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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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
10,000
100,000
500,000
Sinking fund securities
1,000,000
3,000,000
50,000
Investment in bonds
Accrued interest receivable- trading securities
Plant expansion fund
Cash surrender value of life insurance
700,000
80,000
Investment property- land
Advances to subsidiary
2,000,000
200,000
Interest in joint venture
800,000
Trading securities -ALI
40,000
Financial Assets -FVOCI
130,000
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.
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