Charis Marie F.

Urgel BSA – IV

“CASH AND CASH EQUIVALENTS”

PROBLEM NO. 1 – Composition of cash and cash equivalents

The following data pertain to PRTC Corporation at December 31, 2015:

Current account at Metrobank P 1,800,000

Current account at Allied Bank (100,000)
Payroll account 500,000
Foreign bank account (in equivalent pesos) 800,000
Savings deposit in a closed bank 150,000
Postage stamps 1,000
Employee’s post dated check 4,000
IOU from employees 10,000
Credit memo from a vendor for a purchase return 20,000
Traveler’s check 50,000
Money order 30,000
Petty cash fund (P4, 000 in currency and expense
receipts for P6, 000) 10,000
Pension fund 2,000,000
DAIF check of customer 15,000
Customer’s check dated 1/1/16 80,000
Time deposit – 30 days 200,000
Money market placement (due 6/30/16) 500,000
Treasury bills, due 3/31/16 (purchased 12/31/15) 200,000
Treasury bills, due 1/31/16 (purchased 2/1/15) 300,000

REQUIRED:
Determine the cash and cash equivalents to be reported on the entity’s December 31,
2015 statement of financial position.

SOLUTIONS:
Current account at Metrobank 1,800,000
Payroll account 500,000
Foreign bank account (in equivalent pesos) 800,000
Traveler’s check 50,000
Money order 30,000
Petty cash fund 4,000
Time deposit – 30 days 200,000
Treasury bills, due 3/3/16 (purchased12/31/15) 200,000
Cash and cash equivalents – Dec. 31, 2015 3,584,000