Reference no: EM133091791
Assignment - Topic - Cash and Cash Equivalents
Question 1 - The following data pertain to CLoe Corporation on December 31, 2021:
Current account at metrobank P1,800,000
Current account at Allied Bank (100,000)
Payroll account 500,000
Foreign bank account (in equivalent pesos) 800,000
Savings deposit in a closed bank 150,000
Postage stamps 1,000
Employee's post dated check 4,000
IOU from employees 10,000
Credit memo from a vendor for a purchase return 20,000
Traveler's check 50,000
Money order 30,000
Petty cash fund 4,000
Pension fund 2,000,000
DAIF check of customer 15,000
Customer's check dated 1/10/22 80,000
Time deposit - 30 days 200,000
Money market placement (due in 6 months) 500,000
Treasury bills, due 3/31/22 (purchased 12/31/21) 200,000
Treasury bills, due 1/31/22 (purchased 2/1/21) 300,000
The cash and cash equivalents as of December 31, 2021 is?
Question 2 - The controller of an entity is in the process of preparing the financial statements for the current year. The following items are being considered.
Balances in the entity's accounts at the First Bank checking P1,350,000, savings P250,000.
Undeposited customer checks of P50,000.
Currency and coins on hand of P40,000.
Savings account at the Second Bank with a balance of P4,000,000. This account is being used to accumulate cash for future plant expansion.
P200,000 in a checking account at the Second Bank. The balance in the account represents a 20% compensating balance for a P1,000,000 loan with the bank. The entity may not withdraw the funds until the loan is due in three years.
Treasury bills: 2-month maturity bills P150,000 and 7-month bills P200,000.
What amount should be reported as cash and cash equivalents?
Question 3 - The following data pertains to CLoe Trading on April 30:
Correct cash balance in a general checking account with BDO 320,000
Overdraft in a special checking account in General Bank (CLoe Trading does not have another account with General Bank) 20,000
Cash accumulated in a special fund that will be used for plant expansion in five years 150,000 Cash surrender value of life insurance policy 32,000
Currency and coins in petty cash fund (the company has not replenished the fund to the imprest amount of P2,000) 580
How much cash should CLoe report on April 30?
Question 4 - The statement of financial position of Luis Company shows cash of P237,390. The following items were found to comprise this amount:
Cash in Metrobank, per bank statement (outstanding checks as of year-end totaled P5,200) 99,320
Savings account at Far East Bank 30,800
Petty cash fund (including expense receipts of P250) 1,500
Cash on hand (undeposited sales receipts) 4,200
Sinking fund cash 20,000
Cash in foreign bank (in equivalent pesos) 62,000
Customer's checks on hand:
Traveler's check 4,450
Certified check 3,120
90-day, BSP treasury bills 12,000
What is the correct amount of cash and cash equivalents in Luis Company's statement of financial position?
Question 5 - The cash account of Root Corporation on Dec. 31, 2022 has a balance of P127,600 and it consists of the following:
Bills and coins hand 52,780
Petty cash including petty cash vouchers of P650 1,000
Balance in saving account with a bank closed by the BSP 36,000
Customer's check dated January 15, 2023 8,000
Credit memo from suppliers for purchases returns 6,500
Postage stamps 120
Money order 800
IOU of employee 400
Checking account balance in BPI 22,000
The correct cash balance on December 31, 2022 of Root Corporation is?