NAME: ______________________________________________

DATE:___________________

PART I. Determine the total cash and cash equivalents.

Current account at Metrobank
Overdraft with BPI secured by a Chattel mortgage on the
inventories
Savings account at Metrobank
Payroll account
Managers check
Foreign bank account unrestricted (in Philippine peso)
Postage stamps
Employees post dated check
IOU from controllers sister
Credit memo from a vendor for purchase return
Travelers check
Money order
Petty cash fund (4,000 coins & currencies, 5,000 paid vouchers,
employees check for 2,000 dated 01/15/2015, check named to
petty cash custodian for 6,000)
Treasury bills, due 03/30/2015 (purchased 12/29/2014)
Treasury bills, due 01/31/2015 (purchased 02/01/2014)
Demand deposit
Commercial savings account at PS Bank
Commercial checking account at PS Bank
Travel advances for executive travel
Cash fund restricted for the retirement of a long-term debt
IOU from a company officer
Certificates of deposit with maturity of 120 days
Customers check received 12/21/2014 dated 01/02/2015
Compensating balance on Metrobank current account to be
maintained at all times to ensure future credit availability
Cash collection not yet deposited
Check drawn by the Vice President of the Company dated
01/15/2015
Check drawn by a supplier dated 12/28/2014 for goods returned
by the Company
Check dated 05/31/2014 drawn by the Company against BPI in
payment of custom duties. Since the importation did not
materialize, the check was returned by the customs broker. This
check was an outstanding check in the reconciliation of BPI.
Foreign bank account restricted (in Philippine peso)
Time deposit 30 days
NSF check of customer
Money market placement (due 06/30/2015)
Savings deposit in a closed bank
Pension fund
Customers check outstanding for 18 months
ANSWER:
TOTAL CASH & CASH EQUIVALENTS AS OF 12/31/2014

500,000
100,000
250,000
75,000
10,000
300,000
5,000
2,000
11,000
7,500
11,500
13,000
10,000

8,000
9,000
95,000
30,000
67,000
11,500
45,000
6,700
9,600
7,500
100,000
85,000
6,700
14,500
150,000

300,000
15,400
9,700
16,500
14,200
17,900
4,800
P

NAME: ______________________________________________

DATE:___________________

NAME: ______________________________________________

DATE:___________________

PART II. Indicate whether the given scenario can be considered as part of cash
and cash equivalents. If your answer is NOT INCLUDED, explain WHY.
1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.
12.

Check of P2,000,000 in payment of

accounts
payable
was
recorded
in
12/31/2014 but mailed to suppliers on
01/05/2015
Check of P1,000,000 dated 01/15/2015 in
payment of accounts payable was recorded
and mailed on 12/31/2014
The Company uses the calendar year. The
cash receipts journal was held open until
01/15/2015, during which time P4,000,000
was collected and recorded on 12/31/2014.
The sales book was left open up to
01/05/2015, and cash sales totaling
P1,200,000 were considered as sales in
December.
Checks of P74,400 in payment of liabilities
were
prepared
before
12/31/2014,
recorded in the books, but not mailed or
delivered to payees.
Post-dated checks totaling P62,400 are
being held by the Cashier as part of Cash.
The companys experience shows that
post-dated checks are eventually realized.
Customers check for P12,000 deposited
but
returned
by
Bank,
NSF
on
12/27/2014
The Cash account includes P320,000
earmarked for the purchase of personal
computers which will soon be delivered.
Customers check for P40,000 returned by
bank on 12/26/2014 due to insufficient
fund but subsequently redeposited and
cleared by the bank on 01/08/2015
Customers check for P80,000 returned by
bank on 12/29/2014 due to insufficient
fund but subsequently redeposited and
cleared by the bank on 12/31/2014
Customers check for P20,000 dated
01/02/2015, received on 12/29/2014.
Postal money orders received from
customers, P30,000.