Problem 12-1
Tranvia company had the following balances on December 31, 2023:
Cash in checking account 350,000
Cash in money market account 750,000
Treasury bill, purchased November 1, 2023 3,500,000
maturing January 31, 2024
Time deposit purchased December 1, 2023 4,000,000
maturing March 31, 2024
What amount should be reported as cash and cash equivalents on December 31, 2023?
a. 1,100,000
b. 3,850,000
c. 4,600,000
d. 8,600,000
Problem 12-2
Pygmalion Company had the following balances on December 31, 2023:
Cash in bank - current account 5,000,000
Cash in bank - payroll account 1,000,000
Cash on hand 500,000
Cash in bank - restricted account for building 3,000,000
construction to be disbursed in 2024
Time deposit, purchased December 15, 2023 and 2,000,000
due March 15, 2024
The cash on hand included a 200,000 check payable to Pygmalion Company dated
January 15, 2024. What total amount should be reported as cash and cash equivalents
on December 31, 2023?
a. 6,300,000
b. 8,300,000
c. 6,500,000
d. 8,700,000
Problem 12-3
Thor company provided the following data on December 31, 2023:
Checkbook balance 4,000,000
Bank statement balance 5,000,000
Check drawn on Thor Company’s account, payable 500,000
to supplier, dated and recorded on December
31, 2023, but not mailed until 01/15/24
Sinking fund cash 2,000,000
On December 31, 2023, what amount should be reported as cash under current assets?
a. 4,500,000
b. 5,500,000
c. 3,500,000
Problem 12-4
At year-end, Myra Company reported cash and cash equivalents which comprised the
following:
Cash on hand 500,000
Demand deposit 4,000,000
Certificate of deposit 2,000,000
Postdated customer check 300,000
Petty cash fund 50,000
Traveler’s check 200,000
Manager’s check 100,000
Money order 150,000
What total amount should be reported as cash at year-end?
a. 7,000,000
b. 4,800,000
c. 6,800,000
d. 5,000,000
Problem 12-5
Everlast company reported the following information at year-end:
● Share investments of 1,000,000 that are very actively traded in the stock
market
● Government treasury bills of 2,000,000 with a 10-year term but purchased on
December 31 at which time they had two mounts to go until maturity.
● Cash of 3,400,000 in the form of coin, currency, saving account and checking
account
● Commercial papers of 1,500,000 with a term of nine months but purchased on
December 31 at which time they had three months to go until maturity.
1. What total amount should be reported as cash?
a. 3,400,000
b. 4,900,000
c. 4,400,000
d. 5,400,000
2. What total amount should be reported as cash equivalents?
a. 2,000,000
b. 1,500,000
c. 3,500,000
d. 4,500,000
Problem 12-6
Burr company had the following account balances at year-end:
Cash in bank 2,250,000
Cash on hand 125,000
Cash restricted for addition to plan and 1,600,000
expected to be disbursed next year
Cash in the bank included 600,000 of the compensating balance against short-term
borrowing arrangement. The compensating balance is not legally restricted as to
withdrawal. What total amount of cash should be reported under current assets at
year-end?
a. 1.775,000
b. 2,250,000
c. 2,375,000
d. 3,975,000
Problem 12-7
On December 31, 2023, West company had the following cash balances:
Cash in bank - current account 1,800,000
Petty cash fund - all funds were reimbursed at 50,000
year-end
Time deposit due February 1, 2024 250,000
Time deposit in bank closed by BSP 1,000,000
Cash in bank included 600,000 of compensating balance against short-term borrowing
arrangement on December 31, 2023. The compensating balance is legally restricted as
to withdrawal. On December 31, 2023, what total amount should be reported as cash
and cash equivalents?
a. 2,500,000
b. 1,250,000
c. 2,100,000
d. 1,500,000
Problem 12-8
Ral company reported the checkbook balance on December 31,2023 at 5,000,000 and
held the following items on same date:
Check payable to Ral, dated 01/02/24 in 2,000,000
payment of a sale made in December 2023, not
included December 31 checkbook balance
Check payable to Ral, deposited 12/15 and 500,000
included in December 31 checkbook balance, but
returned by bank on December 30 stamped as
NSF. It was redeposited to a vendor on
01/02/24 and cleared on 01/09/23
Check drawn on Ral’s account, payable to a 300,000
vendor, dated and recorded in Ral’s books on
12/31/23 but not mailed until 01/10/24
Certificated of Time deposit 1,000,000
What amount should be reported as cash on December 31, 2023?
a. 4,800,000
b. 5,300,000
c. 6,500,000
d. 5,800,000
Problem 12-9
Starex company provided the following information on December 31, 2023:
Checking account at Metrobank 3,000,000
Employee’s postdated check 120,000
Foreign bank account unrestricted and in 2,500,000
equivalent pesos
IOU from company president 500,000
NSF customer check 100,000
Petty cash fund, expense receipts 40,000 50,000
Treasury bills 1,200,000
Treasury bonds 500,000
Value added tax account 1,500,000
What amount should be reported as cash and cash equivalents on December 31, 2023?
a. 8,750,000
b. 7,000,000
c. 8,210,000
d. 8,250,000
Problem 12-10
Campbell company had the following account balances on December 31, 2023:
Petty cash fund 50,000
Cash on hand 500,000
Cash in bank - current account 4,000,000
Cash in bank - payroll account 1,200,000
Sinking fund for bond payable due 06/30/24 2,000,000
Cash in bank - restricted for plant addition 1,500,000
Time deposit 1,000,000
The petty cash fund included unreplenished December 2023 petty cash expense
vouchers 5,000 and employee IOU 5,000. The cash on hand included a 100,000 customer
check payable to Campbell Company dated 01/15/24. In exchange for a guaranteed line
of credit, the entity has agreed to maintain a minimum balance of 200,000 in the
unrestricted current bank account. What total amount should be reported as cash and
cash equivalents on December 31, 2023?
a. 8,640,000
b. 7,440,000
c. 7,640,000
d. 5,640,000
Problem 12-11
Yasmin Company provided the following information on December 31, 2023:
Petty cash fund 50,000
Current account - First bank 4,000,000
Current account - Second bank (overdraft) (250,000)
Money market placement - Third bank 1,000,000
Time deposit - Fourth bank 2,000,000
● A check for 100,000 was drawn against first bank current account dated and
recorded December 29, 2023 but delivered to payee on January 15, 2024
● The fourth bank time deposit is set aside for land acquisition in early
January 2024
What total amount should be reported as cash and cash equivalents on December 31,
2023?
a. 5,050,000
b. 5,150,000
c. 4,900,000
d. 4,150,000
Problem 12-12
On December 31, 2023, Albania company reported the following information:
Petty cash fund 50,000
Cash in bank - demand deposit 3,000,000
Time deposit - 30 days 500,000
Money market placement due on 06/30/24 2,000,000
Saving deposit 500,000
Sinking fund for bond payable due on 06/30/25 1,500,000
● The cash in bank included customer check of 200,000 outstanding for 18
months
● Check of 250,000 in payment of accounts payable was dated and recorded on
December 31, 2023 but mailed to creditors on January 1, 2024
● Check of 100,000 dated January 31, 2024 in payment of accounts payable was
recorded and mailed December 31, 2023
● The cash receipts journal was held open until January 31, 2024, during which
time 450,000 was collected and recorded on December 31, 2023.
What total amount should be reported as cash and cash equivalents on December 31,
2023?
a. 4,250,000
b. 4,750,000
c. 4,450,000
d. 4,700,000
