2. The following accounts appear on the adjusted trial balance of Hanofi Company on December 31, 2019:Petty cash fundPayroll fundSinking fund cash10,000100,000500,000Sinking fund securities1,000,0003,000,00050,000Investment in bondsAccrued interest receivable- trading securitiesPlant expansion fundCash surrender value of life insurance700,00080,000Investment property- landAdvances to subsidiary2,000,000200,000Interest in joint venture800,000Trading securities -ALI40,000Financial Assets -FVOCI130,000a) Determine how much should be included in cash and cash equivalent.b) Determine how much should be included in current assets – investments.c) Determine how much should be included as non-current investments.d) If not part of the above classifications, determine the treatment of the accounts in the financial statements.Example – Interest Receivables- P20,000 – Receivables under current asset.

2. The following accounts appear on the adjusted trial balance of Hanofi Company on December 31, 2019: Petty cash fund Payroll fund Sinking fund cash Sinking fund securities 10,000 100,000 500,000 1,000,000 3,000,000 50,000 700,000 Investment in bonds Accrued interest receivable- trading securities Plant expansion fund Cash surrender value of life insurance 80,000 Investment property- land Advances to subsidiary 2,000,000 200,000 Interest in joint venture 800,000 40,000 130,000 Trading securities -ALI Financial Assets -FVOCI a) Determine how much should be included in cash and cash equivalent. b) Determine how much should be included in current assets – investments. c) Determine how much should be included as non-current investments. d) If not part of the above classifications, determine the treatment of the accounts in the financial statements. Example – Interest Receivables- P20,000 – Receivables under current asset.

2. The following accounts appear on the adjusted trial balance of Hanofi Company on December 31, 2019: Petty cash fund Payroll fund Sinking fund cash Sinking fund securities 10,000 100,000 500,000 1,000,000 3,000,000 50,000 700,000 Investment in bonds Accrued interest receivable- trading securities Plant expansion fund Cash surrender value of life insurance 80,000 Investment property- land Advances to subsidiary 2,000,000 200,000 Interest in joint venture 800,000 40,000 130,000 Trading securities -ALI Financial Assets -FVOCI a) Determine how much should be included in cash and cash equivalent. b) Determine how much should be included in current assets – investments. c) Determine how much should be included as non-current investments. d) If not part of the above classifications, determine the treatment of the accounts in the financial statements. Example – Interest Receivables- P20,000 – Receivables under current asset.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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