Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Chapter 5, Problem 5.14ME
To determine
To mention: Whether the given items should be reported as cash and cash equivalents by indicating Yes, or, No
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Part 1.
1. If HHC has \$1,450 cash$500 of government Treasury bills purchased four months ago, $840 of cash set aside for its workers compensation insurance, how much will the company report on the balance sheet as "Cash and Cash Equivalents"?
Part 2:
2. I established the fund by cashing a check from HHC for $265 made payable me. Record the transaction
3. Tom Canuck provided a $79 receipt for repairs to the club's computer, so I paid $79 cash to him. Record the transaction.
4. Kim Harra provided a receipt for $59 for various supplies she planned to use to decorate the arena later this year. I paid $59 cash to her. Record the transaction.
5. Trainer Jim bought some equipment that the club intends to use for the next few years. He gave me the receipt and I paid him $89. Record the transaction.
6. On the last day of the month, I prepared a summary of expenditures and requested the fund be replenished. I received and cashed a check from HHC for $227, placing the cash into a locked cash…
2. If HHC has $1,100 cash, $400 of government Treasury bills purchased four months ago, and $770 of cash set aside for its workers'
compensation insurance, how much will the company report on the balance sheet as "Cash and Cash Equivalents"?
Cash and Cash Equivalents
On December 31, 2019, Taehyung Company had the following cash balances:
Cash in bank- P2,500,000
Petty Cash fund (all funds were reimbursed on 12/31/2019)- P150,000
Time deposit (start date: December 1, 2019 and due February 14, 2020)- P350,000
Cash in bank included P900,000 of compensating balance against short-term borrowing arrangement on December 31, 2019. The compensating balance is legally restricted as to withdrawal.
In the December 31, 2019, statement of financial position, what total amount should be reported as cash and cash equivalents?
Chapter 5 Solutions
Fundamentals of Financial Accounting
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - What aspect(s) of the Sarbanes-Oxley Act might...Ch. 5 - Prob. 7QCh. 5 - What are the five components of an internal...Ch. 5 - Prob. 9QCh. 5 - Why is it a good idea to assign each task to only...
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - Prob. 15QCh. 5 - Prob. 16QCh. 5 - What is the primary internal control goal for cash...Ch. 5 - Prob. 18QCh. 5 - Prob. 19QCh. 5 - Prob. 20QCh. 5 - Prob. 21QCh. 5 - Prob. 22QCh. 5 - Prob. 23QCh. 5 - Prob. 24QCh. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Which of the following internal control principles...Ch. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 5.1MECh. 5 - Prob. 5.2MECh. 5 - Prob. 5.3MECh. 5 - Prob. 5.4MECh. 5 - Prob. 5.5MECh. 5 - Prob. 5.6MECh. 5 - Prob. 5.7MECh. 5 - Prob. 5.8MECh. 5 - Prob. 5.9MECh. 5 - Prob. 5.10MECh. 5 - Prob. 5.11MECh. 5 - Prob. 5.12MECh. 5 - Prob. 5.13MECh. 5 - Prob. 5.14MECh. 5 - Prob. 5.15MECh. 5 - Prob. 5.16MECh. 5 - Identifying Internal Control Principle and...Ch. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.1CPCh. 5 - Prob. 5.2CPCh. 5 - Prob. 5.3CPCh. 5 - Prob. 5.4CPCh. 5 - Prob. 5.1PACh. 5 - Prob. 5.2PACh. 5 - Prob. 5.3PACh. 5 - Prob. 5.4PACh. 5 - Prob. 5.1PBCh. 5 - Prob. 5.2PBCh. 5 - Prob. 5.3PBCh. 5 - Prob. 5.4PBCh. 5 - Recording Transactions and Adjustments,...Ch. 5 - Prob. 5.1SDCCh. 5 - Prob. 5.2SDCCh. 5 - Ethical Decision Making: A Real-Life Example When...Ch. 5 - Ethical Decision Making: A Mini-Case You are an...Ch. 5 - Accounting for Cash Receipts, Purchases, and Cash...
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- I need help with this problemarrow_forwardUnadjusted petty cash fund is 3,000. How much is the adjusted balance of petty cash fund at the end of the periodarrow_forwardAssume that the custodian of a $450 petty cash fund has $57.10 in coins and curency plus $387.00 in recipts at the end of the month. The entry to replenish the petty cash fund will include:?arrow_forward
- Determine the total amount that should be included in cash balance at December 31, 2021arrow_forwardThe Head of the Agency approves the establishment of a P30,000 petty cash fund. Here are the following information for the monthly petty expenses as well as the cash count: Coins and Currencies 7,800 Office Supplies Expense 3,400 Fuel and Oil 10,500 Postage and Courier Expenses 1,900 Maintenance and Operating Expenses 4,000 a. Give the journal entries pertaining to the establishment of the PCF. b. Give the journal entries when the PCF is replenished. c. The journal entries if the PCF is not replenished. d. The journal entries if the PCF is closed. e. How much is the cash shortage(overage)? f. How is the shortage or overage accounted? g. The journal entries for the cash shortage(overage).arrow_forwardSpecter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $13,000 cash deposit in checking account. • $40,000 bond investment due in 20 years. $10,000 U.S. Treasury bill due in 1 month. $700, 3-year loan to an employee. $3,000 of currency and coins. $1,000 of accounts receivable. Included in Cash and Cash Equivalents Equivalents? Cash and Cash Amount Amount Checking account $4 13,000 Bond investment 40,000 U.S. Treasury bill 10,000 700 Loan to an employee Currency and coins 3,000 Accounts receivable 1,000 Total Cash and cash equivalentsarrow_forward
- Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. . $4,000 cash deposit in checking account. . $22,000 bond investment due in 20 years. • $5,500 U.S. Treasury bill due in 1 month. $250, 3-year loan to an employee. • $1,200 of currency and coins. $550 of accounts receivable. Included in Cash and Cash and Amount Cash Equivalents? Cash Equivalents Amount Checking account $ 4,000 Bond investment 22,000 U.S. Treasury bill 5,500 Loan to an employee 250 Currency and coins 1,200 Accounts receivable 550 Total Cash and cash equivalentsarrow_forwardAt year-end, Mariz Company reported cash and cash equivalent comprising: cash on hand P 500,000, demand deposit P 4,000,000, certificate of deposit P 2,000,000, post dated customer’s check P 300,000, petty cash fund P 50,000, traveler’s check P 200,000, managers check P100,000 and money order P 150,000. What amount of cash should be reported at year-end?arrow_forwardZambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company’saccountant obtains the necessary information to prepare accrual basis financial statements. The following cashflows occurred during the year ended December 31, 2018:Cash receipts:From customers $675,000Interest on note 4,000Loan from a local bank 100,000Total cash receipts $779,000Cash disbursements:Purchase of merchandise $390,000Annual insurance payment 6,000Payment of salaries and wages 210,000Dividends paid to shareholders 10,000Annual rent payment 24,000Total cash disbursements $640,000Selected balance sheet information:12/31/17 12/31/18Cash $ 25,000 $164,000Accounts receivable 62,000 92,000Inventory 80,000 62,000Prepaid insurance 2,500 ?Prepaid rent 11,000 ?Interest receivable 3,000 ?Note receivable 50,000 50,000Equipment 100,000 100,000Accumulated depreciation—equipment (40,000) (50,000)Accounts payable (for merchandise) 110,000 122,000Salaries and wages payable 20,000…arrow_forward
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