Reference no: EM133010239
Problems -
1. Bugoy Company provided the following data on December 31, 2016:
Check book balance 5,000,000
Bank statement balance 4,000,000
Check drawn on entity's account, payable to supplier, dated and recorded on December 31, 2016 but not mailed until January 31, 2017 1,000,000
Cash in sinking fund 1,500,000
Treasury bills, purchased November 1, 2016 and maturing January 31, 2017 2,500,000
Time deposit, purchased October 1, 2016 and maturing January 31, 2017 2,000,000
What amount should be reported as cash and cash equivalents on December 31, 2016?
2. Luna Company had the following cash balances on December 31, 2016:
Cash in bank 5,000,000
Petty cash fund (all funds were reimbursed on December 31, 2016) 50,000
Money market placement or commercial papers 1,500,000
Saving deposit 800,000
Cash in bank included P500,000 of compensating balance against short-term borrowing arrangement on December 31, 2016. The compensating balance is legally restricted as to withdrawal. A check of PI,000,000 dated January 31, 2017 in payment of accounts payable was recorded and mailed on December 31, 2016.
What amount should be reported as cash and cash equivalents on December 31, 2016?
3. Sangre Company had the following account balances on December 31, 2016:
Petty cash fund 50,000
Cash on hand 500,000
Cash in bank - current account 4,000,000
Cash in bank - payroll account 1,000,000
Cash in bank - restricted account for plant addition expected to be disbursed in 2017 500,000
Cash in sinking fund set aside for bond payable due June 30, 2017 2,000,000
The petty cash fund included unreplenished December 2016 petty cash expense vouchers of P5,000 and employee IOU of P5,000. The cash on hand included a P100,000 check payable to the entity dated January 31 2017. In exchange for a guaranteed line of credit, the entity has agreed to maintain a minimum balance of P200,000 in the unrestricted current bank account. What amount should be reported as cash and cash equivalents on December 31, 2016?