The document contains several accounting problems related to cash and cash equivalents. Problem 1 asks how much cash SML Co. has on December 31 based on various cash accounts. Problem 2 asks how much of Behringer Co.'s securities holdings should be presented as cash equivalents. Problem 3 asks how much cash and cash equivalents Smile Co. should report based on various cash accounts in different currencies and investments. Problem 4 asks how much cash in bank Cloudy Co. should present based on various bank accounts. Problem 5 provides details of a petty cash fund transaction and asks for the related journal entries. Problem 6 also relates to a petty cash fund but asks how it would be reported if not replenished.
The document contains several accounting problems related to cash and cash equivalents. Problem 1 asks how much cash SML Co. has on December 31 based on various cash accounts. Problem 2 asks how much of Behringer Co.'s securities holdings should be presented as cash equivalents. Problem 3 asks how much cash and cash equivalents Smile Co. should report based on various cash accounts in different currencies and investments. Problem 4 asks how much cash in bank Cloudy Co. should present based on various bank accounts. Problem 5 provides details of a petty cash fund transaction and asks for the related journal entries. Problem 6 also relates to a petty cash fund but asks how it would be reported if not replenished.
The document contains several accounting problems related to cash and cash equivalents. Problem 1 asks how much cash SML Co. has on December 31 based on various cash accounts. Problem 2 asks how much of Behringer Co.'s securities holdings should be presented as cash equivalents. Problem 3 asks how much cash and cash equivalents Smile Co. should report based on various cash accounts in different currencies and investments. Problem 4 asks how much cash in bank Cloudy Co. should present based on various bank accounts. Problem 5 provides details of a petty cash fund transaction and asks for the related journal entries. Problem 6 also relates to a petty cash fund but asks how it would be reported if not replenished.
The document contains several accounting problems related to cash and cash equivalents. Problem 1 asks how much cash SML Co. has on December 31 based on various cash accounts. Problem 2 asks how much of Behringer Co.'s securities holdings should be presented as cash equivalents. Problem 3 asks how much cash and cash equivalents Smile Co. should report based on various cash accounts in different currencies and investments. Problem 4 asks how much cash in bank Cloudy Co. should present based on various bank accounts. Problem 5 provides details of a petty cash fund transaction and asks for the related journal entries. Problem 6 also relates to a petty cash fund but asks how it would be reported if not replenished.
ACT15 – Intermediate Accounting part 1 M. Manayao, CPA
Problem 6: For Classroom Discussion
Cash 1. The records of SML Co. on December 31, 20x1 show the following Checks drawn but not yet issued to payees P 120,000 Customers’ checks dated January 15, 20x2 35,000 Customers’ checks dated December 31, 20x1 40,000 SML’s check dated January 15, 20x2 already mailed to payee 16,000 Cash on hand 130,000 Employee’s checks representing unclaimed salaries, held by the treasurer 14,000 Petty cash fund (fully replenished) 20,000
Requirement: How much is included as cash on December 31, 20x1?
Cash Equivalents 2. Behringer Co. holds the following securities on December 31, 20x1: Treasury bill acquired on November 1, 20x1, maturing on January 31, 20x2 P 300,000 Money market placements to RCBC trust, made on December 15, 20x1, maturing on August 31, 20x2 800,000 Redeemable preference shares acquired on December 31, 20x1 and redeemable on March 31, 20x2 1,600,000 Three-month time deposit with UCPB 950,000 Investment ins shares of stocks acquired on December 31, 20x1 to be sold in January 20x2 450,000
Requirement: How much is presented as cash equivalent?
FS presentation, Measurement and Deposit in foreign bank
3. Smile CO. has the following items on December 31, 20x1: Cash on hand P 1,800,000 Cash on hand (USD, translated at P50:$1) 2,900,000 Revolving fund 200,000 Contingency fund 80,000 Cash in bank – BPI 6,000,000 Cash in bank – Swiss Savings Account (translated at P51:CHF1) 1,400,000 Treasury bill acquired September 28, 20x1, maturing January 28, 20x2 600,000
Additional information: The current exchange rates on December 31, 20x1 are as follows: P52:$1 and P49:CHF1 The Swiss Savings Account is restricted as to withdrawal.
Requirement: How much is presented as cash and cash equivalents in Smile Co.’s December 31, 20x1 statement of financial position?
CHAPTER 2 – ACT15 | M. MANAYAO,CPA 1
Compensating balance and Bank overdraft 4. Cloudy Co.’s cash in bank consists of the following: Piggy Bank savings account 480,000 Piggy Bank checking account (20,000) Oink Bank checking account 360,000 Porky Bank savings account #5100342120 200,000 Porky Bank savings account #6234210342 (70,000) Unused credit line – Bombay Bank 250,000
Additional information: The Piggy Bank savings account includes P40,000 compensating balance that is not legally restricted. The Oink Bank checking account includes P100,000 compensating balance that is legally restricted. The Porky Bank savings account #5100342120 represents a cash bond that is mandated by a law to be held pending the final settlement of an on-going litigation.
Requirement: What amount of cash in bank is presented in the financial statements?
Accounting for Petty Cash Fund
5. An entity established a petty cash fund (PCF) of P30,000 on October 1, 20x1. During the month, P24,260 have been disbursed from the PCF, and by the end of the month, the PCF box contains coins and currencies amounting to P5,625.
Requirement: Provide the journal entries including the replenishment of the fund at month-end. Use a suspense account to record any discrepancy.
6. Use the information in #5 above but assume the PCF is not replenished and financial statements are prepared at month-end. Assume further that all the discrepancies in the PCF are chargeable to the petty cash custodian.
Requirement: Provide the adjusting entry and determine the amount of PCF that will be reported in the financial statements.
