Cash and Cash Equivalents

1. In determining the amount to be reported on its December 31, 2016 balance sheet as cash and cash
equivalents, the following items were identified:
 Undeposited receipts (currency and coins on hand), P50,000
 Postal money orders, P90,000
 Traveler’s checks on hand, P120,000
 Money market fund held at BPI that permits Apple Company to write – checks on this fund,
P400,000
 Utility deposit receipt (made to Electron Company), P100, 000
The amount reported by Apple Company under cash and cash equivalents is

2. In determining the amount to be reported on its December 31, 2016 balance sheet as cash and cash
equivalents, the following items were identified:
 BPI demand deposit account, P200,000
 Travel advances of P150,000 for executive officer’s travel for the first quarter of next year
 Petty cash fund (includes P5,000 in expense receipts) P25,000
 BDO cash fund in the amount of P200,000 is restricted for the acquisition of machinery to be
made in 2017
The amount reported by Bruno Company under cash and cash equivalents is

3. In determining the amount to be reported on its December 31, 2016 balance sheet as cash and cash
equivalents, the following items were identified:
 Correct cash balance in BPT, restricted for payroll payment, P500,000
 Special account in BDO used as a bond sinking fund, P250,000
 Treasury warrants, P100,000
 Check from a customer on hand dated January 2, 2017; P90,000
 Checks to suppliers on hand dated December 29, 2016; P60,000
The amount reported by Camille Company under cash and cash equivalents is

4. In determining the amount to be reported in its December 31, 2016 balance sheets as cash and cash
equivalents, the following items were identified:
 MBTC current account, per ledger balance, company’s checks of P90,000 are outstanding as of
December 31, 2016 P960,000
 BPI current account, per bank statement, company’s checks of P12,000 are outstanding as of
December 31, 2016 P750,000
The amount reported by Damien Company under cash and cash equivalents is

5. In determining the amount to be reported on its December 31, 2016 balance sheets as cash and
cash equivalents, the following items were identified:
 BDO checking account, include a P50,000 compensating balance
Maintained in relation to an existing short-term loan which is not
restricted as to withdrawal P800,000
 AUB checking account, includes a P100,000 compensating balance
Maintained in relation to an existing long-term loan which is legally
restricted as to withdrawal P1,000,000
 Bank of Commerce checking account, in which the company is required to maintain a minimum
average balance of P120,000 at all times to insure future credit availability P1,000,000
The amount reported by Eva Company under cash and cash equivalents is
6. Fred Company has the following investments of excess cash as of December 31, 2016
 3-month treasury bill, P200,000
 6-month treasury bill, maturing on February 28, 2017, P300,000
 1-year treasury bill, acquired on December 15, 2016, maturing on February 28, 2017, P400,000
 90-day money market placement, P200,000
 30-day certificate of time deposit, P240,000
 180-day certificate of time deposit, P180,000
The amount that may be included by Fred Company as cash and cash equivalents in its December
31, 2016 statement of financial position is

7. Gemma Company has the following investments of excess cash as of December 31, 2016
 8% one-year term bonds, issue date February 1, 2016 acquired on October 1, 2016, P400,000
 9% one-year term bonds, issue date March 1, 2016 acquired on December 1, 2016, P350,000
 100,000, ordinary shares acquired on December 20, 2016, P300,000
 5,000, 8%, P50 par value redeemable preferred shares acquired on November 1, 2016. The
redemption date will be on April 1, 2017.
The amount that may be included by Gemma Company as cash and cash equivalents on its
December 31, 2016 balance sheet is

8. In determining the amount to be reported on its December 31, 2016 balance sheet as cash and cash
equivalents, the following items were identified:
 Philippine National Bank
CA-000-T722W-000111000 P4,660,000
CA-000-T722W-000112000 (P220,000)
 Standard Chartered Bank (P70,000)
The amount reported by Henry Company under cash and cash equivalents is

9. In determining the amount to be reported on its December 31, 2016 balance sheet as cash and cash
equivalents, the following items were identified:
 Manhattan Bank, opened in December 17, 2016 $10,000
 Montreal Bank, opened in December 23, 2016 $20,000
 Urban Bank (a closed bank) P100,000
 The dollar account in Manhattan Bank is currently restricted as to withdrawal December 23,
P48; December 31, P50; January 8, 2017, P51 (date the financial statements were prepared)
The amount reported by Irma Company under cash and cash equivalents is

10. The following is shown the accounting records of Matthew Company:

Dec. 31 Jan. 1
Cash ? P 185,000
Accounts receivable 250,000 320,000
Merchandise inventory 285,000 215,000
Accounts payable 160,000 120,000
Total sales and cost of goods sold for the year were P1,900,000 and P1,350,000, respectively. All
sales and purchases were made on credit. Various operating expenses P270,000 were paid in cash.
There were no other pertinent transactions affecting the cash balance.
The cash balance on December 31, 2016 of Matthew Company is
11. Nancy Company reported a cash and cash equivalent balance of P5,000,000 in the initial draft of its
2016 financial statements. An analysis of the composition revealed the following items:
 The cash on hand account include receipts totaling to P450,000 which represents collection
from January 2 to 8 of 2017.
 The balance was net of an overdraft in its BDO account of P200,000. Nancy Company does not
have any other account with BDO other than this checking account.
 Nancy company has an existing loan arrangement with RCBC. The loan agreement included a
stipulation that Nancy Company:
Included in the balance were two investments in treasury bonds, both of which are maturing on
February 1, 2017: P500,000 was acquired on May 15, 2016 while P700,000 was acquired on
November 30, 2016.
 The balance included the Philippine peso equivalent of Nancy Company’s dollar account having
a balance of $30,000. The rate used to translate it was P45, the exchange rate at January 8, 2017
when the schedule was prepared. The exchange rate at December 31, 2016 was P49.50
The amount reported by Nancy Company under cash and cash equivalent is

12. On December 31, 2016, Omar Company’s cash and cash equivalent account balance were composed
of the following items:
Cash on hand 200,000
Petty cash fund 20,000
HSBC, current account 1,000,000
BPI, current account 850,000
SBC, current account (90,000)
PNB, 60-day time deposit 150,000
The examination of the above-mentioned items revealed the following:
 The cash on hand account includes a customer’s check of P30,000 dated January 2, 2017 and a
P25,000 postal money order
 The petty cash fund includes unreplenished vouchers for P10,000, an employee check for P8,000
dated January 15, 2017 and a P5,000 company check in bearing the name of the petty cash
custodian
 Included among the checks drawn by Omar Company against its HSBC current account and
recorded in December 2016 are:
Check no. 1001208001 written and dated December 23, 2016 which was delivered to the payee
on January 6, 2017, P120,000
Check no. 10001250001 written December 28, 2016 dated January 12, 2017 which was handed
to the payee on December 29, 2016, P190,000
 Th BPI current account was composed of the following items:
Current account no. 2908356 1,000,000
Current account no. 2908357 (150,000)
 The PNB time deposit was set aside for the acquisition of a manufacturing equipment to be
purchased by the end of March 2017
The amount to be reported as cash and cash equivalent at December 31, 2016 is