1. Northern Co.

provided the following information about the composition of its cash on December
31, 2014:

 Commercial savings account of P600,000 and a commercial checking account balance of

P900,000 are held at BPI.
 Money market fund account held by Citibank that permits Northern to write checks in this
balance, P5,000,000.
 Travel advances of P180,000 for executive travel for the first quarter of next year (employee to
pay through salary deduction.)
 A separate cash fund in the amount of P1,500,000 is restricted for the retirement of long term
assets.
 Petty cash fund P10,000.

2. Minerva Company had the following transactions all throughout the year 2014 which is its first
year of operations:

Sales (90% collected in first year) P1,500,000

Bad debt written-off 60,000
Disbursements for cost 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 500,000
share
Proceeds from short-term borrowings 100,000
Payments on short-term borrowings 50,000