330183698-Empleo-chapter-2-finacc-1.doc

Chapter 2 – Cash and Cash Equivalents

CHAPTER 2 CASH AND CASH EQUIVALENTS PROBLEMS 2.1

(Money Company)

Checking account in Metrobank Metrobank Savings account at Far East Bank Petty cash un! "1,500 # 250$ Cash on han! "u " un!e%osite! sa&es recei%ts$ Cash in oreign bank "in e(uiva&ent %esos$ Custo*ers+ check on han!  -rave&er+s  -rave&er+s check check Manager+s check  -ota&  -ota& a*ount o cash

P105,200 30,800 1,250 ',200 )5,000 1',000 23,120 P2'3,5.0

/&ternative /&ternative co*%utation e%orte! tota& ess Sinking un! cash Short ter* treasury bi&&s nre%&enishe! %etty cash e%enses Correct cash ba&ance

P330,820 " 35,000$ " 52,000$ " 250$ P2'3,5.0

 -he outstan!ing checks o P15,200 4as si*%&y ignore! since the given ba&ance o  cash is a cash cash ba&ance ba&ance %er books Short6ter* treasury treasury bi&&s bi&&s o P52,000 is re%orte! re%orte! as %art o tra!ing securities un&ess there is an in!ication o a *aturity o three *onths or &ess in 4hich case, it is inc&u!e! as %art o cash an! cash e(uiva&ents e(uiva&ents Mean4hi&e, sinking un! cash o P35,000 is re%orte! as a noncurrent 7nancia& asset 22

(Co!!on Co Company)

e%orte! checkbook ba&ance /!ust*ents Custo*er+s %ost !ate! check inc&u!e! in the ba&ance Custo*er+s check returne! by bank *arke! 9/:F Co*%any check recor!e! but not yet *ai&e! Cash re%orte! on 9ece*ber 31, 200; ba&ance sheet 2"

2&

(#$a%n Co Company) Ba&ance %er genera& &e!ger