFIES WITH ORIGINAL TERMS OF 3 MONTHS OR LESS AS CASH EQUIVALENTS. IN IT

2014
BALANCE SHEET, WHAT AMOUNT SHOULD K REPORT AS CASH AND CASH EQUIVALENTS?
ANSWER: 240,000

2. ACCOUNT OF THE PETTY CAS FUND OF TIMEX COMPANY SHOWED ITS COMPOSITION AS FOLLOW
COINS AND CURRENCY
3,300
PAID VOUCHERS:
TRANSPORTATION
GASOLINE
OFFICE SUPPLIES
POSTAGE STAMPS
DUE FROM EMPLOYEES

600
400
500
300
1,200

CHECK DRAWN BY THE ENTITY TO THE ORDER OF PETTY CASH CUSTODIAN

2,700
WHAT IS THE CORRECT AMOUNT OF PETTY CASH FUND FOR STATEMENT
PRESENTATION PURPOSES?
ANSWER: 6,000

3. RESIAK COMPANY HAD THE FOLLOWING ACCOUNT BALANCCE AT DECEMBER 31,

2012:
CASH IN BANK
CASH ON HAND
CASH LEGALLY RESTRICTED FOR ADDITIONS
OF PLANT

2,250,000
125,000
1,600,000

CASH IN BANK INCLUDES 600,000 OF THE COMPENSATING BALANCES RELATED TO

SHORT-TERM BORROWING ARRANGEMENTS. THE COMPENSATING BALANCES ARE
NOT LEGALLY RESTRICTED AS TO WITHDRAWAL BY RESIAK.

IN THE CURRENT ASSET SECTION OF RESIAKS DECEMBER 31, 2012

BALANCE SHEET, AT WHAT AMOUNT SHOULD TOTAL CASH REPORTED?
ANSWER: 2,375,000
4. UPON INSPECTING THE COMPANYS RECORD ON DECEMBER 2013, YOU HAVE
SEEN THAT THE CASH ACCOUNT HAS AN AMOUNT OF 90,000 WHICH IS ALREADY
NET OF OVERDRAFT AMOUNTING TO 8,000. THE SAID OVERDRAFT IS FROM THE
COMPANYS 2nd ACCOUNT IN BPI. INCLUDED IN THE 90,000 BALANCE IS CHECK
RECEIVED FROM A CUSTOMER WHICH IS DATED FEBRUAARY 2014 IN THE AMOUNT
OF 10,000. FURTHERMORE, THE COMPANY HAS NOT YET RECORDED A
DISBURSEMENT AMOUNTING TO 11,000 IN PAYMENT OF ACCOUNT.
COMPUTE FOR THE CORRECT AMOUNT OF CASH.
ANSWER: 69,000
5. USING THE INFORMATION BELOW, DETERMINE THE CORRECT AMOUNT OF CASH
AND CASH EQUIVALENTS:
CASH ON HAND

125,000

CASH IN BANK (NET OF 10,000 OVERDRAFT FROM AN

ACCOUNT IN THE SAME BANK)
BOND SINKING FUND
3-MONTH TIME DEPOSIT
3-MONTH TREASURY BILL
PETTY CASH FUND (INCLUDES 5,000 VOUCHERS)

95,000
20,000
19,000
15,000
18,000

ANSWER: 247,000