15. Statement of Financial Position Presentation: Cash and Other Related Items Genius Company is preparing its 2016 financial statements; the accounting period ends December 31. The following items, related to cash, are under consideration. You have been asked to indicate how each item should be reported on the statement of financial position and to explain the basis for your responses. a. A P900 check received from a customer, dated February 1, 2017, is on hand. b. A customer's check was included in the December 20 deposit. It was returned by the bank stamped NSF. No entry has yet been made by Genius to reflect the return. c. A P20,000 note receivable on which P1,000 of interest accrued to December 31 has just been recorded by debiting interest receivable and crediting interest revenue. The chief accountant proposes to report the P20,000 as cash in bank. d. Genius has a P200 petty cash fund. As of December 31, the fund cashier reported expense vouchers covering various expenses in the amount of P167 and cash of P32. e. Postage stamps that cost P30 are in the cash drawer. f. A cashier's check of P200 payable to Genius Company is in the cash drawer; it is dated December 29. g. Three checks, dated December 31, 2016, totaling P465, payable to vendors who have sold merchandise to Genius Company on account, were not mailed by December 31, 2016. They have not been entered as payments in the check register and ledger. h. Prior to December 30, Genius Company left a note that matures December 31, 2016, with its bank for collection. The note is for P20,000 and bears interest at 9 percent, having been outstanding for three months. As yet, Genius has not heard from the bank about collection but is confident of a favorable outcome because of the hieh credit rating of the maker of the note. The company plans to include the P20,000 plus interest in its cash balance.
15. Statement of Financial Position Presentation: Cash and Other Related Items Genius Company is preparing its 2016 financial statements; the accounting period ends December 31. The following items, related to cash, are under consideration. You have been asked to indicate how each item should be reported on the statement of financial position and to explain the basis for your responses. a. A P900 check received from a customer, dated February 1, 2017, is on hand. b. A customer's check was included in the December 20 deposit. It was returned by the bank stamped NSF. No entry has yet been made by Genius to reflect the return. c. A P20,000 note receivable on which P1,000 of interest accrued to December 31 has just been recorded by debiting interest receivable and crediting interest revenue. The chief accountant proposes to report the P20,000 as cash in bank. d. Genius has a P200 petty cash fund. As of December 31, the fund cashier reported expense vouchers covering various expenses in the amount of P167 and cash of P32. e. Postage stamps that cost P30 are in the cash drawer. f. A cashier's check of P200 payable to Genius Company is in the cash drawer; it is dated December 29. g. Three checks, dated December 31, 2016, totaling P465, payable to vendors who have sold merchandise to Genius Company on account, were not mailed by December 31, 2016. They have not been entered as payments in the check register and ledger. h. Prior to December 30, Genius Company left a note that matures December 31, 2016, with its bank for collection. The note is for P20,000 and bears interest at 9 percent, having been outstanding for three months. As yet, Genius has not heard from the bank about collection but is confident of a favorable outcome because of the hieh credit rating of the maker of the note. The company plans to include the P20,000 plus interest in its cash balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:310 Chapter 9
Statement of Financial Position Presentation: Cash and Other Related
Items
9-15.
Genius Company is preparing its 2016 financial statements; the accounting
period ends December 31. The following items, related to cash, are under
consideration. You have been asked to indicate how each item should be
reported on the statement of financial position and to explain the basis for
your responses.
a.
A P900 check received from a customer, dated February 1, 2017, is on
hand.
b. A customer's check was included in the December 20 deposit. It was
returned by the bank stamped NSF. No entry has yet been made by
Genius to reflect the return.
c. A P20,000 note receivable on which P1,000 of interest accrued to
December 31 has just been recorded by debiting interest receivable
and crediting interest revenue. The chief accountant proposes to report
the P20,000 as cash in bank.
d. Genius has a P200 petty cash fund. As of December 31, the fund
cashier reported expense vouchers covering various expenses in the
amount of P167 and cash of P32.
e. Postage stamps that cost P30 are in the cash drawer.
f. A cashier's check of P200 payable to Genius Company is in the cash
drawer; it is dated December 29.
g. Three checks, dated December 31, 2016, totaling P465, payable to
vendors who have sold merchandise to Genius Company on account,
were not mailed by December 31, 2016. They have not been entered
as payments in the check register and ledger.
h. Prior to December 30, Genius Company left a note that matures
December 31, 2016, with its bank for collection. The note is for
P20,000 and bears interest at 9 percent, having been outstanding for
three months. As yet, Genius has not heard from the bank about
collection but is confident of a favorable outcome because of the high
credit rating of the maker of the note. The company plans to include
the P20,000 plus interest in its cash balance.
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