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  • Answers of Cash and Cash Equivalents Assignment

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    Gee Lysa Pascua Vilbar
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    1) Albania Company reported cash and cash equivalents totaling $3,720,000 on December 31, 2020. This amount included cash in bank, but excluded money market placements and sinking funds due beyond 1 year as they are considered non-current assets. 2) Argentina Company reported cash and cash equivalents totaling $4,185,000 on December 31, 2020. This excluded treasury bills due beyond 120 days and bond sinking funds which are non-current, as well as time deposits set aside for land acquisition. 3) Armenia Company reported total cash of $5,257,000 on December 31, 2020. 4) Callous Company reported cash and cash equivalents totaling $11

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    Conceptual Framework and Accounting Standard - BSA First Year

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    1) Albania Company reported cash and cash equivalents totaling $3,720,000 on December 31, 2020. This amount included cash in bank, but excluded money market placements and sinking funds due beyond 1 year as they are considered non-current assets. 2) Argentina Company reported cash and cash equivalents totaling $4,185,000 on December 31, 2020. This excluded treasury bills due beyond 120 days and bond sinking funds which are non-current, as well as time deposits set aside for land acquisition. 3) Armenia Company reported total cash of $5,257,000 on December 31, 2020. 4) Callous Company reported cash and cash equivalents totaling $11

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    10K views4 pages

    Answers of Cash and Cash Equivalents Assignment

    Uploaded by

    Gee Lysa Pascua Vilbar
    1) Albania Company reported cash and cash equivalents totaling $3,720,000 on December 31, 2020. This amount included cash in bank, but excluded money market placements and sinking funds due beyond 1 year as they are considered non-current assets. 2) Argentina Company reported cash and cash equivalents totaling $4,185,000 on December 31, 2020. This excluded treasury bills due beyond 120 days and bond sinking funds which are non-current, as well as time deposits set aside for land acquisition. 3) Armenia Company reported total cash of $5,257,000 on December 31, 2020. 4) Callous Company reported cash and cash equivalents totaling $11

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    of 4

    Problem 1-1 (IAA)

    On December 31, 2020, Albania Company provided the following data:


    Cash in bank 3,000,000
    Time deposit – 30 days 1,000,000
    Money market placement due on June 30, 2021 2,000,000
    Saving deposit in closed bank 100,000
    Sinking fund for bond payable due June 30, 2022 1,500,000
    Petty cash fund 20,000

    Adjusting Entries:
    Accounts Receivable 200,000
    Cash in bank 200,000

    Cash in bank 250,000


    Accounts Payable 250,000

    Cash in bank 100,000


    Accounts Payable 100,000

    Accounts Receivable 450,000


    Cash in bank 450,000

    Total amount of cash and cash equivalents:


    P 3,720,000

    Explanation:
    The money market placement and sinking fund for bond payable both due on June 30,
    2021 are not included because they are non-current assets (temporary investments).
    The saving deposit is also not included because the bank closed.

    Problem 1-2 (IAA)


    Argentina Company recorded the following accounts on December 31, 2020:
    Cash on hand 1,000,000
    Petty cash fund 50,000
    Security Bank current account 2,000,000
    PNB current account 1,500,000
    BDO current account (overdraft) ( 200,000)
    BSP treasury bill – 120 days 3,000,000
    BPI time deposit – 90 days 2,000,000
    Bond sinking fund 2,500,000

    Adjusting Entries:
    Accounts Payable 150,000
    Cash on hand 150,000

    Expenses 10,000
    Receivable from employee 5,000
    Petty cash fund 15,000

    Total amount of cash and cash equivalents:


    P 4,185,000

    Explanation:
    The BSP treasury bill and bond sinking fund is not included because they are non-current
    assets (temporary investments). The BPI time deposit is not included because all though
    it is a current asset, it is set aside for acquisition of land.
    Problem 1-3 (IAA)
    Armenia Company reported the following information on December 31, 2020:
    Cash on hand 1,000,000
    Petty cash fund 50,000
    Cash in bank 4,000,000
    Saving deposit 2,000,000

    Adjusting Entries:
    Accounts Receivable 100,000
    Cash on hand 100,000

    Accounts Receivable 150,000


    Cash on hand 150,000

    Advances to officers 10,000


    Receivable from cashier 33,000
    Petty cash fund 43,000

    Cash in bank 200,000


    Accounts payable 200,000

    Cash in bank 300,000


    Accounts payable 300,000

    Total cash:
    P 5,257,000

    Problem 1-4 (PHILCPA Adapted)


    Callous Company reported the following accounts on December 31, 2020:
    Cash on hand 200,000
    Petty cash fund 20,000
    Philippine Bank current account 5,000,000
    City Bank current account No. 1 4,000,000
    City Bank current account No. 2 (overdraft) ( 100,000)
    Asia Bank saving account 250,000
    Asia Bank time deposit, 90 day 2,000,000

    Adjusting Entries:
    Accounts Receivable 35,000
    Cash on hand 35,000

    Accounts Receivable 15,000


    Cash on hand 15,000

    Advances to Officers 2,000


    Expenses 12,000
    Cash short or over (due from cashier) 1,000
    Petty Cash Fund 15,000

    Cash on hand 25,000


    Accounts Payable 25,000

    Cash on hand 45,000


    Accounts Payable 45,000

    Total amount of cash and cash equivalents:


    P 11,375,000

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