Problem 1: Cash Valuation / ComputationChecking account at PGOLD Bank (20,000)Checking account at Land Bank 500,000Payroll Account - Common Wealth Bank 100,000Foreign Bank Account - restricted 750,000Postage Stamps 22,000Employees post-dated checks 30,000I.O.U's from Comptroller's relatives 75,000Traveler's Checks 50,000NSF Checks 18,000Petty Cash Fund (P16,000 in currency, expense receipts P 84,000) 100,000Cashier's Checks 36,000Requirements:1. What is the correct cash balance to be reported in the statement of financial position of Tonton Comoany on December 31,2019?2. What is the correct cash balance to be reported in the statement of financial position of Tonton Company on December 31,2019 assuming the bank overdraft is repayable on demand and its integral to the entitys cash management?

Cash is one of the important current asset being used in business. It includes all cash in hand…

Answered: Problem 1: Cash Valuation / Computation…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 60BPSB

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Problem 1: Cash Valuation / Computation

Checking account at PGOLD Bank		(20,000)
Checking account at Land Bank		500,000
Payroll Account - Common Wealth Bank		100,000
Foreign Bank Account - restricted		750,000
Postage Stamps		22,000
Employees post-dated checks		30,000
I.O.U's from Comptroller's relatives		75,000
Traveler's Checks		50,000
NSF Checks		18,000
Petty Cash Fund (P16,000 in currency, expense receipts P 84,000)		100,000
Cashier's Checks		36,000

Requirements:

1. What is the correct cash balance to be reported in the statement of financial position of Tonton Comoany on December 31,2019?

2. What is the correct cash balance to be reported in the statement of financial position of Tonton Company on December 31,2019 assuming the bank overdraft is repayable on demand and its integral to the entitys cash management?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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