CASH AND CASH EQUIVALENTS QUIZZER #2

1. On December 1, 2011, Denmark Corp. established an imprest petty cash fund of P 9,000 by writing a check drawn against its general checking account. On December 30, the fund contained the following:

Currency and coinsP 3,500

Receipts for miscellaneous expenses1,200

Receipts for office supplies2,800

Envelope containing contributions of employees600

Receipts for transportation300

On December 31, the company wrote a check to replenish the fund. The amount of replenishment is

2. China Corp. established a petty cash fund of P 5,000 for incidental expenses on June 1, 2011. At the end of the month, the count of cash on hand indicated that P 675 remained in the fund. A sorting of the petty cash vouchers disclosed the following expenses had been incurred during the month:Office suppliesP 342TransportationP 1,320

Postage 1,780Miscellaneous 838

The above data indicate that there isa. Cash shortage of P 45c. Cash shortage of P 720

b. Cash overage of P 45d. Cash overage of P 720

3. Japan Co. had the following balances at December 31, 2011:Cash in checking accountP 350,000

Cash in money market account250,000

Treasury bill, purchased 12/1/2011 maturing 2/28/2012800,000

Treasury bill, purchased 3/1/2011 maturing 2/28/2012500,000

Japan Companys policy is to treat as cash equivalents highly-liquid investments with a maturity of three months or less when purchased.

The amount Japan Company should repost as cash and cash equivalents in its Dec. 31, 2011 balance sheet is

4. At December 31, 2011 Belgium Co. had the following balances in the accounts it maintains in Citibank:

Checking account #139886P 175,000

Checking account #139887(10,000)

Money market account25,000

90-day certificate of deposit, due February 28, 201250,000

180-day certificate of deposit, due March 15, 201280,000

The amount to be reported as Cash and Cash Equivalents on Belgiums Dec. 31, 2011 balance sheet is

5. Following were the account balances of Potter Co. at December 31, 2011:Cash on handP 187,500

Cash in current and savings accounts3,375,000

Cash set aside for plant expansion (expected for payment in 2012)2,400,000

Cash in current and savings accounts include P 900,000 as holdout against short-term loan arrangements. There are no legal restrictions as to withdrawal by Potter on these holdouts.

Cash reported in Potters December 31, 2011 balance sheet at:

6. The balance sheet of Alaska Co. as of December 31, 2011 shows Cash of P 17,500. It was found to include the following items:Postal money orders from customersP 2,400

Notes receivable in the possession of a collection agency3,200

Receipts for expense advances for the account of credit suppliers600

Customers postdated checks, returned by the bank marked NSF1,800

Travelers checks500

Currencies and coins on hand600

Check in payment of accounts, still in the cashiers safe, not yet delivered to payee6,000

Petty cash fund (P 160 in currency and P 840 in expense receipts)1,000

The correct cash balance is

7. Europe Corp. provided the following information:Reconciled balance in Export Bank checking accountP 196,075

Reconciled balance in Citibank checking account(4,000)

Balance in Equitable PCI bank savings account287,500

90-day Certificate of deposit30,000

Petty cash fund5,000

Postage stamps1,000

Employees IOU1,250

Employees travel advances16,400

Cash on hand (undeposited sales receipts)31,000

Travelers checks6,000

The amount to be reported as cash on Europes balance sheet is

8. Russ Corp. had the following items on December 31, 2011:NSF checksP 2,000Cash on handP 3,000

Savings account 75,000Cash in sinking fund50,000

Postage stamps 600Travel advances4,000

Postdated checks5,400Bank draft10,000

IOUs1,200Travelers checks8,000

The total amount included in Cash balance at December 31, 2011 is

9. Turkey Co.s checkbook balance on December 31, 2011, was P 5,000. In addition, Turkey held the following items in its safe on that date:Check payable to Turkey Co., dated January 2, 2012, in payment of a sale made in December 2011, not included in December 31 checkbook balanceP 2,000

Check payable to Turkey Co., deposited December 15 and included un December 31 checkbook balance, but returned by bank in December 30 stamped NSF. The check was redeposited on January 2, 2012, and cleared on January 9500

Check drawn on Turkey Co.s account, payable to a vendor, dated and recorded in Turkeys books on December 31 but not mailed until January 10, 2012300

The proper amount to be shown as Cash on Turkeys balance sheet at December 31, 2011 is

10. The cash account of Atlanta Corp. has a balance of P 96,000 on December 31, 2011. Your review of the cash transactions recorded in December revealed the following Cash receipts included customers checks for P 4,000 dated January 10, 2012. Check of P 10,000 payable to Bayou Co. The check dated 12/23 was delivered to Bayou on 12/24 had not been paid by the bank as of 12/31 Check of P 7,000 payable to York Co. The check was dated 12/29 but still undelivered as of 12/31 The correct cash balance at December 31, 2011 is

11. The unaudited balance sheet of Hawk Corp. at December 31, 2911 reported in the current asset section Cash of P 254,000. A review of the cash transactions disclosed the following: Cash includes P 80,000 set aside for the purchase of new equipment. Checks totaling P 6,000 payable to suppliers were mailed and recorded on December 30, 2011 but these checks cleared the bank in January 2012. Cash includes P 3,000 check received from a customer on December 29, 2011. The check is dated January 3, 2012.

The correct cash balance at December 31, 2011 is

12. Regency Corp. had the following transactions in its first year of operations: Sales (90% collected in first year)P 2,000,000

Bad debt written-off60,000

Disbursements for cost and expenses1,300,000

Disbursements for income taxes90,000

Purchases of fixed assets450,000

Depreciation of fixed assets90,000

Proceeds from issuance of ordinary share600,000

Proceeds from short-term borrowings100,000

Payments on short-term borrowings80,000

What is the cash balance at December 31 of the first year?