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    The document provides accounting information for the Ursula Company as of December 31, 2018. It lists the company's cash and cash equivalent accounts, including cash on hand, bank accounts, time deposits, and other short-term assets. To calculate total cash and cash equivalents, certain amounts were excluded from cash on hand based on timing of deposits clearing or checks clearing after year-end. The solution determines the total amount of cash and cash equivalents is P383,000.

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    some notes in accounting

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    The document provides accounting information for the Ursula Company as of December 31, 2018. It lists the company's cash and cash equivalent accounts, including cash on hand, bank accounts, time deposits, and other short-term assets. To calculate total cash and cash equivalents, certain amounts were excluded from cash on hand based on timing of deposits clearing or checks clearing after year-end. The solution determines the total amount of cash and cash equivalents is P383,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    7 views3 pages

    7

    Uploaded by

    Lazy Leath
    The document provides accounting information for the Ursula Company as of December 31, 2018. It lists the company's cash and cash equivalent accounts, including cash on hand, bank accounts, time deposits, and other short-term assets. To calculate total cash and cash equivalents, certain amounts were excluded from cash on hand based on timing of deposits clearing or checks clearing after year-end. The solution determines the total amount of cash and cash equivalents is P383,000.

    Copyright:

    © All Rights Reserved
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    of 3

    PROBLEM 1-2

    The following information has been extracted from the accounting records of the URSULA COMPANY at

    December 31, 2018:

    a. Cash on hand (see note below) P230,OOO

    b. Impukan Bank savings account (the required

    c. minimum Monthly Average Daily Balance is PIO,OOO) 9,500

    c.364-day Treasury bills purchased March 1, 2018 400,000

    d. Petty cash fund (see note below) 20,000

    e. Tipid Bank current account (see note below) 160,000

    f. Time deposit placements:

    Date Term

    Dec. 15, 2018 30 days 30,000

    Oct. 31, 2018 90 days 40,000

    Nov. 30, 2018 180 days 25,000

    g. Employee travel advances 7,000

    h. cash in bond sinking fund 500,000

    i. customers note receivable 45,000

    j. Postage stamps 2,400

    The following are included in cash on hand:

    • A customer check for returned by the bank December 28, 2018. It was redeposited and cleared the

    batik on January 2, 2019.

    • A customer check for P75,000 dated January 3, 2019, receiv December 27, 2018.

    • PHLPost money orders received from customers, P30,000

    The petty cash fund consists of the following:

    Currency and coins P13,500


    IOUs from officers and employees 3,000

    Unreplenished petty cash disbursements 1,500

    Currency in envelope with the notation:

    "We were Bang Quay's coworkers. Words may

    not be adequate to express how sorry we feel.

    Please accept our heartfelt sympathies on the loss ofyour loved one." 1.500

    P20.ooo

    The following information pertains to Tipid Bank current account:

    • A check for P13,000 was dated and recorded on December 29, 2018, but was delivered to payee

    on January 5, 2019.

    • A check for P5,000 dated January 10, 2019, payable to a supplier was recorded and released to

    payee on December 19, 2018. Tipid Bank requires current account depositors to maintain a

    monthly average daily balance of P50,000.

    What total amount should be recorded as cash and cash equivalents on December 31, 2018?

    A. P383,000 C. P378,OOO

    B. P373,500 D. P408,OOO

    Solution 1-2

    Cash on hand (230,000-P43,000-P75,000) P112,OOO

    Impukan Bank savings account 9,500

    Petty cash fund 13,500

    Bank current account (P160,OOO + P13,OOO + PS,OOO) 178,000

    Time deposits:

    30 days 30,000

    90 days 40,000

    Total cash and cash equivalents P383,000

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