Cash and Cash

Equivalents
SLIDESMANIA

Prepared by Erin Julia Balanag

 The following were taken from the records of SML Co. as of December 31,20x1:

Check drawn but not yet issued to payees P 120,000

Customer’s checks dated January 15,20x2 35,000

Customer’s check dated December 31,20x1 40,000

SML’s Check dated Jan. 15, 20x2 already mailed to payee 16,000

Cash on Hand 130,000

Employees’ checks representing unclaimed salaries, 14,000

held by treasurer

Petty cash fund (fully replenished) 20,000

SLIDESMANIA
 How much of the items listed will be included in SML’s Dec. 31,20x1 cash?

Check drawn but not yet issued to payees ₱ 120,000

Customer’s check dated December 31,20x1 40,000

SML’s Check dated Jan. 15, 20x2 already mailed to payee 16,000

Cash on Hand 130,000

Employees’ checks representing unclaimed salaries, held by treasurer 14,000

Petty cash fund (fully replenished) 20,000

Total of Items listed under Cash ₱ 340,000

SLIDESMANIA
 Zorba Co. had the following balances at December 31, 20x2:

Cash in checking amount 350,000

Cash in money-market account 250,000

Treasury bill, purchased 12/1/x2, maturing 2/28/x3 800,000

Treasury bond, purchased 3/1/x2, maturing 2/28/x3 500,000

SLIDESMANIA
 What amount should Zorba Co. report as cash and cash equivalents in Dec. 31,20x2
statement of financil position?

Cash in checking amount 350,000

Cash in money-market account 250,000

Treasury bill, purchased 12/1/x2, maturing 2/28/x3 800,000

Total Cash and Cash equivalents 1,400,000

SLIDESMANIA
 Jackson Company had the following cash balances at December 31, 20x2:

Cash in banks P 375,000

Petty cash fund (all in bills and coins) 5,000

Cash in banks includes P125,000 of compensating balances against short-

term borrowing arrangements at December 31, 2002. The compensating

balances are legally restricted as to withdrawal by Jackson. In the current asset

section of Jackson’s December 31, 2002, balance sheet.

SLIDESMANIA
 What total amount should be reported as Cash?

Cash in banks ( 375,000 – 125,000 ) ₱ 250,000

Petty cash fund (all in bills and coins) 5,000

Total Cash ₱ 255,000

SLIDESMANIA
 The December 31, 2017 trial balance of Agee Company includes the following accounts:

Petty cash fund 70,000

Current account - Metro Bank 4,000,000

Current account - BPI (overdraft) (250,000)

120-day Money market placement – RCBC 1,000,000

Time deposit- PNBRCBC 2,000,000

Additional information:

● The petty cash fund includes unreplenished December 2017 petty cash expense vouchers for P15,000 and an

employee check for P5,000 dated January 31, 2018.

● A check for P100,000 was drawn against Metro Bank current account dated and recorded December 27, 2017 but

delivered to payee on January 10 2018. REVERTED BACK PO MAAM

SLIDESMANIA

● The PNB time deposit is set aside for land acquisition in early January 2018
 What total amount should be reported as Cash?

Petty cash fund (70,000 – 15,000-5,000) 50,000

Current account - Metro Bank (4,000,000 + 100,000) 4,100,000

Total Cash ₱ 4,150,000

SLIDESMANIA
Thank you!
SLIDESMANIA