Cash and Cash Equivalents 1. Julius Co. had the following account balances on Dec. 31, 2021: Cash in bank 5,200,000 Cash on hand 350,000 Cash fund set aside for dividend payable in 2022 200,000 Cash fund set aside for land acquisition in 2022 1,500,000 The cash in bank included P250,000 compensating balance against short-term borrowing and is not legally restricted as to withdrawal. The cash on hand included a check of P100,000 payable to the entity dated January 3, 2022. What amount should be reported as cash under current assets on the December 31, 2021? 2. Annibelle Company provided the following account balances on December 31, 2021: Cash in bank 2,250,000 Cash on hand 125,000 Cash restricted for addition to plant expected to be disbursed in 2022 1,600,000 Cash in money market account 750,000 Treasury bill purchased Nov. 1, 2021 maturing January 31, 2022 3,500,000 Treasury bill purchased Dec. 1, 2021 maturing March 31, 2022 2,000,000 Cash in bank included P600,000 of compensating balance against short-term borrowing arrangement. The compensating balance is not legally restricted as to withdrawal. What total amount should be reported as cash and cash equivalents on Dec, 31, 2021? 3. Karen Co. provided the following information on December 31, 2021: Cash on hand 500,000 Petty cash fund 20,000 Security Bank current account 3,000,000 BDO current account no. 1 400,000 BDO current account no. 2 (50,000) BSP treasury bill – 60 days 4,000,000 BPI time deposit – 30 days 1,000,000 The cash on hand included a customer postdated check of P100,000 and postal money order of P40,000. A check for P300,000 was drawn against Security Bank account, dated January 15, 2022, delivered to the payee and recorded December 31, 2021. The BPI time deposit is set aside for acquisition of equipment. What total amount of cash and cash equivalents should be reported on December 31, 2021? 4. Joan Co. prepared the following bank reconciliation dated June 30 of the current year. Balance per bank 9,800,000 Deposit in transit 400,000 Outstanding check (1,400,000) Balance per book 8,800,000 There were total deposits of P6,500,000 and charges for disbursements of P9,000,000 for July per bank statement. All reconciliation items on June 30 cleared the bank on July 31. Deposits in transit totaled P900,000 and checks outstanding amounted to P1,000,000 on July 31. What is the amount of cash in bank to be reported on July 31? 5. Terra Co, used the imprest system in accounting for petty cash fund. The fund had an imprest balance of P20,000 at year-end which consisted of currency and coins P1,000, employees’ advances P3,000, currency in envelope marked “collections for Christmas party” P2,000, check drawn by Terra Company payable to petty cashier representing salary P14,000. What is included in the entry to adjust the petty cash fund at year-end? 6. Delta Corp. has supplied you with the following list of its bank accounts and cash at Dec. 31, 2018: Checking account (compensating balance of P15,000 without restriction P 48,000 Savings Accounts, 2% 30,000 Certificate of deposit, 5 months 10% due April 20, 2019 60,000 Money market (30-day certificate), current rate, 9.75% 40,000 Payroll account 20,000 Certificate of deposit, 3 months 10% due Feb 15, 2019 75,000 Petty cash 1,500 Total P 274,500 =========== What should be the balance to be reported as “Cash and Cash equivalents” in the December 31, 2018 statement of financial position of Delta Corp? 7. Following were the account balances of Born Co. at Dec. 31, 2018: Cash on hand P 187,500 Cash in current and savings accounts 3,375,000 Cash set aside for plant expansion (expected for payment in 2019) 2,400,000 Cash in current and savings accounts includes P900,000 as holdout against short-term loan arrangements. There are no legal restrictions as to withdrawal by Born on these holdouts. What is the total cash that should be reported in the current assets section of Born’s Dec 31, 2018 statement of financial position? 8. V Co. had the following cash balance at December 31, 2018: Undeposited coins and currency P 35,000 Unrestricted demand deposits 1,450,000 Company checks written (and deducted from the demand deposits amount) but not scheduled to be made until Jan. 2 270,000 Time deposits restricted for use (expected use in 2019) 3,000,000 In exchange for a guaranteed line of credit, V has agreed to maintain a minimum balance of P150,000 in its unrestricted demand deposits account. How much should V report as “Cash” in its December 31, 2018 statement of financial position? 9. R Co. had the following transactions all throughout the year 2018 which is its first year of operations: Sales (90% collected in first year) P 1,500,000 Bad debt written-off 60,000 Disbursements for costs and expenses 1,200,000 Disbursements for income taxes 90,000 Purchases of fixed assets 400,000 Depreciation on fixed assets 80,000 Proceeds from issuance of ordinary share 500,000 Proceeds from short-term borrowings 100,000 Payments on short0term borrowings 50,000 What is the cash balance at December 31, 2018? 10. In preparing its bank reconciliation at December 31, 2018, S Company has the following available data: Balance per bank statement, 12/31/2018 P 38,075 Deposit in transit, 12/31/2018 5,200 Outstanding checks, 12/31/2018 6,750 Amount erroneously credited by bank to S account, 12/28/2018 400 Bank service charges for December 75 How much is S adjusted cash in bank balance at December 31, 2018?
