Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS
Tranvia Company had the following balances on December 31, 2020:
Cash in checking account 350,000

Cash in money market account 750,000
Treasury bill, purchased November 1, 2020
maturing January 31, 2021 3,500,000
Time deposit purchased December 1, 2020
maturing March 31, 2021 4,000,000
36. What amount should be reported as cash and cash equivalents on December 31, 2020?
a. 1,100,000
b. 3,850,000
c. 4,600,000
d. 8,600,000
Thor Company provided the following data on December 31, 2020:
Checkbook balance 4,000,000

Bank Statement balance 5,000,000
Check drawn on Thor’s account payable to supplier,
dated and recorded on December 31, 2020 but
not mailed until January 15, 2021 500,000
Cash in sinking fund 2,000,000
37. On December 31, 2020, what amount should be reported as “Cash” under current
assets?
a. 4,500,000
b. 5,500,000
c. 3,500,000
d. 6,500,000
At year-end, Myra 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
Posdated customer check 300,000
Petty cash fund 50,000
Traveler’s check 200,000
Manager’s check 100,000
Money order 150,000
38. What total amount should be reported as “cash” at year-end?

a. 7,000,000
b. 4,800,000
c. 6,800,000
d. 5,000,000
Everlast Company reported the following information at year-end:
 Share investments of P1,000,000 that are very actively traded in the stock market.
 Government treasury bills of P2,000,000 with a 10-year term but purchased on
December 31 at which time they had two months to go until maturity.
 Cash of P3,400,000 in the form of coin, currency, saving account and checking account.
 Commercial papers of P1,500,000 with term of nine months but purchased on December
31 at which time they had three months to go until maturity.
39. What total amount should be reported as cash?

a. 3,400,000
b. 4,900,000
c. 4,400,000
d. 5,400,000
40. What total amount should be reported as cash equivalents?

a. 2,000,000
b. 1,500,000
c. 3,500,000
d. 4,500,000
On December 31, 2020, West Company had the following cash balances:
Cash in bank- current account 1,800,000
Petty cash fund- all funds were reimbursed at year-end 50,000
Time deposit due February 1, 2021
250,000 Time deposit in bank closed by BSP
1,000,000
Cash in bank included P600,000 of compensating balance against short-term borrowing
arrangement on December 31, 2020. The compensating balance is legally restricted as to
withdrawal.
41. On December 31, 2020, what total amount should be reported as cash and cash
equivalents?
a. 2,500,000
b. 1,250,000
c. 2,100,000
d. 1,500,000
Karla Company provided the following information on December 31, 2020:
Cash on hand 500,000
Security Bank current account 1,000,000
PNB Current account No. 1 400,000
PNB Current account No. 2 (overdraft)
(50,000) BSP treasury bill – 60days
3,000,000
 The cash on hand included a customer postdated check of P100,000 and postal
money order of P40,000.
 A check for P200,000 in payment of account was drawn against Security Bank
account, dated January 15, 2019, delivered to the payee and recorded
December 31, 2020.
42. What total amount of cash and cash equivalents should be reported on December 31,
2020?
a. 4,550,000
b. 5,050,000
c. 4,750,000
d. 1,950,000
Ral Company reported the checkbook balance on December 31, 2020 at P5,000,000
and held the following items on same date:
Check payable to Ral, dated January 2, 2021 in

payment of sale made in December 2020, not
included in December 31 checkbook balance 2,000,000
Check payable to Ral, deposited December 15 and included
in December 31 checkbook balance, but returned by
bank on December 30 stamped “NSF.” The check
was redeposited on January 2, 2021 and cleared on
January 9, 2021 500,000
Check drawn on Ral’s account, payable to a vendor, dated and
recorded in Ral’s books on December 31, 2020 but not
mailed until January 10, 2021 300,000
Certficate of time deposit 1,000,000
43. What amount should be reported as cash on December 31, 2020?

a. 4,800,000
b. 5,300,000
c. 6,500,000
d. 5,800,000
On December 31, 2020, Roma Company reported cash of P9,950,000 with the following
details:
Undeposited collections 600,000
Cash in Bank – BDO checking account
4,000,000 Undeposited NSF check received from customer,
dated December 1, 2020
150,000 Undeposited check from a customer,
dated January 15, 2021
250,000 Cash in bank – BDO fund for
payroll 1,000,000
Cash in bank – BDO money market instrument, 90 days 2,000,000
Cash in foreign bank restricted 1,500,000
Cash in bank – BDO value added tax account 450,000
Total 9,950,000
44. On December 31,2020, what total amount should be reported as cash and cash
equivalents?
a. 7,600,000
b. 8,200,000
c. 6,050,000
d. 8,050,000
Yasmin Company provided the following information on December 31, 2020:

Petty cash fund 50,000
Current account – First Bank 4,000,000
Current account – Second Bank (overdraft) (250,000)
Money market placement – Third Bank 1,000,000
Time deposit 2,000,000
 A check for P100,000 was drawn against First Bank current account dated and recorded
December 29, 2020 but delivered to payee on January 15, 2021.
 The Fourth Bank time deposit is set aside for land acquisition in early January 2019.
45. What total amount should be reported as cash and cash equivalents on December 31,
2020?
a. 5,050,000
b. 5,150,000
c. 4,900,000
d. 4,150,000

Cash and Cash Equivalents

Uploaded by

Copyright:

Available Formats

Cash and Cash Equivalents

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cash and Cash Equivalents

Uploaded by

Copyright:

Available Formats

CASH AND CASH EQUIVALENTS

Tranvia Company had the following balances on December 31, 2020:

Cash in checking account 350,000

Thor Company provided the following data on December 31, 2020:

Checkbook balance 4,000,000

Cash on hand 500,000

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

Everlast Company reported the following information at year-end:

39. What total amount should be reported as cash?

40. What total amount should be reported as cash equivalents?

Check payable to Ral, dated January 2, 2021 in

43. What amount should be reported as cash on December 31, 2020?

Yasmin Company provided the following information on December 31, 2020:

You might also like