Problem Solving - De Paz.docx - Cash and Cash Equivalent Problem 1 Timex Company reported petty cash fund which comprised the following Coins and

Problem Solving - De Paz.docx - Cash and Cash Equivalent...

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Cash and Cash Equivalent Problem 1 Timex Company reported petty cash fund which comprised the following:Coins and currency3,300Paid vouchers:Transportation600Gasoline400Office Supplies500Postage stamps300Due from employees 1,2003,000Manager’s check returned by the bank marked “NSF”1,000Check drawn by the entity to the order of petty cash custodian2,700What is the correct amount of petty cash fund for statement presentation purposes? a.10,000b.7,000c.6,000.d.9,000Answer: C Coins and currency 3,300 Check drawn by the entity to the order of petty cash custodian 2,700 Correct amount of petty cash 6,000 Problem 2 At year-end, Myra Company reported cash and cash equivalents which compromised the following:Cash on hand500,000Demand deposit4,000,000Certificate of deposit2,000,000Postdated customer check300,000Petty cash fund50,000Traveler’s check 200,000Manager’s check100,000Money order150,000What total amount should be reported as “cash” at year end? Cash on hand 500,000 Demand deposit 4,000,000 Petty cash fund 50,000 Traveler’s check 200,000 Manager’s check 100,000 Money order 150,000 Total cash 5,000,000 Problem 3 On December 31, 2018, West Company had the following cash balances:Cash in bank1,800,000Petty cash fund (all funds were reimbursed at year-end) 50,000Time deposit (due February 1, 2019) 250,000Time deposit in bank closed by BSP1,000,000Cash in bank included 600,000 of compensating balance against short term borrowing arrangement on December 31 2018. The compensating balance is legally restricted as to withdrawal.On December 31 2018, What total amount should be reported as cash and cash equivalents? Cash in bank (1,800,000-600,000 compensating balance) 1,200,000 Petty cash fund (all funds were reimbursed at year-end) 50,000 Time deposit (due February 1, 2019) 250,000 Total cash 1,500,000
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Problem 4 Thor Company provided the following data on December 31 2018:Checkbook Balance4,000,000Bank Statement balance5,000,000Check drawn on Thor’s account, payable to supplier, dated and recorded on December 31 2018 but not mailed until January 15, 2019 500,000Cash in sinking fund2,000,000On December 31 2018, what amount should be reported as “cash” under current assets? Checkbook Balance 4,000,000 Undelivered check drawn on Thor’s account 500,000 Adjusted cash balance 4,500,000 Problem 5 Pygmalion Company had the following account balance on December 31, 2018:Cash in bank – current account5,000,000Cash in bank – payroll account1,000,000Cash on hand 500,000Cash in bank –restricted account for building constructionExpected to be disbursed in 2019 3,000,000Time deposit purchased December 15, 2016 and due March 15, 2019 2,000,000The cash on hand includes a P200,000 check payable to Pygmalion, dated January 15, 2019.What is the cash and cash equivalent balance on December 31, 2018? a.6,300,000b.8,300,000.c.6,500,000d.8,700,000Answer: B Cash in bank – current account 5,000,000 Cash in bank – payroll account 1,000,000 Cash on hand (500,000 - 200,000 postdated customer check) 300,000 Time deposit 2,000,000 Total cash and cash equivalents 8,300,000
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Receivables Problem 1
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