the amount of cash and cash The chief accountant of Latte Company is determining equivalents to...

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the amount of cash and cash The chief accountant of Latte Company is determining equivalents to be reported on its December 31, 2013 statement of financial position. She found out that the "Cash and Cash Equivalents "balance in the general ledger was composed of the following items (8) Savings account of P900,000 and a commercial checking account with balance of P1,400,000 are held at Allied Bank Petty cash fund of P15,000 composed of expense receipts of P5,000 and bills and coins of P9,850 at December 31, (c) Cash fund in savings account with Metrobank P1,500,000 held for retirement of bonds payable, due December 31,2018 (d) Money market fund account held at BDO which permits, Latte Company to write checks on this balance, P2,000,000 Three certificates of deposit with Metrobank, each totaling P1,000,000 , two of which have maturity of 120 days from date of placement (November 30, 2013): one has a maturity of 90 days (placed on December 29,2013). She also obtained the following information: (8) A customer's check on hand dated January 10,2014 for P320,000. The check was recorded as collected in December and was included in the P900,000 savings accounts with Allied Bank A check for P300,000 was issued to a supplier on December 29,2013 and drawn from Allied Bank account The check was dated January 8,2014 and was traced to have been entered in the December check register (i) Latte maintains a P5,000,000 cash balance at all times at BPI to ensure future credit availability. (1) A check for P50,000 for adjustment in salaries of an employee for the month of November was still on hand at December 31,2013 The check was verified to have been recorded in the cash disbursements journal in December. REQUIRED: (a) Compute the amount of cash and cash equivalents to be reported on December 31,2013 statement of financial position. It is the policy of the company to treat as cash equivalents instruments with maturity date of 90 days. (b) Indicate the proper reporting for items that are not reported as cash and cash equivalents December 31,2013. at the amount of cash and cash The chief accountant of Latte Company is determining equivalents to be reported on its December 31, 2013 statement of financial position. She found out that the "Cash and Cash Equivalents "balance in the general ledger was composed of the following items (8) Savings account of P900,000 and a commercial checking account with balance of P1,400,000 are held at Allied Bank Petty cash fund of P15,000 composed of expense receipts of P5,000 and bills and coins of P9,850 at December 31, (c) Cash fund in savings account with Metrobank P1,500,000 held for retirement of bonds payable, due December 31,2018 (d) Money market fund account held at BDO which permits, Latte Company to write checks on this balance, P2,000,000 Three certificates of deposit with Metrobank, each totaling P1,000,000 , two of which have maturity of 120 days from date of placement (November 30, 2013): one has a maturity of 90 days (placed on December 29,2013). She also obtained the following information: (8) A customer's check on hand dated January 10,2014 for P320,000. The check was recorded as collected in December and was included in the P900,000 savings accounts with Allied Bank A check for P300,000 was issued to a supplier on December 29,2013 and drawn from Allied Bank account The check was dated January 8,2014 and was traced to have been entered in the December check register (i) Latte maintains a P5,000,000 cash balance at all times at BPI to ensure future credit availability. (1) A check for P50,000 for adjustment in salaries of an employee for the month of November was still on hand at December 31,2013 The check was verified to have been recorded in the cash disbursements journal in December. REQUIRED: (a) Compute the amount of cash and cash equivalents to be reported on December 31,2013 statement of financial position. It is the policy of the company to treat as cash equivalents instruments with maturity date of 90 days. (b) Indicate the proper reporting for items that are not reported as cash and cash equivalents December 31,2013. at

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PART1 Cash and cash equivalents Savings account with Allied Bank As Per books P900000 Custo... View the full answer