compute for the cash and cash equivalent that would be reported on the December 31, 2016 balance sheet.
compute for the cash and cash equivalent that would be reported on the December 31, 2016 balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 16
Caloocan Corporation for the year ended December 31, 2016, you gathered the folowing:
1.
Current account at Metrobank
P2,000,000
2.
Current account at BPI
(100,000)
3.
Payroll account
500,000
4.
Foreign bank account - restricted (in equivalent pesos)
1,000,000
5.
Postage stamps
1,000
6.
Employee's post dated check
4,000
7.
IOU from controller's sister
10,000
8.
Credit memo from a vendor for a purchase return
20,000
9.
Traveler's check
50,000
10.
Not-sufficient-funds check
15,000
11.
Money order
30,000
Petty cash fund (P4,000 in currency and expense receipts for
కొడ,000)
12.
10,000
13.
Treasury bills, due 3/31/17 (purchased 12/31/16)
200,000
14.
Treasury bills, due 1/31/17 (purchased 1/1/16)
300,000
compute for thecash and cash equivalent that would be reported on the December 31,2016 balance heet.
O P3,084,00
O P2.704,000
O P2.784.c00
O P2,790,000
Transcribed Image Text:Las Piñas Corporation, its controller is attempting to determine the amount of cash to be reported on its December 31, 2016 balance sheet The following
information is provided:
1. Commercial savings account of P1,200,000 and a commercial checking account balance of P1,800,000 are held at PS Bank.
2. Travel advances of P360,000 for executive travel for the first quarter of the next year (employee to reimburse through salary deduction).
3. A separate cash fund in the amount of P3,000,000 is restricted for the retirement of a long term debt.
4. Petty cash fund of P10,00.
5. An I.O.U. from a company officer in the amount of P40,000.
6. A bank overdraft of P250,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no
deposits at this bank.
7. The company has two certificates of deposit, each totaling P1,000,000. These certificates of deposit have maturity of 120 days.
8. Las Piñas has received a check dated January 2, 2017 in the amount of P150,000.
9. Las Piñas has agreed to maintain a cash balance of P200,000 at all times at PS Bank to ensure future credit availability.
10. Currency and coin on hand amounted to P15,000.
How much will be reported as cash and cash equivalent at December 31, 2016?
O P2,575,000
O P2,825,000
P5,025,000
O P3,025,000
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