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Financial Accounting and Reporting Assignment: Cash and Cash Equivalents Gregorio, Wynona Jean C. BACC1A
- The Subsidiary Ledger of Cash in Bank account of "Shaman King" Company as of December 31, 2018 composed of the following:
BPI current account No. 897 - ₱ 1,000,000- BDO current account No. 7383 2,500, RCBC savings account No. 000-637 1,500, Metrobank savings account No. 928 4,000, UCPB payroll account 3,000, Union bank time deposit No. 101 2,000, BPI current account No. 898 -overdraft (100,000)
Additional information: a. The RCBC account is restricted for the payment of Notes Payable due March 1, 2019. b. Metrobank account is restricted for the payment of Bonds Payable due March 1, 2020. c. The UCPB account is restricted for the payment of Salaries of the employees. d. The Union bank account is restricted for the purchase of an Equipment to be disbursed within 2 months.
What is the total amount of "Cash and Cash equivalents" to be presented in the 2018 Statement of Financial Position?
a. P7,900, b. P8,000, c. P13,900, d. P5,900,
Solution: BPI current account No. 897 - ₱ 1,000,000-
BDO current account No. 7383 2,500, RCBC savings account No. 000-637 1,500, UCPB payroll account 3,000, BPI current account No. 898 (100,000) Total Cash and Cash Equivalents - ₱^ 7,900,000-
Notes:
- Metrobank Account is excluded in Cash and Cash Equivalents and should be classified as noncurrent asset since it is restricted for a Bonds Payable which is due for more than a year.
- Union Account is excluded in Cash and Cash Equivalents since it is restricted for purchase of Equipment which is a noncurrent asset.
- The Cash Account of "Sakuragi" Company for December 31 are as follows:
Current account ₱2,000, Savings account 1,000, Time deposit 3,000, Insurance fund 500, Financial asset at fair value 200, Sinking fund 2,500, Undeposited collection 200, Traveler’s checks 100, Bank draft 150, Postal money order 250, Value added tax fund 400, Contingency fund 600, Change fund 100, Cash in US Dollar with foreign exchange restriction (in equivalent Philippine Peso)
SM Commercial papers 400,
What is the amount of "Cash"?
Petty cash fund (currency and coins, P5, 000; expenses, P45,000)
50,000 Letter C sagot ng prof ko
pero eto computation ko
hahahah. Sinama kasi ng
prof ko ung mga Cash
Equivalents
Treasury bill 500, Money market placement / instrument (purchased on 10/15/18, will mature on 3/15/19)
Cash surrender value 200, Certificate of deposit - 3% 400, Sinking fund (restricted for the payment of bonds payable)
Notes payable to bank 200, Bonds payable (due 12/20/19) 1,000, Retained earnings 3,000, Retained earnings restricted for plant expansion 400,
The Cash in bank includes a P200,000 compensating balance against short term borrowing. The compensating balance is restricted as to withdrawal.
In the December 31, 2018 Statement of Financial Position, Tsubaki should report “Cash” of
a. P6,405, b. P5,805, c. P5,605, d. P4,905,
Solution:
Cash in bank ₱4,000, Less: Compensating Balance 200,000 -₱ 3,800,000.00- Petty cash fund (currency and coins, P5, 000; expenses, P45,000) - only currency and coins are included
Sinking fund (restricte d for the payment of bonds
Total Cash
Notes:
- Sinking fund (restricted for the payment of bonds payable)- classified as part of cash since the bonds payable related to the sinking fund is due less than a year ad is classified as current liability.
- Treasury bill- cash equivalents
- Money market placement / instrument (purchased on 10/15/18, will mature on 3/15/19)- classified as short term investment
- Certificate of deposit - 3%- silent; classified as cash equivalents
- Notes payable to bank- liability
- Bonds payable (due 12/20/19)- liability
- Retained earnings- part of shareholder's equity
- Retained earnings restricted for plant expansion- part of shareholder's equity
- The accounting records of “Zuko” Company as of December 31, 2018 are as follows:
Cash in bank - First bank - ₱ 1,400,000- Cash in bank - Second bank -200, Cashier’s check 100, Pension fund 350, Customer’s checks outstanding for 12 months
Undeposited collections 400, Petty cash fund 20, Post-dated customer checks 700, Listed equity securities 200,
a. Included in the undeposited collections is a customer's check amounting to P50,000 returned by the bank on 12/20/2018 due to insufficient fund but subsequently redeposited and cleared by the bank on 1/8/2019.
Notes:
- Cash in bank - Second bank - different bank therefore cannot be netted against other bank and should Current Liabilies
- Pension fund- Part of Noncurrent asset since it is use for noncurrent operations
- Customer’s checks outstanding for 12 months- Receivables
- Post-dated customer checks- Receivbles
- Listed equity securities- Cannot be classified as cash equivalents because shares do not have maturity date
- "Ren" Company had a checkbook balance on December 31, 2018 of P2,500,000 and held the following items in its safe:
- Check payable to "Ren" Company, dated January 7, 2019, was included in the checkbook balance; P100,
- Check payable to "Ren" Company, deposited December 19, 2018 and included in the checkbook balance, but returned by bank on December 23, 2018 stamped "NSF". The check was redeposited on December 26, 2018 and cleared on December 29, 2018; P50,000. • Check payable to "Ren" Company, dated March 13, 2013, not yet included in the December 31 checkbook balance; P200,000.
- Check drawn on "Ren" Company's account and payable to "Coud" Company dated and recorded December 29, 2018 but not mailed until January 3, 2019; P300,000.
- Check drawn on "Ren" Company's account and payable to "Roan" Company dated January 27, 2019 but recorded and mailed to "Roan" on December 29, 2018; P50,000.
- Check drawn on "Ren" Company's account and payable to vendor dated and recorded April 1, 2018. The vendor cannot be located; P250,000.
What is the adjusted balance of "Cash and Cash Equivalents" on December 31, 2018?
a. P3,150, b. P3,000, c. P2,750, d. P2,700,
Solution: Unadjusted Checkbook Balance - ₱ 2,500,000- Postdated Customer's Check -100, Undelivered Check 300, Postdated Check 50, Stale Check 250, Total Cash and Cash Equivalent - ₱^ 3,000,000-
- The petty cash fund of "Lancelot" Company showed the following items:
Currency and coins - ₱ 10,000- Petty cash vouchers Supplies 1, Postage 3, Transportation 4, Advances to employees 3, Check drawn by “Lancelot” payable to the order of the petty cash custodian 5, Postage stamp 1, An envelope containing currency as a gift for a newly wed employee 3,
The petty cash custodian’s accountability is P30,000.
Q1. What is the adjusted balance of the petty cash fund? a. P18, b. P17, c. P16, d. P15,
Q2. How much is the Cash Short or Over?
