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Benevolent Company had various cash accounts totaling $11.5 million as of December 31, 2019 that should be reported as cash and cash equivalents, excluding the $3 million restricted account. Meekness Company should report $4 million as cash. Marvelous Company should report $9.55 million as cash and cash equivalents, excluding the $3 million time deposit. Gratitude Company should report $6.935 million as cash and cash equivalents.
Benevolent Company had various cash accounts totaling $11.5 million as of December 31, 2019 that should be reported as cash and cash equivalents, excluding the $3 million restricted account. Meekness Company should report $4 million as cash. Marvelous Company should report $9.55 million as cash and cash equivalents, excluding the $3 million time deposit. Gratitude Company should report $6.935 million as cash and cash equivalents.
Benevolent Company had various cash accounts totaling $11.5 million as of December 31, 2019 that should be reported as cash and cash equivalents, excluding the $3 million restricted account. Meekness Company should report $4 million as cash. Marvelous Company should report $9.55 million as cash and cash equivalents, excluding the $3 million time deposit. Gratitude Company should report $6.935 million as cash and cash equivalents.
1. Benevolent Company had the following account balances on December
31, 2019:
Cash in bank – current account 5,000,000
Cash in bank – payroll account 1,000,000 Cash on hand 500,000 Cash in bank – restricted account for building construction expected to be disbursed in 2020 3,000,000 Treasury bills, purchased December 15, 2019 and due March 15, 2020 2,000,000
The cash on hand includes a P200,000 check payable to Benevolent,
dated January 15, 2020. What should be reported as “cash and cash equivalents” on December 31, 2019? 2. The following data pertain to Meekness Company on December 31, 2019:
Check book balance 4,000,000
Bank statement balance 5,000,000 Check drawn on Meekness’ accounts, payable to supplier, dated and recorded on December 31, 2019, but not mailed 500,000 until January 15, 2020 Cash in bond sinking fund 2,000,000
On December 31, 2019, how much should be reported as “cash”?
3. On December 31, 2020, Marvelous Company had the following cash balances:
Cash in bank 5,000,000
Petty cash fund 50,000 Time deposit, one year, due March 31, 2021 3,000,000 Savings deposit 1,500,000
A check of P100,000 dated January 15, 2021 in payment of accounts
payable was recorded and mailed on December 31, 2020. In the current assets section of the December 31, 2020 Statement of Financial Position, what amount should be reported as “cash and cash equivalents”? 4. The December 31, 2019 trial balance of Gratitude Company includes the following accounts:
Petty cash fund 50,000
Current account – First Bank 4,000,000 Current account – Second Bank (overdraft) (250,000) Money market placement – Third Bank 1,000,000 Time deposit – Fourth Bank 2,000,000 ❖The petty cash fund includes unreplenished December 2019 petty cash expense vouchers for P15,000 and an employee check for P5,000 dated January 31, 2020. ❖A check for P100,000 was drawn against First Bank current account dated and recorded December 29, 2019 but delivered to payee on January 15, 2020. ❖The fourth bank time deposit is set aside for land acquisition in early January 2020.
The December 31, 2019 Statement of Financial Position should report
“cash and cash equivalents” at 5. Magnificent Company had the following account balance at December 31, 2019:
Cash in bank 2,250,000
Cash on hand 125,000 Cash legally restricted for additions to plant (expected to be disbursed in 2020) 1,600,000
Cash in bank includes P600,000 of compensating balance against
short-term borrowing arrangement. The compensating balance is not legally restricted as to withdrawal by Magnificent. In the current assets section of Magnificent’s December 31, 2019 Statement of Financial Position, total cash should be reported at 6. On December 31, 2019, Humility Company had the following cash balances:
Cash in bank 1,800,000
Petty cash fund (all funds were reimbursed on 12/31/2019 50,000 Time deposit (due February 1, 2020) 250,000
Cash in bank includes P600,000 of compensating balance against
short-term borrowing arrangement at December 31, 2019. The compensating balance is legally restricted as to withdrawal by Humility. In the current assets section of Humility’s December 31, 2019 Statement of Financial Position what total amount should be reported as cash and cash equivalents? 7. The cash account in Bravery Company’s ledger showed a balance at December 31, 2019 of P4,415,000 which included the following items:
Petty cash fund 24,000
Undeposited receipts, including a postdated customer check 1,220,000 for P70,000 Cash in Allied Bank, per bank statement, with a check for P40,000 still outstanding 2,245,000 Bond sinking fund – cash 850,000 Vouchers paid out of collections, not yet recorded 43,000 IOUs signed by employees, taken from collections 33,000 4,415,000 At what amount should cash be reported on the December 31, 2019 Statement of Financial Position? 8. The cash account in the current assets section of the Statement of Financial Position of Cheerful Company consists of: Bond sinking fund cash 1,500,000 Checking account in FEBTC ( A P320,000 check is still outstanding per bank statement) 3,155,000 Currency and coins awaiting deposit 1,135,000 Petty cash fund ( of which P10,000 in is the form of paid 50,000 vouchers) Receivables from officers and employees 175,000 6,515,000 The correct cash balance for the Statement of Financial Position is 9. Perseverance Company provided the following information with respect to its cash and cash equivalents on December 31, 2019 Checking account at First Bank (200,000) Checking account at Second Bank 3,500,000 Treasury savings bonds 1,000,000 Payroll account 500,000 Value added tax account 400,000 Foreign bank account – restricted (in equivalent pesos) 2,000,000 Postage stamps 50,000 Employee’s postdated check 300,000 IOU from president’s brother 750,000 Credit memo from a vendor for a purchase return 80,000 Traveler’s checks 300,000 Not-sufficient-fund check 150,000 Petty cash fund (P20,000 in currency and expense receipts for P30,000) 50,000 Money order 180,000
What amount would be reported as unrestricted cash on the Statement of
Financial Position? 10. Account of the petty cash fund of Joyful Company showed its composition as follows: Coins and currency 3,300 Paid vouchers: Transportation 600 Gasoline 400 Office supplies 500 Postage stamps 300 Due from employees 1,200 3,000 Manager’s check returned by bank marked NSF 1,000 Check drawn by company to the order of petty cash custodian 2,700 What is the amount of the petty cash fund for Statement of Financial Position purposes? 11. The petty cash fund of the Careful Enterprises immediately after the close of business on September 30, 2019, the end of the company’s fiscal year is composed of the following: Currencies 20,000 Coins 2,000 Petty cash vouchers: Gasoline payments for delivery equipment 3,000 Medical supplies for employees 1,000 Repairs of office equipment 1,500 Loans to employees 3,500 A check drawn by the company payable to the order of Margaux Marasigan, petty cash custodian representing her 15,000 salary An employee’s check returned by the bank by insufficiency of funds 3,000 A sheet of paper with names of several employees together with contribution for a birthday gift of a co-employee. Attached to the sheet of paper is a currency 5,000 of The petty cash general ledger account has an imprest balance of P50,000. Based on the above data, what is the amount of petty cash fund that should be shown on the Statement of Financial Position as of September 30, 2019? 12. Triumphant Company’s checkbook balance on December 31, 2019 was P5,000,000. In addition, Triumphant held the following items in its safe on that date: Check payable to Triumphant, dated January 2, 2020 in payment of a sale made in December 2019, not included in December 31 checkbook balance 2,000,000 Check payable to Triumphant, deposited December 15 and included in December 31 checkbook balance, but returned by bank on December stamped “NSF” The check was redeposited on January 2, 2020 and cleared 500,000 on January 9, 2020 Check drawn on Triumphant’s account payable to vendor, dated and recorded in Triumphant’s books on December 31, but not mailed until January 10, 2020 300,000 The proper amount to be shown as “cash” on Triumphant’s Statement of Financial Position at December 31, 2019 is 13. The checkbook balance of Freedom Company on December 31, 2019 was P4,000,000. Information about certain cash items follows: ❖A customer check amounting to P200,000 dated January 2, 2020 was included in the December 31, 2019 checkbook balance. ❖Another customer check for P500,000 deposited on December 22, 2019 was included in its checkbook balance but returned by the bank for insufficiency of fund. This check was redeposited on December 26, 2019 and cleared two days later. ❖A P400,000 check payable to supplier dated and recorded on December 30, 2019 was mailed on January 16, 2020. ❖A petty cash fund of P50,000 with the following summary on December 31, 2019: Coin and currencies 5,000 Petty cash vouchers 43,000 Return value of 20 cases of soft drinks 2,000 Total 50,000 ❖A check of P43,000 was drawn on December 31, 2019, payable to Petty Cash. What is the “cash” balance on December 31, 2019?