AP - Cash and Cash Equivalents

NAME: ______________________________________________

DATE:___________________

PART I. Determine the total cash and cash equivalents. Current account at Metrobank Overdraft with BPI secured by a Chattel mortgage on the inventories Savings account at Metrobank Payroll account Manager’s check Foreign bank account – unrestricted (in Philippine peso) Postage stamps Employee’s post dated check IOU from controller’s sister Credit memo from a vendor for purchase return Traveler’s check Money order Petty cash fund (4,000 coins & currencies, 5,000 paid vouchers, employee’s check for 2,000 dated 01/15/2015, check named to petty cash custodian for 6,000) Treasury bills, due 03/30/2015 (purchased 12/29/2014) Treasury bills, due 01/31/2015 (purchased 02/01/2014) Demand deposit Commercial savings account at PS Bank Commercial checking account at PS Bank Travel advances for executive travel Cash fund restricted for the retirement of a long-term debt IOU from a company officer Certificates of deposit with maturity of 120 days Customer’s check received 12/21/2014 dated 01/02/2015 Compensating balance on Metrobank current account to be maintained at all times to ensure future credit availability Cash collection not yet deposited Check drawn by the Vice President of the Company dated 01/15/2015 Check drawn by a supplier dated 12/28/2014 for goods returned by the Company Check dated 05/31/2014 drawn by the Company against BPI in payment of custom duties. Since the importation did not materialize, the check was returned by the customs broker. This check was an outstanding check in the reconciliation of BPI. Foreign bank account – restricted (in Philippine peso) Time deposit – 30 days NSF check of customer Money market placement (due 06/30/2015) Savings deposit in a closed bank Pension fund Customer’s check outstanding for 18 months ANSWER: TOTAL CASH & CASH EQUIVALENTS AS OF 12/31/2014

P

500,000 100,000 250,000 75,000 10,000 300,000 5,000 2,000 11,000 7,500 11,500 13,000 10,000

8,000 9,000 95,000 30,000 67,000 11,500 45,000 6,700 9,600 7,500 100,000 85,000 6,700 14,500 150,000

300,000 15,400 9,700 16,500 14,200 17,900 4,800 P

NAME: ______________________________________________

DATE:___________________

NAME: ______________________________________________

DATE:___________________

PART II. Indicate whether the given scenario can be considered as part of cash and cash equivalents. If your answer is NOT INCLUDED, explain WHY. 1.

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Check of P2,000,000 in payment of accounts payable was recorded in 12/31/2014 but mailed to suppliers on 01/05/2015 Check of P1,000,000 dated 01/15/2015 in payment of accounts payable was recorded and mailed on 12/31/2014 The Company uses the calendar year. The cash receipts journal was held open until 01/15/2015, during which time P4,000,000 was collected and recorded on 12/31/2014. The sales book was left open up to 01/05/2015, and cash sales totaling P1,200,000 were considered as sales in December. Checks of P74,400 in payment of liabilities were prepared before 12/31/2014, recorded in the books, but not mailed or delivered to payees. Post-dated checks totaling P62,400 are being held by the Cashier as part of Cash. The company’s experience shows that post-dated checks are eventually realized. Customer’s check for P12,000 deposited but returned by Bank, “NSF” on 12/27/2014 The Cash account includes P320,000 earmarked for the purchase of personal computers which will soon be delivered. Customer’s check for P40,000 returned by bank on 12/26/2014 due to insufficient fund but subsequently redeposited and cleared by the bank on 01/08/2015 Customer’s check for P80,000 returned by bank on 12/29/2014 due to insufficient fund but subsequently redeposited and cleared by the bank on 12/31/2014 Customer’s check for P20,000 dated 01/02/2015, received on 12/29/2014. Postal money orders received from customers, P30,000.