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What amount should be reported as Cash and Cash Equivalents? a. 3,548,000 b. 3,423,000 c. 3,523,000 d. 3,448,000   2. How much from the information above should be presented as part of liability? a. Zero b. 200,000 c. 2,175,000 d. 2,200,000

What amount should be reported as Cash and Cash Equivalents? a. 3,548,000 b. 3,423,000 c. 3,523,000 d. 3,448,000   2. How much from the information above should be presented as part of liability? a. Zero b. 200,000 c. 2,175,000 d. 2,200,000

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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1. What amount should be reported as Cash and Cash Equivalents?

a. 3,548,000

b. 3,423,000

c. 3,523,000

d. 3,448,000

 

2. How much from the information above should be presented as part of liability?

a. Zero

b. 200,000

c. 2,175,000

d. 2,200,000

At year-end, CB Inc. had the following account balances on December 31, 2018. Petty Cash fund Cash in Bank- BPI Current account Cash in Bank- BDO Current account Cash in Bank- Sinking Fund Cash on Hand Cash in bank- restricted for acquisition Treasury Bills 25,000 2,700,000 (200,000) 1,950,000 280,000 PPE 1,500,000 575,000 The petty cash fund included unreplenished December 2018 petty cash expense vouchers of P5,000 and employee IOU of P2,000 and also includes an envelope with a note "Donations for Christmas Party for a total of P5,000". The envelope has no cash inside. The Cash on hand included check payable to CB Inc. dated January 15, 2019 amounting to P150,000 and check in payment to suppliers amounting to P25,000 which was not yet mailed as of December 31. It was determined that the Donations for Christmas party was not included in the cash on hand. The current account of CB inc. from BPI also includes a P100,000 minimum maintaining balance. Failure to maintain the balance would only result to penalties thereof to the company from the bank. The bond sinking fund is set aside to pay a corresponding bond payable of the same amount dated January 15, 2021.
Transcribed Image Text:At year-end, CB Inc. had the following account balances on December 31, 2018. Petty Cash fund Cash in Bank- BPI Current account Cash in Bank- BDO Current account Cash in Bank- Sinking Fund Cash on Hand Cash in bank- restricted for acquisition Treasury Bills 25,000 2,700,000 (200,000) 1,950,000 280,000 PPE 1,500,000 575,000 The petty cash fund included unreplenished December 2018 petty cash expense vouchers of P5,000 and employee IOU of P2,000 and also includes an envelope with a note "Donations for Christmas Party for a total of P5,000". The envelope has no cash inside. The Cash on hand included check payable to CB Inc. dated January 15, 2019 amounting to P150,000 and check in payment to suppliers amounting to P25,000 which was not yet mailed as of December 31. It was determined that the Donations for Christmas party was not included in the cash on hand. The current account of CB inc. from BPI also includes a P100,000 minimum maintaining balance. Failure to maintain the balance would only result to penalties thereof to the company from the bank. The bond sinking fund is set aside to pay a corresponding bond payable of the same amount dated January 15, 2021.
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