please help me

Chapter Cash and Cash Equivalents 75 Juded from PROBLEMS s drawn a yable. PROBLEM 1: TRUE OR FALSE 1. Money, whether restricted or not, is presented as cash. d 3 months 2. Postdated checks received from customers are reverted from ents. cash back to receivable. cash equivalen 3. An investment in debt securities that is acquired 3 months or acquired 3 months, less before maturity date is presented as cash equivalent. 4. Checks drawn that are postdated should be reverted back to t liabilities except cash even if the checks are already delivered to the payees. 5. Entity A acquired debt securities 2 years ago. At the reporting estricted are exclud date, the debt securities have a remaining term of 2 months. ricted are included Entity A can present the debt securities as cash equivalents. nsating balances 6. Compensating balances that are legally restricted as to withdrawal by the borrower are excluded from cash. control over ca 7. For best internal control, the duties of cash custody, cash disbursements authorization and cash recording should be lisbursement show delegated to one and same personnel. on embodied in 8. The "Petty Cash Fund" account is credited each time a petty cash disbursement is made. cash overages 9. An entity's petty cash fund (PCF) has an imprest balance of r overage" accou P100. At the end of the period, the PCF consists of P20 coins and currencies. To replenish the PCF, the entity should write a check amounting to P80. 10. An entity's PCF has an imprest balance of P100. At the end of the period, the PCF includes P30 unreplenished disbursements. The amount of PCF to be reported in the financial statements is P70. PROBLEM 2: MULTIPLE CHOICE - THEORY 1. Which of the following should not be included in cash? a. postdated checks drawn and delivered to payees b. checks drawn but not yet delivered to the payees c. postdated checks received from customers d. cash collections not deposited at year-end 2021.1.26 08:23 SHOT ON POCO M376 Chapter 2 Cash and Cash Equivalents 77 2. On October 31, 20x1, Entity A had cash accounts at three C. different banks. One account balance is segregated solely for Shares of stocks to be sold on the first week of January November 15, 20x1 payment into a bond sinking fund. A 20x2; a purchase commitment is already obtained. second account, used for branch operations, is overdrawn. The d. Redeemable preference shares acquired three months prior to the redemption date. third account, used for regular corporate operations, has positive balance. How should these accounts be reported in 5 . Entity A's October 31, 20x1 classified balance sheet? A compensating balance that is legally restricted as to withdrawal is a. The segregated account should be reported as a noncurrent a. excluded from cash. asset, the regular account should be reported as a current b. included in cash. c. disclosed in the notes. d. a and c asset, and the overdraft should be reported as a current liability. 6 . The effect of compensating balance is b. The segregated and regular accounts should be reported as a. to provide greater security for the borrower. current assets, and the overdraft should be reported as a b. to decrease the yield on the loan to the lender. current liability. to increase the yield on the loan to the borrower. C. The segregated account should be reported as a noncurrent d. to increase the yield on the loan to the lender. asset, and the regular account should be reported as a (AICPA) current asset net of the overdraft. 7. For effective internal control over the disbursement of payroll d. The segregated and regular accounts should be reported as checks, an enterprise makes a specific amount of cash current assets net of the overdraft. available in a checking account for this limited purpose. The (AICPA) type of account used for this purpose is called a(n) 3. A debt security can qualify as a cash equivalent if a. General checking account. c. Lockbox account. b. Imprest bank account. a. it has a remaining maturity of 3 months or less as at the (AICPA) d. Compensating balance. reporting date. b. it is acquired 3 months or less before its maturity date. 8. It is a business document or written authorization that c. it has an original maturity of 3 months or less. supports every disbursement made by an entity. d. All of these a. Check c. Voucher b. Currency d. Cash equivalent 4. Which of the following may be properly presented under "Cash and Cash Equivalents" in the December 31, 20x1 9. Which of the following is not an appropriate procedure for statement of financial position? controlling the petty cash fund? a . Treasury bills acquired on December 1, 20x1 and maturing a. The petty cash custodian files receipts by category of on March 31, 20x2. expenditure after their presentation to the general cashier Customer's check dated January 1, 20x2 and mailed to the so that variations in different types of expenditures can be monitored. bank for deposit on December 31, 20x1. SHOT ON POCO M3 2021.1.26 08:24Chapter 2 78 Cash and Cash Equivalents 79 b. Surprise counts of the fund are made from time to time by a superior of the petty cash custodian to determine that the Additional information: fund is being accounted for satisfactorily. On Dec. 29, 20x1, Afternoon Co. issued a check amounting to c. The petty cash custodian obtains signed receipts from each P192,000. The check is dated Jan. 3, 20x2. individual to whom petty cash is paid. The peso savings deposit includes a compensating balance of d. Upon receiving petty cash receipts as evidence of P80,000 which is not legally restricted. disbursements, the general cashier issues a company check The exchange rate on Dec. 31, 20x1 is P51:$1. to the petty cash custodian, rather than cash, to replenish the fund. Requirement: Compute for the amount of cash and cash (AICPA - adapted) equivalents to be reported in the 20x1 financial statements. 10. Which of the following statements is incorrect? 2. Transactions relating to the petty cash fund (PCF) of Bier Co. a. For best internal control, all cash collections must be are as follows: deposited intact, while all cash disbursements must be Oct. 1, A petty cash fund with an imprest balance of P40,000 was 20x1 made directly out of the bank account, except for petty established. cash disbursements. Oct. 1 - 31, Disbursements were made for the following: 20x1 b. All disbursements must be properly supported by a Office supplies expense, P6,880 disbursement voucher. Transportation expense, P12,346 Freight-out, P17,627 c. The voucher system is an internal control over cash Cellphone load (Telecommunications expense), P2,502 disbursements but not for cash receipts. Oct. 31, d. ,A journal entry is made each time a disbursement is made Currencies and coins in the petty cash box amount to 20x1 P2,390. Replenishment is made. out of the petty cash fund. Requirement: Provide the journal entries. (Use a suspense account for any discrepancy in the fund.) PROBLEM 3: EXERCISES 1. Afternoon Co.'s records on Dec. 31, 20x1 show the following: 3. Assume that the PCF is not replenished. What amount of PCF Cash on hand P 320,000 will be reported in the Oct. 31, 20x1 financial statements? Cash in Bank - current account 1,120,000 Cash in Bank - peso savings deposit 6,400,000 4. On Dec. 31, 20x1, the petty cash fund of Bark Co., with a Cash in Bank - dollar savings deposit (restricted) $64,000 P30,000 leger balance, consists of the following: Treasury bill (purchased 11/1/20x1, maturing 2/28/20x2) P2,560,000 Currencies and coins 1,020 Treasury shares (purchased 12/31/20x1, for reissuance on 2/28/20x2) 1,600,000 Vouchers for various PCF disbursements 26,820 Unused Credit Line 6,400,000 An envelope containing employees' contributions Sinking fund 640,000 for a weekend outing amounting to 9,600 Check drawn by Bark Co. to the order of the petty cash custodian 1,200 OOO Personal check drawn by the petty cash custodian 960 SHOT ON POCO M3 2021.1.26 08:25Chapter 2 82 Cash and Cash Equivalents 83 Fact pattern: Tomay Co. established a petty cash fund of P40,000. Fund Exhibit 1: disbursements during the period were P8,025 for office supplies P11,533 for miscellaneous selling expenses, and P7,805 ABC Co. CASH COUNT SHEET miscellaneous administrative expenses. The petty cash count at FUND: UNDEPOSITED COLLECTIONS the end of the period revealed total bills and coins of P12,834. DATE: DEC. 30, 20x1 CURRENCY QTY. AMT. TOTAL 4. The entry to replenish the fund includes P1,000.00 1 1,000.00 500.00 3 1,500.00 a. a debit to petty cash fund for P26,969. 200.00 5 1,000.00 b. a credit to petty cash fund for P27,363. 100.00 10 1,000.00 c. a debit to Cash shortage or overage for P197. 50.00 20.00 25 500 00 25,100.DO d. a credit to Cash shortage or overage for P197. COINS 10.00 To replenish the fund at the end of the period, Tomay Co. 32 320 00 5.00 112 560 00 should write a check in the amount of 0.25 2.00 38200 a. 27,166. b. 26,969. C. 27,363. d. 27,560. TOTAL 25,882.00 The cash items amounting to FIVE THOUSAND, EIGHT HUNDRED EIGHTY-TWOPESOS (15.882.00) were returned to me intact after PROBLEM 5: CLASSROOM ACTIVITIES they were counted by the reviewer indicated below. ACTIVITY #1: CASH BALANCE Kay Hera Dec. 30, 20*1 Treasurer You are the accountant of ABC Co. You have gathered the Date following information for the purpose of determining the amount Jorge Bantay Dec. 30, 20*1 of cash to be reported in the December 31, 20x1 statement of Internal auditor Date financial position of ABC Co.: Exhibit 2.1: Account No. Account Name Check No. 8120-0194.49 JUAN BATUMBAKAL IIIIIIIIIIIIIIIIS 0339969 120040076 Date 2 - Jan - 20x2 Pay to the Order of **ABC Co."* P45,678.60 .OO Pesos Forty-five Thousand, Six Hundred Seventy-eight 60/100 Only SHOT ON POCO M3 BANK OF THE 2021.1.26 08:25 PHILIPPINE ISLANDSChapter Cash and Cash Equivalents .OO 20x1 and redeemable on Mar. 31, 20x2 Three-month time deposit with UCPB 950,000 The Oink Bank checking account includes P100,000 Investment in shares of stocks acquired on Dec. 31, 450,000 compensating balance that is legally restricted 20x1 to be sold in Jan. 20x2 The Porky Bank savings account #5100342120 represents a SHOT ON POCO M3 cash bond that is mandated by a law court to be held pending Requirement: How much is presented as cash equivalents? the final settlement of an on-going litigation. FS presentation, Measurement & Deposit in foreign bank Requirement: What amount of cash in bank is presented in the 3. Smile Co. has the following items on Dec. 31, 20x1: financial statements? P1,800,00 Cash on hand (peso) Cash on hand (USD, translated at P50:$1) 2,900,001 Accounting for PCF 200,000 5. An entity established a petty cash fund (PCF) of P30,000 on Revolving fund October 1, 20x1. During the month, P24,260 have been Contingency fund 80,00 Cash in bank - BPI 6,000,000 disbursed from the PCF, and by the end of the month, the PCF Cash in bank - Swiss Savings Account (translated at P51:CHF1) 1,400,090 box contains coins and currencies amounting to P5,625. Treasury Bill acquired Sept. 28, 20x1, maturing Jan. 28, 20x2 600,090 Requirement: Provide the journal entries including the Additional information: replenishment of the fund at month-end. Use a suspense account The current exchange rates on Dec. 31, 20x1 are as follows to record any discrepancy. P52:51 and P49:CHF1) . The Swiss Savings Account is restricted as to withdrawal. 6. Use the information in #5 above but assume the PCF is not replenished and financial statements are prepared at month Requirement: How much is presented as cash and cash equivalents end. Assume further that all discrepancies in the PCF are in Smile Co.'s Dec. 31, 20x1 statement of financial position? chargeable to the petty cash custodian. Compensating balance and Bank Overdraft Requirement: Provide the adjusting entry and determine the 4. Cloudy Co.'s cash in bank consists of the following: amount of PCF that will be reported in the financial statements. Piggy Bank savings account 480,000 Piggy Bank checking account (20,000 Oink Bank checking account 360,00 Porky Bank savings account #5100342120 200,0 Porky Bank checking account #6234210342 (70,00 Unused credit line - Bombay Bank 250,0 2021.1.26 08:27 Additional information: . The Piggy Bank savings account includes P40,00 compensating balance that is not legally restricted