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What total amount should be reported as cash and cash equivalents on December 31, 2019?

What total amount should be reported as cash and cash equivalents on December 31, 2019?

FINANCIAL ACCOUNTING
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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Problem 14-1 (AICPA Adapted) Campbell Company had the following account balances on December 31, 2019: Petty cash fund Cash in bank - current account Cash in bank - payroll account Cash in bank - sinking fund Cash on hand Cash in bank - restricted account for plant addition and expected to be disbursed in 2020 Treasury bills The petty cash fund included unreplenished December 2019 petty cash expense vouchers P5,000 and employee IOU P5,000. 50,000 4,000,000 1,200,000 2,000,000 500,000 The cash on hand included a P100,000 customer check payable to Campbell dated January 15, 2020. 1,500,000 1,000,000 In exchange for a guaranteed line of credit, the entity has agreed to maintain a minimum balance of P200,000 in the unrestricted current bank account. The sinking fund is set aside to settle a bond payable that is due on December 31, 2020. a. 8,640,000 b. 7,440,000 What total amount should be reported as cash and cash equivalents on December 31, 2019? c. 7,640,000 d. 5,640,000 152
Transcribed Image Text:Problem 14-1 (AICPA Adapted) Campbell Company had the following account balances on December 31, 2019: Petty cash fund Cash in bank - current account Cash in bank - payroll account Cash in bank - sinking fund Cash on hand Cash in bank - restricted account for plant addition and expected to be disbursed in 2020 Treasury bills The petty cash fund included unreplenished December 2019 petty cash expense vouchers P5,000 and employee IOU P5,000. 50,000 4,000,000 1,200,000 2,000,000 500,000 The cash on hand included a P100,000 customer check payable to Campbell dated January 15, 2020. 1,500,000 1,000,000 In exchange for a guaranteed line of credit, the entity has agreed to maintain a minimum balance of P200,000 in the unrestricted current bank account. The sinking fund is set aside to settle a bond payable that is due on December 31, 2020. a. 8,640,000 b. 7,440,000 What total amount should be reported as cash and cash equivalents on December 31, 2019? c. 7,640,000 d. 5,640,000 152
Problem 14-3 (IAA) On December 31, 2019, Erika Company reported cash account balance per ledger of P9,500,000 which included the following: Cash in bank-demand deposit Time deposit - 30 days NSF check of customer Money market placement due on June 30, 2020 Saving deposit IOU from an employee Pension fund Customer check dated January 31, 2020 Customer check outstanding for 18 months * 3,000,000 500,000 200,000 2,000,000 1,000,000 300,000 1,500,000 Check of P100,000 in payment of accounts payable was dated and recorded on December 31, 2019 but mailed to creditors on January 15, 2020. 600,000 400,000 9,500,000 Check of P300,000 dated January 31, 2020 in payment of accounts payable was recorded and mailed December 31, 2019. a. 4,700,000 b. 6,700,000 The cash receipts journal was held open until January 15, 2020, during which time P200,000 was collected and recorded on December 31, 2019. c. 4,900,000 d. 5,100,000 What total amount should be reported as cash and cash equivalents on December 31, 2019?
Transcribed Image Text:Problem 14-3 (IAA) On December 31, 2019, Erika Company reported cash account balance per ledger of P9,500,000 which included the following: Cash in bank-demand deposit Time deposit - 30 days NSF check of customer Money market placement due on June 30, 2020 Saving deposit IOU from an employee Pension fund Customer check dated January 31, 2020 Customer check outstanding for 18 months * 3,000,000 500,000 200,000 2,000,000 1,000,000 300,000 1,500,000 Check of P100,000 in payment of accounts payable was dated and recorded on December 31, 2019 but mailed to creditors on January 15, 2020. 600,000 400,000 9,500,000 Check of P300,000 dated January 31, 2020 in payment of accounts payable was recorded and mailed December 31, 2019. a. 4,700,000 b. 6,700,000 The cash receipts journal was held open until January 15, 2020, during which time P200,000 was collected and recorded on December 31, 2019. c. 4,900,000 d. 5,100,000 What total amount should be reported as cash and cash equivalents on December 31, 2019?
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