Problem 7 – 12:

Abigail Company provided the following information at year – end:

Cash on hand 500,000

Cash in bank 4,000,000
Petty cash fund 50,000
Commercial paper with maturity of 2 months 1,000,000
Treasury bill with maturity of 6 months 2,000,000
Post-dated customer checks 200,000
What total amount should be reported as “cash and cash equivalents”?

a) 7,550,000
b) 5,550,000
c) 4,550,000
d) 5,750,000

Problem 7 – 13:

Affable Company provided the following information at year – end comprising the cash account:

Cash in bank – demand deposit account 5,000,000

Cash on hand 400,000
Postage stamps unused 5,000
Certificate of time deposit with maturity of 3 months 1,500,000
Money Order 50,000
Manager Check 100,000
Traveller Check 1,000,000
Post-dated customer check 500,000

What total amount should be reported as “cash” at year – end?

a) 8,050,000
b) 7,050,000
c) 6,550,000
d) 6,450,000
Problem 7 – 14:

Paula Company provided the following data on December 31, 2016:

Check book balance 5,000,000

Bank Statement Balance 4,000,000
Check drawn on Paula’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 total amount should be reported as cash and cash equivalents on December 31, 2016?

a) 8,000,000
b) 8,500,000
c) 7,500,000
d) 6,000,000

Problem 7 – 15:

Joana 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
Time deposit 2,000,000
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 1,500,000

The petty cash fund included unreplenished December 2016 petty cash expense vouchers of P
5,000 and employee IOU of P 5,000. The cash on hand included a P 100,000 check payable to
the entity dated January 31, 2017.

What total amount should be reported as cash and cash equivalents on December 31, 2016?

a) 6,940,000
b) 8,940,000
c) 7,940,000
d) 7,440,000
Problem 7 – 16:

At year – end, Rabid Company reported a cash balance of P 5,250,000 which included the
following:

Petty cash fund 50,000

Undeposited receipts, including a post-dated customer
check of P 200,000 1,300,000
Cash in bank 2,500,000
Cash in sinking fund 1,000,000
Vouchers paid out of collections, not yet recorded 250,000
IOUs signed by employees 150,000

Total 5,250,000