EBK INTERMEDIATE ACCOUNTING: REPORTING
2nd Edition
ISBN: 9781337268998
Author: PAGACH
Publisher: YUZU
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Chapter 6, Problem 2MC
To determine
Identify the amount of cash balance reported in the
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Greenfield Company had the following cash balances at December 31, 2019:
Cash in banks includes $300,000 of compensating balances against short-term borrowing arrangements at December 31, 2019. The compensatingbalances are not legally restricted as to withdrawal by Greenfield. In thecurrent assets section of Green-field's December 31, 2019, balance sheet,what total amount should be reported as cash?a. $1,020,000b. $1,320,000c. $3,020,000d. $3,320,000
Dapitan Company had the following account balances at December 31, 2023:
Cash in bank
Cash on hand
Cash legally restricted for addition to plant and expected to be disbursed in 2024
P2,500,000
10,000
1,500,000
Cash in bank includes P200,000 compensating balances against short-term borrowing arrangements. The
compensating balances are not legally restricted as to withdrawal by Dapitan Company.
In the current assets section of Dapitan Co.'s December 31, 2023 statement of financial position, how
should be reported as cash?
Quart Company had the following account balances at December 31, 2021:Cash in banks - P2,250,000*Cash on hand - P125,000Cash legally restricted for additions to plant (expected to be disbursed in 2022) - P1,600,000*Cash in banks include P500,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Quart.How much is the total cash reported under current assets in Quart Company's December 31, 2021 statement of financial position?
Chapter 6 Solutions
EBK INTERMEDIATE ACCOUNTING: REPORTING
Ch. 6 - What are the components of cash? What items may be...Ch. 6 - Prob. 2GICh. 6 - Prob. 3GICh. 6 - How are trade receivables different from nontrade...Ch. 6 - Prob. 5GICh. 6 - Prob. 6GICh. 6 - Prob. 7GICh. 6 - What is a sales return? A sales allowance?...Ch. 6 - Discuss the differences between the allowance...Ch. 6 - Prob. 10GI
Ch. 6 - Prob. 11GICh. 6 - What method of bad debt estimation categorizes...Ch. 6 - Why does the write-off of uncollectible accounts...Ch. 6 - Discuss the difference between a secured borrowing...Ch. 6 - When does a company record the transfer of...Ch. 6 - Prob. 16GICh. 6 - What is a non-interest-bearing note? How does...Ch. 6 - Prob. 18GICh. 6 - How are the cash proceeds determined when a note...Ch. 6 - Under IFRS, what criteria must be satisfied in...Ch. 6 - Prob. 21GICh. 6 - (Appendix 6. 1) What is the purpose of a petty...Ch. 6 - (Appendix 6. 7) Why are actual expenses, rather...Ch. 6 - Prob. 24GICh. 6 - Prob. 25GICh. 6 - Prob. 1MCCh. 6 - Prob. 2MCCh. 6 - A company is in its first year of operations and...Ch. 6 - Prob. 4MCCh. 6 - Prob. 5MCCh. 6 - Prob. 6MCCh. 6 - A method of estimating bad debts that focuses on...Ch. 6 - When the accounts receivable of a company are sold...Ch. 6 - Prob. 9MCCh. 6 - Prob. 10MCCh. 6 - Prob. 11MCCh. 6 - On December 31, Harrison Company reports the...Ch. 6 - Lindley Enterprises sells hand woven rugs. Paige...Ch. 6 - Long Corporation is a fabric manufacturing...Ch. 6 - Prob. 4RECh. 6 - Prob. 5RECh. 6 - Prob. 6RECh. 6 - Prob. 7RECh. 6 - On December 1 of the current year, Jordan Inc....Ch. 6 - On December 1 of the current year, Jordan Inc....Ch. 6 - On December 1, Newton Enterprises sells 100,000 of...Ch. 6 - Kaseys Cake Shop made 20,000 in sales of wedding...Ch. 6 - On June 1, Phillips Corporation sold, with...Ch. 6 - Prob. 13RECh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Journal Entry to Separate Receivables An...Ch. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Aging Analysis of Accounts Receivable Cowens, a...Ch. 6 - Bradford Companys accounting records on December...Ch. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Transfer of Accounts Receivable Inder Corporation...Ch. 6 - Prob. 16ECh. 6 - Prob. 17ECh. 6 - Computing the Proceeds from the Sale of Notes...Ch. 6 - Recording the Sale of Notes Receivable Singer...Ch. 6 - Prob. 20ECh. 6 - Prob. 21ECh. 6 - Prob. 22ECh. 6 - Prob. 23ECh. 6 - Prob. 24ECh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - From inception of operations to December 31, 2015,...Ch. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Factoring and Assignment of Accounts Receivable...Ch. 6 - Recording Note Transactions The following...Ch. 6 - Notes Receivable Transactions The following notes...Ch. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 1CCh. 6 - Prob. 2CCh. 6 - Bad Debt Expense When a company has a policy of...Ch. 6 - Prob. 4CCh. 6 - Prob. 5CCh. 6 - Components of Cash Cash is an important asset of a...Ch. 6 - Prob. 7CCh. 6 - Transfer of Accounts and Notes Receivable Tidal...Ch. 6 - Prob. 9CCh. 6 - Prob. 10CCh. 6 - Researching GAAP Situation Hamilton Company...
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- Indie Company had the following account balances at December 31, 2021: Cash in Metrobank (includes P300,000 of compensating balance against short term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Indie Company) - P1,875,000 Cash in BPI - P180,000Cash on hand (includes a customers check for P15,000 dated January 5, 2022) - P125,000 Cash restricted for acquisition of machinery (expected to be disbursed in 2022) - P1,600,000 How much is the total cash reported in the current asset section of Indie Company's December 31, 2021 statement of financial position?arrow_forwardJungkook Company had the following account balances at December 31, 2020: Cash in banks- P2,250,000 Cash on hand- P125,000 Cash legally restricted for additions to plant (expected to be disbursed in 2022)- P1,600,000 Cash in banks includes P600,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Jungkook. In the current assets section of Jungkook’s December 31, 2020 statement of financial position, total cash should be reported atarrow_forwardIndie Company had the following account balances at December 31, 2021:Cash in Metrobank (includes P300,000 of compensating balance against short term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Indie Company) - P1,875,000Cash in BPI - P180,000Cash on hand (includes a customers check for P15,000 dated January 5, 2022) - P125,000Cash restricted for acquisition of machinery (expected to be disbursed in 2022) - P1,600,000How much is the total cash reported in the current asset section of Indie Company's December 31, 2021 statement of financial position?arrow_forward
- Maria Clara Company has a balance of P100,000 in cash & cash equivalents account as of December 31, 2023. The following items were found to be included in this balance. a. Compensating balance of P5,000 which is legally restricted as to withdrawal b. A negative bank balance of P10,000 from one of its bank accounts from just one bank. c. Plant expansion fund of P25,000 which is expected to be used on January 3, 2024. d. A certified check received from one customer last March 24, 2023. How much is the cash and cash equivalents to be presented in the 2023 Financial Statements?arrow_forwardLouis Company had the following account balances at December 31, 2021: Cash in Metrobank 1,875,000 Cash in BPI 200,000 Cash on hand (includes a customer's check for P15,000 dated January 5, 2022 125,000 Cash restricted for acquisition of machinery (expected to be disbursed in 2022) 1,600,000 Cash in Metrobank include P300,000 of compensating balance against short-term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Louis. Question: In the current asset section of Louis' December 31, 2021 statement of financial position, total cash should be reported at a. P2,185,000b. P1,885,000c. P3,785,000d. P3,485,000arrow_forwardSafari Company has a balance of P100,000 in cash & cash equivalents account as of December 31, 2022. The following items were found to be included in this balance. a. Compensating balance of P5,000 which is legally restricted as to withdrawal b. A negative bank balance of P10,000 from one of its bank accounts from just one bank. c. Plant expansion fund of P25,000 which is expected to be used on January 3, 2023. d. A certified check received from one customer last March 24, 2022. How much is the cash and cash equivalents to be presented in the 2022 Financial Statements?arrow_forward
- 1. Tranvia Company revealed the following information on December 31, 2020:Cash in checking account 350,000Cash in money market account 750,000Treasury bill, purchased November 1, 2020maturing January 31, 2021 3,500,000Time deposit purchased December 1, 2020maturing March 31, 2021 4,000,000 What amount should be reported as cash and cash equivalents on December 31, 2020? 2. Affable Company provided the following information at year-end comprising the cashaccount:Cash in bank – demand deposit 5,000,000Cash on hand 400,000Postage stamps unused 5,000Certificate of time deposit 1,500,000Money order 50,000Manager check 100,000Traveler check 1,000,000Postdated customer check 500,000 What total amount should be reported as cash at year end? 3. Thor Company provided the following data on December 31, 2020:Checkbook balance 4,000,000Bank statement balance 5,000,000Check drawn on Thor’s account, payable to supplier,dated and recorded on December 31, 2020 but notmailed until January 31, 2021…arrow_forward.On December 31, 2021, Alfonso Company had the following cash balances:Cash in bank, 15,000,000Petty cash fund, 50,000Time deposit 5,000,000Savings deposit 2,000,000Cash in bank includes P500,000 of compensating balance against short term borrowing arrangement at December 31, 2021. The compensating balance is legally restricted as to withdrawal by Alfonso. A check of P300,000 dated January 15, 2022 in payment of accounts payable was recorded and mailed on December 31, 2021. In the current assets section of the December 31, 2021 statement of financial position, what amount should be reported as “cash and cash equivalents”? 14,850,000 16,850,000 21,800,000 21,850,000arrow_forwardThe balance sheet at December 31,2019 of Universal Robina Corporation showed a cashbalance of P183,500. An examination of the books disclosed the following:Cash sales of P24,000 from January 1 to 5, 2020 were pre dated as of December 28 to 31, 2019and charged to the cash account. Customers’ checks totaling P9,000 deposited with andreturned by the bank “NSF” on December 27, 2019 were not recorded in the books. Checks ofP11,200 in payment of liabilities were prepared before December 31,2019 and recorded in thebooks, but withheld by the treasurer. Post-dated checks totaling P6,800 are being held by thecashier as part of cash. The company’s experiences shows that post-dated checks are eventuallyrealized. The cash account includes P40,000 being reserved for the purchase of an IPAD whichwill be delivered soon. The cash balance that should be shown on December 31, 2019 balancesheet is ________.a.P 92,500 b. P 154,900 c. P 114,900 d. P163,900 Juan Gabriel Company had the following account…arrow_forward
- A Company provided the following account balances on December 31, 2021: Financial assets at FVTOCI 300,000 Cash in bank (net of bank overdraft of P100,000) 500,000 Petty cash fund 40,000 Inventory (including inventory out on consignment amounting P50,000) 200,000 Financial assets at amortized cost/held to maturity 600,000 Accounts receivable 2,100,000 Undeposited collections (including P10,000 customer’s check return, DAIF) 100,000 Allowance for uncollectible accounts 200,000 Trade installment accounts receivable, including P60,000 due after a year 145,000 Cash surrender value of life insurance 50,000 Prepaid expenses 200,000 Equipment and furniture 1,300,000 Accumulated depreciation 700,000 Patent 300,000 Accumulated amortization 20,000 [Q2]: Determine total amount of (5) current assets and (6) non-current assets on December 31, 2021.arrow_forwardOn December 31, 2020, Allan Company had the following cash balances: Cash on hand and in bank 4,000,000 Cash restricted for bonds payable due on June 30, 2021 13,000 Time deposit 1,500,000 Savings deposit set aside for dividends payable on June 30, 2021 500,000 Cash in bank includes P175,000 of compensating balance against short term borrowing arrangement at December 31, 2020. The compensating balance is legally restricted as to withdrawal by Allan. A check of P75,000 dated January 15, 2021 and in payment of accounts payable was recorded and mailed on December 31, 2020. In the current assets section of the December 31, 2020statement of financial position, what amount should be reported as "cash and cash equivalents"? P5,913,000 P4,413,000 P5,900,000 P3,913,000arrow_forwardOn 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?arrow_forward
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