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Iacc 1 - Quizzer Cash and Cash Equivalent
Iacc 1 - Quizzer Cash and Cash Equivalent
Problem 1
On December 31, 2018, Revel Inc.’s cash and cash equivalent account balance per ledger of P5,700,00
includes:
PARTICULAR AMOUNT
Manager’s check Php 70,000
Traveler’s check 100,000
Treasury note 50,000
Treasury shares purchased on 12/1/2018 to be reissued on 3/1/2019 150,000
Escrow deposit 200,000
Bank drafts 20,000
Postal money order 20,000
Demand deposit 100,000
Treasury bills purchase 12/16/18 due 03/15/2019 50,000
160-day treasury bill 30,000
Time deposit – PCIB one year due 03/31/2019 180,000
Time deposit – PNB 90 days 170,000
Time deposit – BPI 120 days 45,000
Money market instrument due – 02/28/2019 40,000
Money market instrument due – 6/1/2019 70,000
Cash in bank – Metrobank, which includes a compensating balance of 1,050,000
P50,000 for short-term borrowing arrangement. The compensating balance
is not legally restricted as to withdrawal.
Cash in bank – Metrobank (100,000)
Cash in bank – LBP, which includes a compensating balance of P50,000 for 450,000
long-term borrowing arrangement. The compensating balance is legally
restricted as to withdrawal.
Cash in bank – Second bank (60,000)
Cash in bank – BDO, which includes a compensating balance of P40,000 for 150,000
short-term borrowing arrangement. The compensating balance is legally
restricted as to withdrawal.
Cash in bank – Robinsons bank, which includes a compensating balance of 250,000
P40,000 for short-term borrowing arrangement.
Petty cash fund including an unreplinished voucher amounting to P4,000 10,000
Payroll fund 100,000
Travel fund 20,000
Interest fund 40,000
Tax fund 30,000
Sinking fund 420,000
Preferred redemption fund 100,000
Contingent fund 200,000
Insurance fund 500,000
Fund for acquisition of property, plant and equipment to be disbursed in 800,000
2019
IOUs 20,000
Customer’s postdated checks 70,000
Customer’s checks returned by bank marked as NSF 20,000
Redeemable preferred shares – acquired 3 months before maturity date 15,000
Unused credit line 200,000
Revolving fund 100,000
Visa-card credit limit 20,000
TOTAL 5,700,000
How much cash and cash equivalents should Revel Inc report in the statement of financial position as
of December 31, 2018?
Particulars Amount
Postage stamps 1,000
Customer postdated checks 4,000
IOUs 10,000
Credit memo from a vendor for a purchase return 20,000
Traveler’s check 50,000
Postal money order 30,000
Petty cash fund – P4,000 in currency and expense receipts of P6,000 10,000
Treasury bills due 03/31/2019 (purchased 12/31/2018) 200,000
Treasury bills due 01/31/2019 (purchased 01/31/2018) 300,000
Listed stock held as temporary investments 15,000
Current account in Metrobank 2,000,000
Current account in BPI (100,000)
Payroll account 500,000
Foreign bank account – restricted (in equivalent peso) 1,000,000
Treasury warrants 300,000
How much cash and cash equivalents should Kerry Corp report in the statement of financial position
as of December 31, 2018?
Problem 3
The cash account of Ria on December 31, 2018 has a balance of P151,000 and it consists of the
following: