On December 31,2021, the cash equivalent of SPIDEY Company show the following composition: -Petty cash fund (of which P750 is unreplenished vouchers for expenses: P150 is IOU notes and remaining currencies and coins amounting P3,500) - P5,000 -Cash in bank, General account A, net of P25,000 bank overdraft in the general payroll account in a difference bank - 625,000 Cash in bank, General account B, including unrestricted compensating balances of P200,000 - 270,000 Cash in bank, General account C, per book (outstanding checks as of year-end totaled P10,000) - 90,000 Cash on hand including customer’s postdated checks of P6,000 - 25,000
On December 31,2021, the cash equivalent of SPIDEY Company show the following composition: -Petty cash fund (of which P750 is unreplenished vouchers for expenses: P150 is IOU notes and remaining currencies and coins amounting P3,500) - P5,000 -Cash in bank, General account A, net of P25,000 bank overdraft in the general payroll account in a difference bank - 625,000 Cash in bank, General account B, including unrestricted compensating balances of P200,000 - 270,000 Cash in bank, General account C, per book (outstanding checks as of year-end totaled P10,000) - 90,000 Cash on hand including customer’s postdated checks of P6,000 - 25,000
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.9MCE
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Question
On December 31,2021, the cash equivalent of SPIDEY Company show the following composition:
-Petty cash fund (of which P750 is unreplenished vouchers for expenses: P150 is
IOU notes and remaining currencies and coins amounting P3,500) - P5,000
-Cash in bank, General account A, net of P25,000 bank overdraft in the general payroll account in a difference bank - 625,000
Cash in bank, General account B, including unrestricted compensating balances of P200,000 - 270,000
Cash in bank, General account C, per book (outstanding checks as of year-end totaled P10,000) - 90,000
Cash on hand including customer’s postdated checks of P6,000 - 25,000
Cash in bank, Administrator payroll account, after checks amounting to P125,000 dated Dec. 30,2018 but unreleased as of Dec. 31,2018 - 750,000
Savings deposit, earmarked for the acquisition of building which are expected to be disbursed within 6 months from reporting date - 600,000
Cash surrender value - 50,000
Cash set aside for payment of interests and dividends - 20,000
Treasury bill, due 3/30/22 (purchased 12/31/21) - 70,000
Treasury bill, due 1/31/22 (purchased 5/1/21) - 40,000
Traveler’s and Manager’s check - 10,000
Postage stamps - 1,000
BOND Sinking Fund - 100,000
How much is the correct amount of Cash and Cash Equivalents to be shown in theStatement of Financial Position at December 31,2021?
-Petty cash fund (of which P750 is unreplenished vouchers for expenses: P150 is
IOU notes and remaining currencies and coins amounting P3,500) - P5,000
-Cash in bank, General account A, net of P25,000 bank overdraft in the general payroll account in a difference bank - 625,000
Cash in bank, General account B, including unrestricted compensating balances of P200,000 - 270,000
Cash in bank, General account C, per book (outstanding checks as of year-end totaled P10,000) - 90,000
Cash on hand including customer’s postdated checks of P6,000 - 25,000
Cash in bank, Administrator payroll account, after checks amounting to P125,000 dated Dec. 30,2018 but unreleased as of Dec. 31,2018 - 750,000
Savings deposit, earmarked for the acquisition of building which are expected to be disbursed within 6 months from reporting date - 600,000
Cash surrender value - 50,000
Cash set aside for payment of interests and dividends - 20,000
Treasury bill, due 3/30/22 (purchased 12/31/21) - 70,000
Treasury bill, due 1/31/22 (purchased 5/1/21) - 40,000
Traveler’s and Manager’s check - 10,000
Postage stamps - 1,000
BOND Sinking Fund - 100,000
How much is the correct amount of Cash and Cash Equivalents to be shown in the
1,997,500
2,607,500
2,587,500
2,007,500
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