CASH AND CASH EQUIVALENTS EQUIVALENTS QUIZZER #2
1. On December December 1, 2011, 2011, Denmar Denmark k Corp. establi established shed an impres imprestt petty cash fund fund of P 9,000 by writin a check drawn aainst its eneral checkin account. On December !0, the fund contained the followin"
Currency and coins $eceipts for miscellaneous e%penses $eceipts for office supplies 'n(elope containin contributions of employees $eceipts for transportation
P !,#00 1,200 2,&00 )00 !00
On December !1, the company wrote a check to replenish the fund. *he amount of replenishment is 2. China Corp. Corp. established established a petty cash fund of P #,000 #,000 for incidental incidental e%penses e%penses on +une 1, 2011. t the end of the month, the count of cash on hand indicated that P )-# remained in the fund. sortin of the petty cash (ouchers disclosed the followin e%penses had been incurred durin the month" Office supplies Postae
P !2 1,-&0
*ransportation /iscellaneous
P 1,!20 &!&
*he abo(e data indicate that there is a. Cash shortae of P # b. Cash o(erae of P #
c. Cash shortae of P -20 d. Cash o(erae of P -20
!. +apan +apan Co. had the the followin followin balances balances at Decemb December er !1, 2011 2011"" Cash in checkin account Cash in money market account *reasury bill, purchased 1212011 maturin 22&2012 *reasury bill, purchased !12011 maturin 22&2012
P !#0,000 2#0,000 &00,000 #00,000
+apan Companys policy is to treat as cash eui(alents hihly3liuid hihly3liuid in(estments with a maturity of three t hree months or less when purchased. *he amount +apan Company should repost as cash and cash eui(alents in its Dec. !1, 2011 balance sheet is . t Decembe Decemberr !1, !1, 201 2011 4eliu 4elium m Co. Co. had the follow followin in balanc balances es in the accoun accounts ts it maintains in Citibank"
Checkin account 51!9&&) Checkin account 51!9&&/oney market account 903day certificate of deposit, due 8ebruary 2&, 2012 1&03day certificate of deposit, due /arch 1#, 2012
P 1-#,000 610,0007 2#,000 #0,000 &0,000
*he amount to be reported as Cash and Cash 'ui(alents: on 4eliums Dec. !1, 2011 balance sheet is #. 8ollowin were the account balances of Potter Co. at December !1, 2011" Cash on hand Cash in current and sa(ins accounts Cash set aside for plant e%pansion 6e%pected for payment in 20127
P 1&-,#00 !,!-#,000 2,00,000
Cash in current and sa(ins accounts include P 900,000 as holdout aainst short3 term loan arranements. *here are no leal restrictions as to withdrawal by Potter on these holdouts. Cash reported in Potters December !1, 2011 balance sheet at" ). *he balance sheet of laska Co. as of December !1, 2011 shows Cash of P 1-,#00. ;t was found to include the followin items" Postal money orders from customers
P 2,00 !,200 )00 1,&00 #00 )00 ),000 1,000
*he correct cash balance is -. 'urope Corp. pro(ided the followin information" $econciled balance in '%port 4ank checkin account $econciled balance in Citibank checkin account 4alance in 'uitable PC; bank sa(ins account 903day Certificate of deposit Petty cash fund Postae stamps 'mployees ;O> 'mployees tra(el ad(ances Cash on hand 6undeposited sales receipts7 *ra(elers checks
P 19),0-# 6,0007 2&-,#00 !0,000 #,000 1,000 1,2#0 1),00 !1,000 ),000
*he amount to be reported as cash on 'uropes balance sheet is &. $uss Corp. had the followin items on December !1, 2011" <=8 checks =a(ins account Postae stamps Postdated checks ;O>s
P 2,000 -#,000 )00 #,00 1,200
Cash on hand Cash in sinkin fund *ra(el ad(ances 4ank draft *ra(elers checks
*he total amount included in Cash balance at December !1, 2011 is
P !,000 #0,000 ,000 10,000 &,000
9. *urkey Co.s checkbook balance on December !1, 2011, was P #,000. ;n addition, *urkey held the followin items in its safe on that date" Check payable to *urkey Co., dated +anuary 2, 2012, in payment of a sale made in December 2011, not included in December !1 checkbook balance Check payable to *urkey Co., deposited December 1# and included un December !1 checkbook balance, but returned by bank in December !0 stamped <=8:. *he check was redeposited on +anuary 2, 2012, and cleared on +anuary 9 Check drawn on *urkey Co.s account, payable to a (endor, dated and recorded in *urkeys books on December !1 but not mailed until +anuary 10, 2012
P 2,000
#00
!00
*he proper amount to be shown as Cash on *urkeys balance sheet at December !1, 2011 is 10. *he cash account of tlanta Corp. has a balance of P 9),000 on December !1, 2011. ?our re(iew of the cash transactions recorded in December re(ealed the followin Cash receipts included customers checks for P ,000 dated +anuary 10, 2012. Check of P 10,000 payable to 4ayou Co. *he check dated 122! was deli(ered to 4ayou on 122 had not been paid by the bank as of 12!1 Check of P -,000 payable to ?ork Co. *he check was dated 1229 but still undeli(ered as of 12!1 *he correct cash balance at December !1, 2011 is •
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11. *he unaudited balance sheet of @awk Corp. at December !1, 2911 reported in the current asset section Cash of P 2#,000. re(iew of the cash transactions disclosed the followin" Cash includes P &0,000 set aside for the purchase of new euipment. Checks totalin P ),000 payable to suppliers were mailed and recorded on December !0, 2011 but these checks cleared the bank in +anuary 2012. Cash includes P !,000 check recei(ed from a customer on December 29, 2011. *he check is dated +anuary !, 2012. • •
•
*he correct cash balance at December !1, 2011 is 12. $eency Corp. had the followin transactions in its first year of operations" =ales 690A collected in first year7 4ad debt written3off Disbursements for cost and e%penses Disbursements for income ta%es Purchases of fi%ed assets Depreciation of fi%ed assets Proceeds from issuance of ordinary share Proceeds from short3term borrowins Payments on short3term borrowins Bhat is the cash balance at December !1 of the first year
P 2,000,000 )0,000 1,!00,000 90,000 #0,000 90,000 )00,000 100,000 &0,000
