2. The following accounts appear on the adjusted trial balance of Hanofi Company on December 31, 2019: Petty cash fund Payroll fund Sinking fund cash Sinking fund securities 10,000 100,000 500,000 1,000,000 3,000,000 50,000 700,000 Investment in bonds Accrued interest receivable- trading securities Plant expansion fund Cash surrender value of life insurance 80,000 Investment property- land Advances to subsidiary 2,000,000 200,000 Interest in joint venture 800,000 40,000 130,000 Trading securities -ALI Financial Assets -FVOCI a) Determine how much should be included in cash and cash equivalent. b) Determine how much should be included in current assets – investments. c) Determine how much should be included as non-current investments. d) If not part of the above classifications, determine the treatment of the accounts in the financial statements. Example – Interest Receivables- P20,000 – Receivables under current asset.
2. The following accounts appear on the adjusted trial balance of Hanofi Company on December 31, 2019: Petty cash fund Payroll fund Sinking fund cash Sinking fund securities 10,000 100,000 500,000 1,000,000 3,000,000 50,000 700,000 Investment in bonds Accrued interest receivable- trading securities Plant expansion fund Cash surrender value of life insurance 80,000 Investment property- land Advances to subsidiary 2,000,000 200,000 Interest in joint venture 800,000 40,000 130,000 Trading securities -ALI Financial Assets -FVOCI a) Determine how much should be included in cash and cash equivalent. b) Determine how much should be included in current assets – investments. c) Determine how much should be included as non-current investments. d) If not part of the above classifications, determine the treatment of the accounts in the financial statements. Example – Interest Receivables- P20,000 – Receivables under current asset.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 14P
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