Cash and Cash Equivalents 2019

PROBLEMS 3. Vanilla Company established a petty cash fund on June 1, 2017 cashing a check for €200.
During June, the petty cash receipts are as followed:
1. IMPREST SYSTEM June 4 Stamp inventory, 20
The following are provided by the entity: 15 Miscellaneous expense, 30
a. Nov. 10 – Established an imprest fund of P10,000. 20 Freight-out, 40
b. Nov. 29 – Replenished the fund. The petty cash items include the following: 28 Office supplies, 16
i. Currency 2,000 The fund was replenished on June 30, and the fund contained €90. On July 1, the company
ii. Coin 5,000 decided to increase the amount of the fund to €240.
iii. Telephone 1,800
iv. Postage 1,200 Prepare journal entries to record transactions during from June 1, 2017 to July 1, 2017.
c. Dec. 31 – The fund was not replenished. The fund is composed of the following:
i. Currency and Coin P7,000
ii. Supplies P1,500 4. The following data pertain to Lincoln Corporation on December 31, 2019:
iii. Postage P500 Current account at Metrobank P1,800,000
iv. Miscellaneous expense P1,000 Current account at Allied Bank (100,000)
d. Dec. 31 – The fund was replenished. The fund is composed of the following: Payroll account 500,000
i. Currency and Coin P7,000 Foreign bank account (in equivalent pesos)
ii. Supplies P1,500 800,000
iii. Postage P500 Savings deposit in a closed bank 150,000
iv. Miscellaneous expense P1,000 Postage stamps 1,000
Employee’s post dated check 4,000
REQUIREMENT: Provide the journal entries for each transaction. IOU from employees 10,000
Credit memo from a vendor for a purchase return
2. FLUCTUATING SYSTEM 20,000
The following are provided by the entity: Traveler’s check 50,000
a. Nov. 10 – Established a petty cash fund of P10,000. Money order 30,000
b. Nov. 11 – Petty cash disbursements amounted to P8,000. Petty cash fund (P4,000 in currency and expense receipts for P6,000)
c. Nov. 29 – Issued a check for P10,000 to replenish the fund. 10,000
d. Dec. 30 – Petty cash expenses amounted to P9,000 Pension fund 2,000,000
e. Dec. 31 – Issued a check for P15,000 to replenish the fund. DAIF check of customer 15,000
Customer’s check dated 1/1/20 80,000
Requirement: Provide the journal entries for each transaction. Time deposit – 30 days 200,000
Money market placement (due 6/30/20) 500,000
Treasury bills, due 3/31/20 (purchased 12/31/19)
200,000
Treasury bills, due 1/31/20 (purchased 2/1/19)
300,000
The cash and cash equivalents as of December 31, 2019 is

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5. On December 31, 2019, Orma 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 150,000
Undeposited check from a customer, dated January 15, 2020 250,000
Cash in bank - BDO payroll fund 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 VAT account 450,000

Total 9,950,000

On December 31, 2019, what total amount should be reported as cash and cash equivalents?

6. On December 31, 2019, Alfonso Company had the following cash balances:
Cash in bank P15,000,000
Petty cash fund 50,000
Time deposit 5,000,000
Saving deposit 2,000,000
Cash in bank includes P500,000 of compensating balance against short term borrowing
arrangement at December 31, 2019. The compensating balance is legally restricted as to
withdrawal by Alfonso. A check of P300,000 dated January 15, 2020 in payment of accounts
payable was recorded and mailed on December 31, 2019. In the current assets section of the
December 31, 2019 statement of financial position, what amount should be reported as “cash
and cash equivalents”?

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