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River Company reported the following information in relation to cash on December 31, 2021: Checkbook balance, P3,000,000. Undeposited collections, P500,000. A customer check amounting to P100,000 dated January 2, 2022 was included in the December 31, 2021 checkbook balance. Another customer check for P300,000 deposited on December 22, 2021 was included in the checkbook balance but returned by the bank for insufficiency of fund. This check was redeposited on December 25, 2021 and cleared two days later. A P500,000 check payable to supplier dated and recorded on December 20, 2021 was mailed on January 15, 2022. A petty cash fund of P40,000 comprised the following on December 31, 2021: Coins and currencies Petty cash vouchers P 6,000 34,000 P 40,000 A check of P34,000 was drawn on December 31, 2021 payable to petty cash custodian. What is the adjusted cash in bank on December 31, 2021?_ What total amount should be reported as cash on December 31, 2021? Problem 2 Sabrina Company reported the following information at year-end: Share investments of P2,000,000 that are very actively traded in the stock market. Government treasury bills of P2,000,000 with a 10-year term but purchased on December 31 at which time they had two months to go until maturity. Cash of P2,300,000 in the form of coin, currency, savings account and checking account. Commercial papers of P1,500,000 with term of nine months but purchased on December 31 at which time they had three months to go until maturity. What total amount should be reported as cash? What total amount should be reported as cash equivalents? ● ●

River Company reported the following information in relation to cash on December 31, 2021: Checkbook balance, P3,000,000. Undeposited collections, P500,000. A customer check amounting to P100,000 dated January 2, 2022 was included in the December 31, 2021 checkbook balance. Another customer check for P300,000 deposited on December 22, 2021 was included in the checkbook balance but returned by the bank for insufficiency of fund. This check was redeposited on December 25, 2021 and cleared two days later. A P500,000 check payable to supplier dated and recorded on December 20, 2021 was mailed on January 15, 2022. A petty cash fund of P40,000 comprised the following on December 31, 2021: Coins and currencies Petty cash vouchers P 6,000 34,000 P 40,000 A check of P34,000 was drawn on December 31, 2021 payable to petty cash custodian. What is the adjusted cash in bank on December 31, 2021?_ What total amount should be reported as cash on December 31, 2021? Problem 2 Sabrina Company reported the following information at year-end: Share investments of P2,000,000 that are very actively traded in the stock market. Government treasury bills of P2,000,000 with a 10-year term but purchased on December 31 at which time they had two months to go until maturity. Cash of P2,300,000 in the form of coin, currency, savings account and checking account. Commercial papers of P1,500,000 with term of nine months but purchased on December 31 at which time they had three months to go until maturity. What total amount should be reported as cash? What total amount should be reported as cash equivalents? ● ●

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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Kindly answer problems 1-2.
Problem 1 River Company reported the following information in relation to cash on December 31, 2021: Checkbook balance, P3,000,000. Undeposited collections, P500,000. A customer check amounting to P100,000 dated January 2, 2022 was included in the December 31, 2021 checkbook balance. Another customer check for P300,000 deposited on December 22, 2021 was included in the checkbook balance but returned by the bank for insufficiency of fund. This check was redeposited on December 25, 2021 and cleared two days later. A P500,000 check payable to supplier dated and recorded on December 20, 2021 was mailed on January 15, 2022. A petty cash fund of P40,000 comprised the following on December 31, 2021: Coins and currencies Petty cash vouchers P 6,000 34,000 P 40,000 A check of P34,000 was drawn on December 31, 2021 payable to petty cash custodian. What is the adjusted cash in bank on December 31, 2021?_ What total amount should be reported as cash on December 31, 2021? Problem 2 Sabrina Company reported the following information at year-end: Share investments of P2,000,000 that are very actively traded in the stock market. Government treasury bills of P2,000,000 with a 10-year term but purchased on December 31 at which time they had two months to go until maturity. Cash of P2,300,000 in the form of coin, currency, savings account and checking account. Commercial papers of P1,500,000 with term of nine months but purchased on December 31 at which time they had three months to go until maturity. What total amount should be reported as cash? What total amount should be reported as cash equivalents? ● ●
Transcribed Image Text:Problem 1 River Company reported the following information in relation to cash on December 31, 2021: Checkbook balance, P3,000,000. Undeposited collections, P500,000. A customer check amounting to P100,000 dated January 2, 2022 was included in the December 31, 2021 checkbook balance. Another customer check for P300,000 deposited on December 22, 2021 was included in the checkbook balance but returned by the bank for insufficiency of fund. This check was redeposited on December 25, 2021 and cleared two days later. A P500,000 check payable to supplier dated and recorded on December 20, 2021 was mailed on January 15, 2022. A petty cash fund of P40,000 comprised the following on December 31, 2021: Coins and currencies Petty cash vouchers P 6,000 34,000 P 40,000 A check of P34,000 was drawn on December 31, 2021 payable to petty cash custodian. What is the adjusted cash in bank on December 31, 2021?_ What total amount should be reported as cash on December 31, 2021? Problem 2 Sabrina Company reported the following information at year-end: Share investments of P2,000,000 that are very actively traded in the stock market. Government treasury bills of P2,000,000 with a 10-year term but purchased on December 31 at which time they had two months to go until maturity. Cash of P2,300,000 in the form of coin, currency, savings account and checking account. Commercial papers of P1,500,000 with term of nine months but purchased on December 31 at which time they had three months to go until maturity. What total amount should be reported as cash? What total amount should be reported as cash equivalents? ● ●
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