1. What amount should be reported as Cash and Cash Equivalents?a. 3,548,000b. 3,423,000c. 3,523,000d. 3,448,000 2. How much from the information above should be presented as part of liability?a. Zerob. 200,000c. 2,175,000d. 2,200,000 At year-end, CB Inc. had the following account balances on December 31, 2018.Petty Cash fundCash in Bank- BPI Current accountCash in Bank- BDO Current accountCash in Bank- Sinking FundCash on HandCash in bank- restricted foracquisitionTreasury Bills25,0002,700,000(200,000)1,950,000280,000PPE 1,500,000575,000The petty cash fund included unreplenished December 2018 petty cash expense vouchers of P5,000 and employeeIOU of P2,000 and also includes an envelope with a note "Donations for Christmas Party for a total of P5,000". Theenvelope has no cash inside. The Cash on hand included check payable to CB Inc. dated January 15, 2019 amountingto P150,000 and check in payment to suppliers amounting to P25,000 which was not yet mailed as of December 31.It was determined that the Donations for Christmas party was not included in the cash on hand. The current accountof CB inc. from BPI also includes a P100,000 minimum maintaining balance. Failure to maintain the balance wouldonly result to penalties thereof to the company from the bank. The bond sinking fund is set aside to pay acorresponding bond payable of the same amount dated January 15, 2021.

Cash and Cash Equivalent Cash and cash equivalent is one of the most important part in the balance…

What amount should be reported as Cash and Cash Equivalents? a. 3,548,000 b. 3,423,000 c. 3,523,000 d. 3,448,000 2. How much from the information above should be presented as part of liability? a. Zero b. 200,000 c. 2,175,000 d. 2,200,000

What amount should be reported as Cash and Cash Equivalents? a. 3,548,000 b. 3,423,000 c. 3,523,000 d. 3,448,000 2. How much from the information above should be presented as part of liability? a. Zero b. 200,000 c. 2,175,000 d. 2,200,000

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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Question

1. What amount should be reported as Cash and Cash Equivalents?

a. 3,548,000

b. 3,423,000

c. 3,523,000

d. 3,448,000

2. How much from the information above should be presented as part of liability?

a. Zero

b. 200,000

c. 2,175,000

d. 2,200,000

At year-end, CB Inc. had the following account balances on December 31, 2018.
Petty Cash fund
Cash in Bank- BPI Current account
Cash in Bank- BDO Current account
Cash in Bank- Sinking Fund
Cash on Hand
Cash in bank- restricted for
acquisition
Treasury Bills
25,000
2,700,000
(200,000)
1,950,000
280,000
PPE 1,500,000
575,000
The petty cash fund included unreplenished December 2018 petty cash expense vouchers of P5,000 and employee
IOU of P2,000 and also includes an envelope with a note "Donations for Christmas Party for a total of P5,000". The
envelope has no cash inside. The Cash on hand included check payable to CB Inc. dated January 15, 2019 amounting
to P150,000 and check in payment to suppliers amounting to P25,000 which was not yet mailed as of December 31.
It was determined that the Donations for Christmas party was not included in the cash on hand. The current account
of CB inc. from BPI also includes a P100,000 minimum maintaining balance. Failure to maintain the balance would
only result to penalties thereof to the company from the bank. The bond sinking fund is set aside to pay a
corresponding bond payable of the same amount dated January 15, 2021.

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