FAR PROBLEM - CCE Flashcards
A company had the following account balances on December 31, 2019:
Cash in bank P2,250,000
Cash on hand 125,000
Cash restricted for addition to plant (expected to be
disbursed in 2020) 1,600,000
Cash in the bank includes P600,000 of compensating balance against short-term borrowing arrangement. The compensating balance is not legally restricted as to withdrawal by the company. In the current assets section of the company’s December 31, 2019 statement of financial position, total cash should be reported at
Cash in bank P2,250,000
Cash on hand 125,000
Total cash P2,375,000
A company had the following account balances on December 31, 2019:
Cash in bank - current account P5,000,000
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
Time deposit purchased December 15, 2019, and due March 15, 2020 2,000,000
The cash on hand includes a P200,000 check payable to the company, dated January 15, 2020.
What should be reported as “cash and cash equivalents” on December 31, 2019?
Cash in bank - current account P5,000,000
Cash in bank - payroll account 1,000,000
Cash on hand (500,000 - 200,000) 300,000
Time deposit 2,000,000
Total cash and cash equivalents P8,300,000
The following data pertained to a company on December 31, 2019:
Checkbook balance P4,000,000
Bank statement balance 5,000,000
Check drawn on Conrad’s account, payable to supplier, dated and recorded on December 31, 2019, but not mailed until January 15, 2020 500,000
Cash in a sinking fund 2,000,000
On December 31, 2019, how much should be reported as “cash”?
Checkbook balance P4,000,000
Undelivered check is drawn on Conrad’s account 500,000
Adjusted cash balance P4,500,000
A company reported the following information as of the end of the current year.
Investment securities of P1,000,000. These securities are share investments in entities that are traded in the Philippine Stock Exchange. As a result, the shares are very actively traded in the market.
Investment securities of P2,000,000. These securities are government treasury bills. The treasury bills have a 10-year term and were purchased on December 31, at which time they had two months to go until they mature.
Cash of P3,400,000 in the form of coin, currency, saving account, and checking account. Investment securities of P 1,500,000. These securities are commercial papers. The term of the papers is nine months, and they were purchased on December 31, at which time they had three months to go until they mature.
How much should be reported as cash and cash equivalents at the of the current year?
Government treasury bills P2,000,000
Cash 3,400,000
Commercial papers 1,500,000
Total cash and cash equivalents P6,900,000
On December 31, 2019, a company had the following cash balances:
Cash in bank P1,800,000
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 the company. In the current assets section of the company’s December 31, 2019, statement of financial position, what total amount should be reported as cash and cash equivalents?
Cash in bank (P1,800,000 - P600,000) P1,200,000
Petty cash fund 50,000
Time deposit 250,000
Total cash P1,500,000
A company had the following account balances on December 31, 2019.
Petty cash fund P50,000
Cash in bank - current account 4,000,000
Cash in bank - sinking fund 2,000,000
Cash on hand 500,000
Cash in bank - restricted account for plant addition,
expected to be disbursed in 2020 1,500,000
Treasury bills 1,000,000
The petty cash fund includes unreplenished December 2019 petty cash expense vouchers of P10,000 and employee IOU of P5,000. The cash on hand includes a P 100,000 check payable to the company dated January 15, 2020. In exchange for a guaranteed line of credit, the company has agreed to maintain a minimum balance of P200,000 in its unrestricted current bank account. The sinking fund is set aside to settle a bond payable due on June 30, 2020. What should be reported as “cash and cash
equivalents” on December 31, 2019?
Petty cash fund (P50,000 - P15,000) P35,000
Current account 4,000,000
Sinking fund 2,000,000
Cash on hand (P500,000 - P100,000) 400,000
Treasury bills 1,000,000
Total cash and cash equivalents P7,435,000
The cash account in the company’s ledger showed a balance at December 31, 2022, of P4,415,000,
which consisted of the following:
Petty cash fund - P24,000
Undeposited receipts, including a postdated customer check for P70,000 -1,220,000
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
P4,415,000
At what amount should cash be reported in the December 31, 2022 statement of financial position?
Petty cash fund - P24,000
Undeposited receipts (P1,220,000 - P70,000) - 1,150,000
Cash in Allied bank (P2,245,000 - P40,000) - 2,205,000
P3,379,000
