Fundamentals of Financial Accounting
5th Edition
ISBN: 9781259140259
Author: PHILLIPS
Publisher: MCG
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Chapter 5, Problem 5.14ME
To determine
To mention: Whether the given items should be reported as cash and cash equivalents by indicating Yes, or, No
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Indicate (Yes or No) whether each of the following is properly included in Cash and CashEquivalents._______ 1. $10,000 of government Treasury bills purchased 10 days prior to their maturity._______ 2. $50,000 of government Treasury bills purchased to satisfy a legal requirement to setaside funds for a landfill cleanup._______ 3. $10,000 of cash owed by customers on sales made within 20 days of year-end._______ 4. $1,000 of cash in the petty cash custodian’s locked cash box.
On December 31, 2020, Hunter X Hunter Company reported cash of P12,350,000 which comprised the following:
Undeposited collections PhP 500,000
Cash in bank – BDO checking account 3,000,000
Undeposited NSF check received from the customer,
dated December 1, 2020 250,000
Undeposited check from a customer, dated
January 15, 2021 400,000
Cash in bank – BDO fund for payroll 2,000,000
Cash in bank – BDO money market instrument, 90 days 3,000,000
Cash in foreign bank restricted…
You are placed in charge of a $200 petty cash fund. On December 31, 20-2, at the end of the fiscal year, $30 in currency and coin remain in the fund. The expenditures from the fund up to this point were $105 for office supplies and $65 for delivery expense (ignore HST). You do not have the fund replenished until January 6, 20-3. (A-8) Explain why the petty cash fund should have been replenished on December 31, 20–2. Quote the above situation in detail and do the journal entry
Chapter 5 Solutions
Fundamentals of Financial Accounting
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - What aspect(s) of the Sarbanes-Oxley Act might...Ch. 5 - Prob. 7QCh. 5 - What are the five components of an internal...Ch. 5 - Prob. 9QCh. 5 - Why is it a good idea to assign each task to only...
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - Prob. 15QCh. 5 - Prob. 16QCh. 5 - What is the primary internal control goal for cash...Ch. 5 - Prob. 18QCh. 5 - Prob. 19QCh. 5 - Prob. 20QCh. 5 - Prob. 21QCh. 5 - Prob. 22QCh. 5 - Prob. 23QCh. 5 - Prob. 24QCh. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Which of the following internal control principles...Ch. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 5.1MECh. 5 - Prob. 5.2MECh. 5 - Prob. 5.3MECh. 5 - Prob. 5.4MECh. 5 - Prob. 5.5MECh. 5 - Prob. 5.6MECh. 5 - Prob. 5.7MECh. 5 - Prob. 5.8MECh. 5 - Prob. 5.9MECh. 5 - Prob. 5.10MECh. 5 - Prob. 5.11MECh. 5 - Prob. 5.12MECh. 5 - Prob. 5.13MECh. 5 - Prob. 5.14MECh. 5 - Prob. 5.15MECh. 5 - Prob. 5.16MECh. 5 - Identifying Internal Control Principle and...Ch. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.1CPCh. 5 - Prob. 5.2CPCh. 5 - Prob. 5.3CPCh. 5 - Prob. 5.4CPCh. 5 - Prob. 5.1PACh. 5 - Prob. 5.2PACh. 5 - Prob. 5.3PACh. 5 - Prob. 5.4PACh. 5 - Prob. 5.1PBCh. 5 - Prob. 5.2PBCh. 5 - Prob. 5.3PBCh. 5 - Prob. 5.4PBCh. 5 - Recording Transactions and Adjustments,...Ch. 5 - Prob. 5.1SDCCh. 5 - Prob. 5.2SDCCh. 5 - Ethical Decision Making: A Real-Life Example When...Ch. 5 - Ethical Decision Making: A Mini-Case You are an...Ch. 5 - Accounting for Cash Receipts, Purchases, and Cash...
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- Record the following transactions: A. Started a petty cash fund in the amount of $1,000. B. Replenished petty cash fund using the following expenses: Auto $61, Office Expenses $23, Postage Expense $57, Miscellaneous Expenses $30. C. The company has decided to reduce the petty cash fund to $600.arrow_forwardThe following are data of Taehyung Inc.: The petty cash fund was established on May 2, 2019, in the amount of P10,000. The expenditures from the fund by the custodian as of May 31, 2019, were evidenced by approved petty cash vouchers for the following: various office supplies- P3,920; IOUs from employees- P1,200; shipping charges- P2,298; miscellaneous expenses- P1,526. On May 31, 2019, the petty cash fund was replenished and increased to P12,000; currency and coins in the fund at that time totaled P756. The journal entry to record the replenishment of and increase in petty cash fund includes a credit toarrow_forwardPetty Cash Fund Kingery Ltd. maintains a balance of $3,000 in its petty cash fund for routine purchases such as supplies. During the year, Kingery's employees paid for various office supplies and food purchases for office birthdays. As a result, Kingery's petty cash account has a balance of $374 on December 31, 2022. At the end of each year, Kingery replenishes the petty cash in full. Kingery classifies all petty cash transactions as miscellaneous expense. Required: Prepare a journal entry to record the replenishment of the petty cash fund.arrow_forward
- The Head of the Agency approves the establishment of a P30,000 petty cash fund. Here are the following information for the monthly petty expenses as well as the cash count: Coins and Currencies 7,800 Office Supplies Expense 3,400 Fuel and Oil 10,500 Postage and Courier Expenses 1,900 Maintenance and Operating Expenses 4,000 a. Give the journal entries pertaining to the establishment of the PCF. b. Give the journal entries when the PCF is replenished. c. The journal entries if the PCF is not replenished. d. The journal entries if the PCF is closed. e. How much is the cash shortage(overage)? f. How is the shortage or overage accounted? g. The journal entries for the cash shortage(overage).arrow_forwardTRESE Co. provided the following information about the composition of its cash on December 31. 2020: · Commercial savings account of P600,000 and a commercial checking account balance of P900,000 are held at BPI. · Money market fund account held by Citibank that permits Eastern to write checks in this balance, P5,000,000. · Travel advances of P180,000 for executive travel for the first quarter of next year (employee to pay through salary deduction) · A separate cash fund in the amount of P1,500,000 is restricted for the retirement of long-term assets. · Petty cash fund, P10,000 What is the correct amount of cash and cash equivalents TRESE Company should report in its December 31, 2020 statement of financial position?arrow_forwardGrand Company's fiscal year ends on June 30. Its petty cash fund was established for an amount of P15,000. A surprise count of the fund on July 4, 2021 showed the following:Currencies - P5,600Coins - P450Paid vouchers of office supplies (dated June 28, 2021) - P1,550Paid vouchers for newspaper subscriptions for two weeks (dated June 29, 2021) - P300Loans to employees - P3,000Company check representing replenishment of the petty cash fund - P3,850How much is the shortage or overage in the petty cash fund at June 30, 2021?arrow_forward
- Grand Company's fiscal year ends on June 30. Its petty cash fund was established for an amount of P15,000. A surprise count of the fund on July 4, 2021 showed the following:Currencies - P5,600Coins - P450Paid vouchers of office supplies (dated June 28, 2021) - P1,550Paid vouchers for newspaper subscriptions for two weeks (dated June 29, 2021) - P300Loans to employees - P3,000Company check representing replenishment of the petty cash fund - P3,850How much is the shortage or overage in the petty cash fund at June 30, 2021? a. P250 shortage b. P250 overage c. P1,800 shortage d. P1,800 overagearrow_forwardElegant Company's fiscal year ends on June 30. Its petty cash fund was established for an amount of P15,000. A surprise count of the fund on July 4, 2021 showed the following:Currencies - P5,600Coins - P450Paid vouchers of office supplies (dated July 2, 2021) - P1,550Paid vouchers for newspaper subscriptions for two weeks (dated June 29, 2021) - P300Loans to employees - P3,000Company check representing replenishment of the petty cash fund - P3,850What is the correct amount of the petty cash fund at June 30, 2021?arrow_forward1. The following data appear in the list that comprise the line item "Cash and Cash Equivalents" of ABC Company as of December 31, 2002. ABC Company classifies as cash equivalents financialinstruments maturing within three months.• Cash in Metrobank, as reported at year-end, per books- P525,800• Cash on hand- P88,250; Petty cash fund- P10,000• Treasury bills purchased four months ago and maturing two months after the end of the reportingperiod- P50,000• Treasury bills purchased a month ago and maturing one month after the end of the reportingperiod- P125,000• Redeemable preference shares of ABC Company purchased four months ago and maturingone month after the end of the reporting period- P75,000• Convertible preference shares of ABC Company purchased one month ago- P45,000 A review of the bank statement from Metrobank at December 31 shows that there are outstanding checks of P33,500; bank service charges for the month of December of P850; and a customer's DAIF check of P22,000. Cash…arrow_forward
- Related data of Jamaica Company on December 31, 2020: Petty cash fund P50,000 Cash on hand 500,000 Cash in bank - current account 4,000,000 Cash in bank - payroll account 1,000,000 Time deposit 2,000,000 Cash in bank - restricted account for plant addition; expected to be disbursed in early 2021 500,000 Cash in the sinking fund for bond payable due June 30, 2021 1,500,000 Additional notes: The petty cash fund included unreplenished December 31, 2020 petty cash expense vouchers of 5,000 and employee IOU (I Owe You) of 5,000. The cash on…arrow_forwardRaffy Tulfo In Action (RTIA) appointed Shelwyn as its petty cash custodian. As at December 31, 2020, the petty cash amounted to P50,000 and is consisted of the following:Check drawn payable to Shelwyn to replenish the fund P20,000Customer check received for payment of an account 10,000Grab and uber receipts incurred by RTIA staffs 5,000Note pledged by Brill, an employee of RTIA 5,000Currency and coins 5,000Envelope containing contributions for RTIA staff's dinner 5,000As at December 31, 2020, what is the amount to be reported as petty cash in RTIA's statement of financial position?arrow_forwardDelta Automotive Corporation has the following assets listed in its 12/31/2024 trial balance: Cash in bank—checking account $ 29,500 U.S. Treasury bills (mature in 60 days)* 7,000 Cash on hand (currency and coins) 2,050 U.S. Treasury bills (mature in six months)* 17,000 Undeposited customer checks 2,540 *Purchased on 11/30/2024 Required: Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. For each of the items not included in your answer to requirement 1, select the correct classification of the item.arrow_forward
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