Problem 1.

GABRIEL Company has the following balances for the year 2018:
Postage stamps 3,000
3 month-Time deposit 10,000
Coins and Currencies 15,000
BDO Savings Account 50,000
Checks 25,000
Postdated customer checks 10,000
Sinking Fund (if silent, NCA) 100,000
Treasury bill purchased 12/1/2018, maturing 2/28/2019 800,000
Money market instruments (If silent, CE) 150,000
Plant Expansion Fund 500,000
Money orders 50,000
Petty cash fund 10,000
Bank drafts 25,000
IOUs 5,000
Treasury Bond, purchased 3/1/2018, maturing 2/28/2019 250,000
Preference share redemption fund 50,000
Tax Fund 50,000
Payroll Fund 300,000
Redeemable preference share, purchased 11/1/2018 due on 3/1/2019 350,000

1. How much should be reported as CASH for the year 2018?

2. How much should be reported as CASH EQUIVALENTS for the year 2018?

Problem 2. At year end of 2015, SUPERA Company reported cash and cash equivalents which comprised
the following:
Cash on hand 500,000
Demand deposit 4,000,000
Certificate of deposit 2,000,000
Postdated customer check 300,000
Petty cash fund 50,000
Traveler’s check 200,000
Manager’s check 100,000
Money order 150,000
Time deposit, purchased December 15, 2015
and due March 15, 2016 2,000,000

The cash on hand included a P200,000 check payable to JICEL, dated January 15, 2016.

3. What total amount should be reported as “cash” at year-end?

4. What total amount should be reported as “cash equivalents” at year end?

Problem 3. TORQUEDO Company reported the following:

Bond sinking fund 1,500,000
Checking account in BPI (A P320,000 check is
still outstanding per bank statement) . 3,155,000
Currency and coins awaiting deposit 1,135,000
Petty cash fund including paid vouchers of 15,000 50,000
Receivables from officers and employees 175,000
Deposit in a bank closed by BSP 500,000
Treasury bill, purchased November 1, 2015
maturing January 31, 2016 3,500,000
Time deposit purchased December 1, 2015
maturing March 31,2016 4,000,000

5. What total amount of cash should be reported under current assets?

Problem 4. FORMENTERA Company shows the following account balances in their financial records as
of December 31, 2014:
Checking account at Morgan Bank (20,000)
Checking account at Land Bank 500,000
Payroll-account- National Bank 100,000
Foreign bank account-restricted 750,000
Postage stamps 22,000
Employees’ postdated checks 30,000
I.O.U. from president’s brother 75,000
Traveler’s check 50,000
No-sufficient fund check 18,000
 Petty cash fund (16,000 in currency & Expenses receipts for 84,000) 100,000
Cashier’s checks 36,000

6. What is the correct cash balance to be reported in the statement of financial position of
FORMENTERA Company on December 31, 2014 assuming the bank overdraft is repayable on demand
and it’s integral to the entity’s cash management?

Problem 5. On December 31, 2014, AGNES Company has the following information concerning its cash
and cash equivalents and some other items:
Coins and currency 50,000
Checks receive from customer 600,000
Certificate of deposit, term: 12 months 800,000
Petty cash fund 4,000
Postage stamps 600
Bank A acct.1, checking account balance 2,100,000
Post-dated check, customer 10,000
Money order from customer 15,000
Cash in savings account 100,000
Bank draft from customer 40,000
Utility deposit to gas company, refundable 5,000
Cash advance received from customer 8,000
NSF check, C. company 20,000
Cash advance to company executive, collectible upon demand 200,000
Bank A-acct 2, checking account, overdraft 20,000
IOUs from employees 12,000

7. What amount of cash and cash equivalents should AGNES Company report in its December 31, 2014
statement of financial position?

Problem 6. DELANTAR Company reported checkbook balance on December 31, 2015 at P4,000,000.
* A customer check amounting to P200,000 dated January 2, 2016 was included in the December 31, 2015
checkbook balance
* Another customer check for P500,000 deposited on December 22, 2015 was included in the checkbook
balance but returned by the bank for insufficiency of fund. This check was redeposited on December 26,
2015 and cleared two days later.
* A P400,000 check payable to supplier dated and recorded on December 30, 2015 was mailed on January 16,
2016.
* A petty cash fund of P50,000 comprised the following on December 31, 2015:
Coins and currencies 5,000
Petty cash vouchers 43,000
Return value of 20 cases of soft drinks 2,000
* A check of P43,000 was drawn on December 31, 2015 payable to Petty Cash.

8. What total amount should be reported as cash on December 31, 2015?

Problem 7. If a petty cash fund is established in the amount of P250, and contains P200 in cash and P45 in
receipts for disbursements when it is replenished,

9. The journal entry to record replenishment should include credit to the following accounts.
a. Petty Cash, P45.
b. Petty Cash, P50.
c. Cash, P45; Cash Over and Short, P5.
d. Cash, P50.