INTACT1 PRE-ASSESSMENT ACTIVITY 1 FOR MWF CLASS

General Instructions: Work by group composed of 5 MEMBERS (Maximum). you may use
different sources/references/multimedia library. Make sure to submit your paper before the
session ends. Answer the following questions (you may use the questionnaire provided, if
any, or a clean sheet of paper):

Part I. Theories

1. Define and explain what are Cash and Cash Equivalents? (Max. Of 5 sentences)

2. What is the difference between Cash on Hand & Cash in Bank (Max. Of 3 sentences)

3. What is Petty Cash Fund? (Max. Of 3 sentences)

4. What is Bank Reconciliation? (Max. Of 5 sentences)

Part II. Problem Solving. Work diligently and honestly, this is part of your training for the
upcoming chapter.

PROBLEM 1

ABC Company had the following account 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

Construction expected to be disbursed in 2024 3,000,000

Time deposit, purchased December 15, 2023 and

Due March 15, 2024 2,000,000

The cash on hand includes a P200,000 check payable to Pygmalion, dated January 15, 2024.

What should be reported as “cash and cash equivalents” on December 31,2023?

PROBLEM 2

On December 31, 2023, the cash account of Roel Company showed the following details:

Undeposited collections 60,000

Cash in Bank – PCIB checking account 500,000

Cash in Bank – PNB (overdraft) (50,000)

Undeposited check received from customer, Dated December 1, 2023 15,000

Undeposited check from customer dated January 15, 2023 25,000

Cash in Bank – PCIB (fund for payroll) 150,000

Cash in Bank – PCIB (saving deposit) 100,000

Cash in Bank – PCIB (money market instrument, 90days) 2,000,000

Cash in foreign bank (restricted) 100,000

IOUs from officers 30,000

Sinking fund cash 450,000

Listed shares held as trading investment 120,000

On December 31, 2023, what total amount should be reported as “cash and cash
equivalents”?
INTACT1 PRE-ASSESSMENT ACTIVITY 1 FOR MWF CLASS

Problem 3

Everlast Company reported the following information as of the end of the current year.

 Investment securities of P1,000,000. These securities are share investments in entities that
are traded in the Philippine Stock Exchange. As a result, the shares are very actively traded in
the market.

 Investment securities of P2,000,000. These securities are government treasury bills. The
treasury bills have 10-year term and purchased on December 31 at which time they had two
months to go until they mature.

 Cash of P3, 400,000 in the form of coin, currency, saving account and checking account.

 Investment securities of P1,500,000. These securities are commercial papers. The term of
the papers is nine months and they were purchased on December 31 at which time they had
three months to go until they mature.

What amount should be reported as cash and cash equivalents at the end of the current
year?

Problem 4

Campbell Company had the following account balances on December 31, 2012.

Petty cash fund 50,000

Cash in bank – current account 4,000,000

Cash in bank – sinking fund 2,000,000

Cash on Hand 500,000

Cash in Bank- restricted account for plant addition,

Expected to be disbursed in 2013 1,500,000

Treasury bills 1,000,000

The pretty cash fund includes unreplenished December 2012 petty cash expense vouchers of
P10,000 and employee IOU of P5, 000. The cash on hand includes a P100,000 check payable
to Campbell dated January 15, 2013. In exchange for a guaranteed line of credit, Campbell
has agreed to maintain a minimum balance of P200,000 in its unrestricted current bank
account. The sinking fund is set aside to settle a bond payable that is due on June 30, 2013.

What total amount should be reported as “cash and cash equivalents” on December 31,
2012?
INTACT1 PRE-ASSESSMENT ACTIVITY 1 FOR MWF CLASS

PROBLEM 5

The cash account in ABC Company’s ledger showed a balance at December 31, 2012 of
P4,415,000 which consisted of the following:

Petty cash fund 24,000

Undeposited receipts, including a postdated customer

Check for P70,000 , 1,220,000

Cash in Allied Bank, per bank statement, with

A check for 40,000 still outstanding 2,245,000

Bond sinking fund 850,000

Vouchers paid out of collections, not yet recorded 43,000

IOUs signed by employees, taken from collections 33,000

TOTAL 4,415,000

What is the balance of cash to be reported on December 31, 2012?

PROBLEM 6

The cash account in the current assets of the statement of financial position of Tawiran
Company consisted of the following:

Bond sinking fund cash 1,500,000

Checking account in FEBTC (A P320,000 check is

still outstanding per bank statement) 3,155,000

Currency and coins awaiting deposit 1,135,000

Deposit in a bank closed by BSP 500,000

Petty cash fund (of which P10,000 in is the form

Of paid vouchers) 50,000

Receivables from officers and employees 175,000

TOTAL 6,515,000

The correct cash balance should be