Problem -2: In the course of your audit of the Romen Company, 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 P1,800,000are held at Union Bank. 2. Travel advances of P360,000 for executive travel for the first quarter of the nest 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.

Problem -2: In the course of your audit of the Romen Company, 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 P1,800,000are held at Union Bank. 2. Travel advances of P360,000 for executive travel for the first quarter of the nest 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.

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

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Problem -2: In the course of your audit of the Romen Company, 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 P1,800,000are held at Union Bank.
2. Travel advances of P360,000 for executive travel for the first quarter of the nest 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 P10,000
5. 1.O.U.from a company officer in the mount of P 40,000.
6. The company has two certificates of deposit, totaling P1,000,000.
7. The company received a check dated January 12, 2017in the amount of P150,000.
mouht
8. Currency and coins on hand amounted to P15,000.
9. The company agreed to maintain a cash balance of P200,000 at all times at Union
Bank to ensure future credit availability.
Required: Compute the total cash and cash equivalent to be reported at December 31,
2016.

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