Cash and Cash Equivalents

1. Julius Co. had the following account balances on Dec. 31, 2021:
Cash in bank 5,200,000
Cash on hand 350,000
Cash fund set aside for dividend payable in 2022 200,000
Cash fund set aside for land acquisition in 2022 1,500,000
The cash in bank included P250,000 compensating balance against short-term borrowing and is
not legally restricted as to withdrawal. The cash on hand included a check of P100,000 payable to
the entity dated January 3, 2022.
What amount should be reported as cash under current assets on the December 31, 2021?

2. Annibelle Company provided the following account balances on December 31, 2021:
Cash in bank 2,250,000
Cash on hand 125,000
Cash restricted for addition to plant expected to be
disbursed in 2022 1,600,000
Cash in money market account 750,000
Treasury bill purchased Nov. 1, 2021 maturing
January 31, 2022 3,500,000
Treasury bill purchased Dec. 1, 2021 maturing
March 31, 2022 2,000,000
Cash in bank included P600,000 of compensating balance against short-term borrowing
arrangement. The compensating balance is not legally restricted as to withdrawal.
What total amount should be reported as cash and cash equivalents on Dec, 31, 2021?

3. Karen Co. provided the following information on December 31, 2021:

Cash on hand 500,000
Petty cash fund 20,000
Security Bank current account 3,000,000
BDO current account no. 1 400,000
BDO current account no. 2 (50,000)
BSP treasury bill – 60 days 4,000,000
BPI time deposit – 30 days 1,000,000
The cash on hand included a customer postdated check of P100,000 and postal money order of
P40,000. A check for P300,000 was drawn against Security Bank account, dated January 15,
2022, delivered to the payee and recorded December 31, 2021. The BPI time deposit is set aside
for acquisition of equipment.
What total amount of cash and cash equivalents should be reported on December 31, 2021?

4. Joan Co. prepared the following bank reconciliation dated June 30 of the current year.
Balance per bank 9,800,000
Deposit in transit 400,000
Outstanding check (1,400,000)
Balance per book 8,800,000
There were total deposits of P6,500,000 and charges for disbursements of P9,000,000 for July per
bank statement. All reconciliation items on June 30 cleared the bank on July 31. Deposits in
transit totaled P900,000 and checks outstanding amounted to P1,000,000 on July 31.
What is the amount of cash in bank to be reported on July 31?
5. Terra Co, used the imprest system in accounting for petty cash fund. The fund had an imprest
balance of P20,000 at year-end which consisted of currency and coins P1,000, employees’
advances P3,000, currency in envelope marked “collections for Christmas party” P2,000, check
drawn by Terra Company payable to petty cashier representing salary P14,000. What is included
in the entry to adjust the petty cash fund at year-end?

6. Delta Corp. has supplied you with the following list of its bank accounts and cash at Dec. 31, 2018:
Checking account (compensating balance of P15,000 without restriction P 48,000
Savings Accounts, 2% 30,000
Certificate of deposit, 5 months 10% due April 20, 2019 60,000
Money market (30-day certificate), current rate, 9.75% 40,000
Payroll account 20,000
Certificate of deposit, 3 months 10% due Feb 15, 2019 75,000
Petty cash 1,500
Total P 274,500
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What should be the balance to be reported as “Cash and Cash equivalents” in the December 31, 2018
statement of financial position of Delta Corp?

7. Following were the account balances of Born Co. at Dec. 31, 2018:
Cash on hand P 187,500
Cash in current and savings accounts 3,375,000
Cash set aside for plant expansion (expected for payment in 2019) 2,400,000
Cash in current and savings accounts includes P900,000 as holdout against short-term loan arrangements.
There are no legal restrictions as to withdrawal by Born on these holdouts. What is the total cash that
should be reported in the current assets section of Born’s Dec 31, 2018 statement of financial position?

8. V Co. had the following cash balance at December 31, 2018:

Undeposited coins and currency P 35,000
Unrestricted demand deposits 1,450,000
Company checks written (and deducted from the demand
deposits amount) but not scheduled to be made until Jan. 2 270,000
Time deposits restricted for use (expected use in 2019) 3,000,000
In exchange for a guaranteed line of credit, V has agreed to maintain a minimum balance of P150,000 in its
unrestricted demand deposits account. How much should V report as “Cash” in its December 31, 2018
statement of financial position?

9. R Co. had the following transactions all throughout the year 2018 which is its first year of operations:
Sales (90% collected in first year) P 1,500,000
Bad debt written-off 60,000
Disbursements for costs and expenses 1,200,000
Disbursements for income taxes 90,000
Purchases of fixed assets 400,000
Depreciation on fixed assets 80,000
Proceeds from issuance of ordinary share 500,000
Proceeds from short-term borrowings 100,000
Payments on short0term borrowings 50,000
What is the cash balance at December 31, 2018?
10. In preparing its bank reconciliation at December 31, 2018, S Company has the following available data:
Balance per bank statement, 12/31/2018 P 38,075
Deposit in transit, 12/31/2018 5,200
Outstanding checks, 12/31/2018 6,750
Amount erroneously credited by bank to
S account, 12/28/2018 400
Bank service charges for December 75
How much is S adjusted cash in bank balance at December 31, 2018?