CASH AND CASH EQUIVALENT

Leona Company had the following account balances on December 31, 2011:

Cash in Bank- current account 4,000,000.00

Cash in Bank- payroll account 1,500,000.00

Cash on Hand 500,000.00

Cash in Bank- restricted for equipment acquisition on 2012 1,000,000.00

Treasury bill purchased November 1, 2011 to mature on February 1, 2012 2,000,000.00

The cash on hand includes a P 200,000 customer check payable to Leona Company,

dated January 15, 2012. What should be reported as “cash and cash equivalents” on

December 31, 2011?

a. P 9,000,000 c. P 8,800,000

b. P 7,800,000 d. P 5,800,000

B

On December 31, 2011, Tigres Company had the following cash balances:

Cash in Bank 5,000,000.00

Petty Cash Fund 50,000.00

Time Deposit, one year, due March 1,

2012 1,000,000.00

Saving Deposit 500,000.00

A check of P 100,000 dated January 15, 2012 in payment of accounts payable was

recorded and mailed on December 28, 2011. How much “cash and cash equivalents” should be reported on December 31, 2011?

a. P 6,550,000 c. P 5,650,000

b. P 6,650,000 d. P 5,450,000

C

The “cash” account in Jen Company’s ledger on December 31, 2011 showed a balance of P 5,250,000 which included the following:

Petty Cash Fund 50,000.00

Undeposited receipts, including a post-dated customer check of P200,000 1,300,000.00

Cash in Bank 2,500,000.00

Cash in Sinking Fund 1,000,000.00

Expenses paid out of collections, not yet recorded 250,000.00

IOUs signed by employees 150,000.00

Total ————————— 5,250,000.00

At what amount should Jen Company report as “cash” in the December 31, 2011

statement of financial position?

a. P 3,650,000 c. P 4,650,000

b. P 3,850,000 d. P 4,050,000

A

Enipr Company had the following account balances at December 31, 2011:

Cash on Hand and in Bank 5,000,000.00

Cash restricted for bond payable due on June 30, 2013 2,000,000.00

Time Deposit 6,000,000.00

Saving deposit set aside for dividend payable on June 30, 2012 1,000,000.00

In the December 31, 2011 statement of financial position, what total amount should be

reported as “cash and cash equivalents”?

a. P 12,000,000 c. P 11,000,000

b. P 14,000,000 d. P 13,000,000

A