Scribd
Upload
257 views2 pages

Problem 7 - 16

The document contains three problems regarding the calculation of cash and cash equivalents for company financial statements. Problem 7-16 lists cash account balances for Rabid Company totaling $5,250,000 and asks which amounts should be reported as cash. Problem 7-17 lists bank account balances for Kibitzer Company on December 31, 2016 totaling $3,200,000 and asks which amounts should be reported as cash and cash equivalents. Problem 7-18 lists cash and investment account balances for Aruba Company on December 31, 2016 totaling $18,450,000 and asks which amounts should be reported as cash and cash equivalents.

Uploaded by

Jao Flores
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
257 views2 pages

Problem 7 - 16

The document contains three problems regarding the calculation of cash and cash equivalents for company financial statements. Problem 7-16 lists cash account balances for Rabid Company totaling $5,250,000 and asks which amounts should be reported as cash. Problem 7-17 lists bank account balances for Kibitzer Company on December 31, 2016 totaling $3,200,000 and asks which amounts should be reported as cash and cash equivalents. Problem 7-18 lists cash and investment account balances for Aruba Company on December 31, 2016 totaling $18,450,000 and asks which amounts should be reported as cash and cash equivalents.

Uploaded by

Jao Flores
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Problem 7 – 16:

At year – end, Rabid Company reported a cash balance of P 5,250,000 which included the
following:

Petty cash fund 50,000


Undeposited receipts, including a post-dated customer
check of P 200,000 1,300,000
Cash in bank 2,500,000
Cash in sinking fund 1,000,000
Vouchers paid out of collections, not yet recorded 250,000
IOUs signed by employees 150,000

Total 5,250,000

What total amount should be reported as “cash” in the statement of financial position at year-
end?

a) 3,650,000
b) 3,850,000
c) 4,650,000
d) 4,050,000

Problem 7 – 17:

On December 31, 2016, Kibitzer Company had the following balances in the bank accounts it
maintains at First Bank:

Checking account # 101 1,750,000


Checking account # 201 (100,000)
Time deposit account – 30 days 250,000
90-day Treasury bill, due February 28, 2017 500,000
180-day Treasury bill, due March 15, 2017 800,000

On December 31, 2016, what total amount should be reported as cash and cash equivalents?

a) 1,900,000
b) 2,000,000
c) 2,400,000
d) 3,200,000
Problem 7 – 18:

Aruba Company had a checkbook balance on December 31, 2016 of P 8,000,000 and held the
following items in the safe:

Check payable to Aruba, dated January 5, 2017, included in


December 31 checkbook balance 2,000,000
Check payable to Aruba, deposited December 20, and
included in December 31 checkbook balance, but
returned by bank on December 30, stamped “NSF”.
The check was redeposited January 2, 2017, and
cleared January 3, 2017. 500,000
Check drawn on Aruba’s account and payable to a vendor,
dated and recorded December 31 but not mailed
until January 15, 2017 1,500,000
Cash on hand – undeposited collections 400,000
Change fund 40,000
Time deposit for plant expansion 1,000,000
Treasury Bill 2,500,000
Money market placement 3,000,000
Postage stamps unused 10,000

1) What total amount should be reported as cash on December 31, 2016?


a) 7,400,000
b) 7,440,000
c) 8,440,000
d) 7,450,000

2) What total amount should be reported as cash equivalents on December 31, 2016?
a) 6,500,000
b) 3,000,000
c) 5,500,000
d) 2,500,000

You might also like