Cash flow statement: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. To prepare: Cash flow statement of BB Company for 2018, under direct method.

Question

PROBLEM 1 Argentina Company reported the following accounts on December 31, 2020: Cash on hand Petty cash fund Security bank current account PNB current account BDO current account (overdraft) BSP treasury bill - 120 days BPI time deposit - 90 days Bond sinking fund P1,000,000 50,000 2,000,000 1,500,000 (200,000) 3,000,000 2,000,000 2,500,000 • The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000. • The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check for P5,000 dated January 31, 2021. • The BPI time deposit is set aside for acquisition of land to be made in early January 2021. • The bond sinking fund is set aside for payment of bond payable due December 31, 2021. Required: 1. Prepare adjusting entries on December 31, 2020. 2. Compute the total amount of cash and cash equivalents. 3. Explain the presentation of the items excluded from cash and cash equivalents.

Answer 1

Question

Chapter 4, Problem 4.13E

To determine

Cash flow statement:

This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

To prepare: Cash flow statement of BB Company for 2018, under direct method.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

PROBLEM 1 Argentina Company reported the following accounts on December 31, 2020: Cash on hand Petty cash fund Security bank current account PNB current account BDO current account (overdraft) BSP treasury bill - 120 days BPI time deposit - 90 days Bond sinking fund P1,000,000 50,000 2,000,000 1,500,000 (200,000) 3,000,000 2,000,000 2,500,000 • The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000. • The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check for P5,000 dated January 31, 2021. • The BPI time deposit is set aside for acquisition of land to be made in early January 2021. • The bond sinking fund is set aside for payment of bond payable due December 31, 2021. Required: 1. Prepare adjusting entries on December 31, 2020. 2. Compute the total amount of cash and cash equivalents. 3. Explain the presentation of the items excluded from cash and cash equivalents.

What is the amount of cash disbursements per book in September? A. 10,050,000 B. 9,825,000 C. 10,275,000 D. 10,950,000

Problem 3: Cash Valuation/Computation Maldeta Corporation has supplied you with the following list of its bank accounts and cash at December 31, 2019. Checking account (Compensating balance of P15,000 with no restriction) 48,000 Savings account, 2% 30,000 Certificate of deposit, 6 months, 10%, due April 20, 2020 60,000 Money market (30 day certificate, current rate 9.75%) 40,000 Payroll account 20,000 Certificate of deposit, 3 months, 10%, due February 15, 2020 75,000 Petty cash 1,500 Requirement: What should be the balance should be reported as Cash and Cash Equivalents in December 31, 2019 statement of financial position of MAldeta Company?