Problem 7 – 22:

Takeable Company had the following account balances on December 31, 2016:

Cash on hand and in bank 5,000,000

Cash restricted for equipment acquisition in early next year 2,000,000
Time deposit 1,500,000
Saving deposit set aside for dividend payable on December 31, 2017 1,000,000

What total amount should be reported as “cash” on December 31, 2016?

a) 7,500,000
b) 9,500,000
c) 6,000,000
d) 8,000,000

Problem 7 – 23:

Ecstasy Company reported the following information at the end of the current year.

 Investment securities of P 1,000,000. These securities are share investments in entities

that are traded in the Philippine Stock Exchange.

As a result, the shares are very actively traded in the market.

 Investment securities of P 2,000,000. These securities are government treasury bills.

The treasury bills have a 10-year term and purchased on December 31 at which time
they had two months to go until they mature.

 Cash of P 3,400,000 in the form of coin, currency, saving account and checking account.
 Investment securities of P 1,500,000. These securities are commercial papers or money
market placements.

The term of the commercial papers is nine months and they were purchased on
December 31 at which time they had three months to go until they mature.

1) What total amount should be reported as cash at the end of current year?
a) 3,400,000
b) 5,400,000
c) 4,900,000
d) 6,900,000

2) What total amount should be reported as cash equivalents at the end of current year?
a) 3,500,000
b) 4,500,000
c) 1,500,000
d) 2,500,000
Problem 7 – 24:

Candid Company provided the following information with respect to cash and cash equivalents
at year – end:

Checking account at First Bank (200,000)

Checking account at Second Bank 5,500,000
Treasury bonds 1,000,000
Payroll account 500,000
Value added tax account 400,000
Unrestricted foreign bank account in equivalent pesos 2,000,000
Cash in foreign bank restricted due to exchange control 1,000,000
IOU from president 750,000
Credit memo from a vendor for a purchase return 80,000
Traveller Check 300,000
No sufficient fund check 150,000
Petty cash fund (P 20,000 in currency and expense
receipts for P300,000) 50,000
Money Order 180,000

What total amount should be reported as cash at year – end?

a) 9,900,000
b) 8,600,000
c) 6,900,000
d) 8,900,000