Cash and Cash Equivalent rev
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CASH AND CASH EQUIVALENTS 1. AT DECEMBER 31, 2014, ENCINA COMPANY HAD THE FOLLOWING BALANCES IN THE ACCOUNT AT LAND BANK: CHECKING ACCOUNT #1 CHECKING ACCOUNT #2 MONEY MARKET ACCOUNT 25,00 90-DAY CERTIFICATES OF DEPOSIT DUE 2/28/15 50,000 180-DAY CERTIFICATE OF DEPOSIT DUE 3/15/15 80,000 ENCINA CLASSIFIES WITH ORIGINAL TERMS OF 3 MONTHS OR LESS AS CASH EQUIVALENTS. I 31, 2014 BALANCE SHEET, WHAT AMOUNT SHOULD K REPORT AS CASH AND CASH EQUIVALENTS? ANSWER: 240,000 2. ACCOUNT OF THE PETTY CAS FUND OF TIMEX COMPANY SHOWED ITS COMPOSITION AS FOLLOW COINS AND CURRENCY 3,300 PAID VOUCHERS: 600 400 OFFICE 500 POSTAGE 300 DUE FROM 1,200 3,000 CHECK DRAWN BY THE ENTITY TO THE ORDER OF PETTY CASH CUSTODIAN 2,700 WHAT IS THE CORRECT AMOUNT OF PETTY CASH FUND FOR STATEMENT PRESENTATION PURPOSES? ANSWER: 6,000
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Transcript of Cash and Cash Equivalent rev
CASH AND CASH EQUIVALENTS
1. AT DECEMBER 31, 2014, ENCINA COMPANY HAD THE FOLLOWING BALANCES IN THE ACCOUNT IT MAINTAINS AT LAND BANK:
CHECKING ACCOUNT #1 175,000
CHECKING ACCOUNT #2 (10,000)
MONEY MARKET ACCOUNT 25,000
90-DAY CERTIFICATES OF DEPOSIT DUE 2/28/15 50,000
180-DAY CERTIFICATE OF DEPOSIT DUE 3/15/15 80,000
ENCINA CLASSIFIES WITH ORIGINAL TERMS OF 3 MONTHS OR LESS AS CASH EQUIVALENTS. IN ITS DECEMBER 31, 2014BALANCE SHEET, WHAT AMOUNT SHOULD K REPORT AS CASH AND CASH EQUIVALENTS?
ANSWER: 240,000
2. ACCOUNT OF THE PETTY CAS FUND OF TIMEX COMPANY SHOWED ITS COMPOSITION AS FOLLOWS:
COINS AND CURRENCY 3,300
PAID VOUCHERS: TRANSPORTATION 600 GASOLINE 400
OFFICE SUPPLIES 500 POSTAGE STAMPS 300 DUE FROM EMPLOYEES 1,200 3,000
CHECK DRAWN BY THE ENTITY TO THE ORDER OF PETTY CASH CUSTODIAN 2,700WHAT IS THE CORRECT AMOUNT OF PETTY CASH FUND FOR STATEMENT PRESENTATION PURPOSES?ANSWER: 6,000
3. RESIAK COMPANY HAD THE FOLLOWING ACCOUNT BALANCCE AT DECEMBER 31, 2012:CASH IN BANK 2,250,000CASH ON HAND 125,000CASH LEGALLY RESTRICTED FOR ADDITIONSOF PLANT1,600,000
CASH IN BANK INCLUDES 600,000 OF THE COMPENSATING BALANCES RELATED TO SHORT-TERM BORROWING ARRANGEMENTS. THE COMPENSATING BALANCES ARE NOT LEGALLY RESTRICTED AS TO WITHDRAWAL BY RESIAK.IN THE CURRENT ASSET SECTION OF RESIAKS DECEMBER 31, 2012 BALANCE SHEET, AT WHAT AMOUNT SHOULD TOTAL CASH REPORTED?
ANSWER: 2,375,0004. UPON INSPECTING THE COMPANYS RECORD ON DECEMBER 2013, YOU HAVE SEEN THAT THE CASH ACCOUNT HAS AN AMOUNT OF 90,000 WHICH IS ALREADY NET OF OVERDRAFT AMOUNTING TO 8,000. THE SAID OVERDRAFT IS FROM THE COMPANYS 2nd ACCOUNT IN BPI. INCLUDED IN THE 90,000 BALANCE IS CHECK RECEIVED FROM A CUSTOMER WHICH IS DATED FEBRUAARY 2014 IN THE AMOUNT OF 10,000. FURTHERMORE, THE COMPANY HAS NOT YET RECORDED A DISBURSEMENT AMOUNTING TO 11,000 IN PAYMENT OF ACCOUNT.COMPUTE FOR THE CORRECT AMOUNT OF CASH.
ANSWER: 69,000
5. USING THE INFORMATION BELOW, DETERMINE THE CORRECT AMOUNT OF CASH AND CASH EQUIVALENTS:CASH ON HAND 125,000CASH IN BANK (NET OF 10,000 OVERDRAFT FROM ANACCOUNT IN THE SAME BANK)95,000BOND SINKING FUND 20,0003-MONTH TIME DEPOSIT19,0003-MONTH TREASURY BILL15,000PETTY CASH FUND (INCLUDES 5,000 VOUCHERS)18,000
ANSWER: 247,000
