Cash and Cash Equivalents (Basic a.

4,500,000
b. 5,500,000
Problems)
c. 3,500,000
Problem 1
d. 6,500,000
Travinia Company had the following balances on Problem 4
December 31, 2017;
Cash in Checking Account 350,000 At year end, Myra Company reported cash hand cash
Cash in Money Market Account 750,000 equivalents which comprised the following:
Treasury bill, purchased 3,500,000 Cash on hand 500,000
November 1,2017 maturing Demand deposit 4,000,000
January 31,2018 Certificate of Deposit 2,000,000
Time Deposit Purchased 4,000,000 Postdated customer 300,000
December 1, 2017 maturing check
march 31, 2018 Petty cash fund 50,000
Traveler’s Check 200,000
Manager’s Check 100,000
What amount should be reported as cash and cash
Money Order 150,000
equivalents on December 31, 2017?
a. 1,100,000
b. 3,850,000 What total amount should be reported as “cash” at
c. 4,600,000 year- end?
d. 8,600,000
a. 7,000,000
Problem 2 b. 4,800,000
Pygmalion Company had the following balances on c. 6,800,000
December 31, 2017; d. 5,000,000
Cash in bank- Current account 5,000,000
Problem 5
Cash In bank Payroll account 1,000,000
Cash on hand 500,000
Everlast company reported the following information
Cash in bank- restricted account for 3,000,000
at year-end:
building construction expected to be
disbursed in 2018
* Share Investments of P1,000,000 that are very
Time Deposit, Purchased December 2,000,000
actively traded in the stock market
15, 2017 and due March 15, 2018
*Government Treasury Bills of P2,000,000 with a 10
The Cash on hand included a P200,000 check payable year term but purchased on December 31 at which
to Pygmalion, dated January 15,2018. time they had two months to go until maturity
What amount should be reported as cash and cash
equivalents on December 31, 2017? * Cash of P3,400,000 in the form of coin, currency,
a. 6,300,000 saving account and checking account
b. 8,300,000
c. 6,500,000 *Commercial papers of P1,500,000 with a term nine
d. 8,700,000 months but purchased December 31 at which time
had three months to go until maturity.
Problem 3
Thor Comp provided the following data on December 1. What total amount should be reported as
31, 2017; cash?
Check Balance 4,000,000 a. 3,400,000
Bank Statement balance 5,000,000 b. 4,900,000
Check Drawn on Thor’s Account, 500,000 c. 4,400,000
payable to supplier, dated and d. 5,400,000
recorded on December 31, 2017
but not mailed until January 15, 2. What total amount should be reported as cash
2018 equivalents?
Cash sinking fund 2,000,000 a. 2,000,000
b. 1,500,000
On December 31, 2017, what amount should be c. 3,500,000
reported as “cash” under current assets? d. 4,500,000
Problem 6 for P200,000 still
outstanding
Burr Company had the following account balances on Deposit in bank closed by 500,000
December 31, 2017; BSP
Cash in bank 2,250,000 Vouchers paid out of 150,000
Cash on hand 125,000 collections, not yet
Cash restricted for 1,600,000 recorded
addition to plant and IOUs signed by 30,000
expected to be employees, taken from
disbursed collections
Cash in bank included P600,000 of compensating 4,700,000
balance against short term borrowing arrangement.
The compensating balance is not legally restricted to What amount should be reported as cash on
withdrawal. December 31, 2017?
a. 3,720,000
On December 31, 2017, what amount of total cash b. 3,900,000
should be reported under current assets? c. 4,220,000
a. 1,775,000 d. 4,020,000
b. 2,250,000
c. 2,375,000 Problem 9
d. 3,975,000
Ral Company reported the checkbook balance on
Problem 7 December 31, 2017 at P5,000,000 and held the
following items on same date:
On December 31, 2017, West company had the Check payable to Ral, 2,000,000
following cash balances dated January 2, 2018 in
Cash in bank 1,800,000 payment of a sale made
Petty cash fund- all funds 50,000 in December 2017, not
were reimbursed on included in December 31
12/31/2017 checkbook balance
Time deposit due 250,000 Check payable to Ral, 500,000
February 1,2018 deposited December 15
and included in
Cash in bank included P600,000 of compensating December 31 checkbook
balance against short term borrowing arrangement on balance, but returned by
December 31, 2017. The compensating balance is bank on December 30
legally restricted as to withdrawal. stamped “NSF” . The
check was redeposited
On December 31, 107, what total amount should be on January 2, 2018 and
reported as cash and cash equivalent? cleared on January 9,
a. 1,850,000 2018
b. 1,250,000 Check drawn on Ral’s 300,000
c. 2,100,000 account, payable to a
d. 1,500,000 vendor, dated and
recorded in Ral’s book on
Problem 8 December 31, 2017 but
not mailed until January
ABC Company reported cash account per ledger on 10, 2018
December 31,2017 at P4,700,000 which consisted of Certificated of time 1,000,000
the following: deposit
Petty cash fund 20,000
Undeposited receipts, 1,500,000 What amount should be reported as cash on
including a postdated December 31, 2017?
customer check for a. 4,800,000
P100,000 b. 5,300,000
Cash in bank per bank 2,500,000 c. 6,500,000
statement with a check d. 5,800,000
 An employee’s check 3,000
returned by the bank for
insufficiency of funds
A sheet of paper with 5,000
names of several
Problem 10 employees together with
contribution for a birthday
Timex Company reported petty cash fund which gift of a co-employee.
comprised the following: Attached to the sheet of
Coins and currency 3,300 paper is a currency of
Paid vouchers: 600
Transportation What amount of petty cash fund should be reported in
400 the statement of financial position?
Gasoline a. 42,000
Office 500 b. 27,000
supplies c. 37,000
300 d. 22,000
Postage stamps
Due 1,200 3,000
from employees
Manager’s check 1,000
returned by bank
marked NSF
Check drawn by the 2,700
entity to the order
of petty cash
custodian

What is the correct amount of petty cash fund for

statement presentation purposes?
a. 10,000
b. 7,000
c. 6,000
d. 9,000

Problem 11

Liwanag Company reported an imprest petty cash

fund of P50,000 with the following details:

Currencies 20,000
Coins 2,000
Petty cash vouchers : 3,000
Gasoline Payments
for delivery equipment
Medical supplies for 1,000
employees
Repairs of office 1,500
equipment
Loans to employees 3,500
A check drawn by the 15,000
entity payable to the
order of Grace dela Cruz,
petty cash custodian,
representing her salary