Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Please answer ty
Transcribed Image Text:For the next two (2) questions:
ABC Company had the following items being considered as cash and cash equivalents on December 31, 2021:
Cash on hand
P500,000
Petty cash fund (replenished on December 31, 2021)
X Bank current account
20,000
1,000,000
Y Bank current account No. 1
400,000
(50,000)
3,000,000
Y Bank current account No. 2
BSP treasury bill - 60 days
Z Bank time deposit - 30 days
2,000,000
Additional information:
• The cash on hand included a customer postdated check of P100,000 and postal money order of P40,000.
A check for P200,000 was drawn and recorded against X Bank account dated December 15, 2021, but mailed to the
payee on January 5, 2022.
• The BSP treasury bill was purchased on December 1, 2021.
• The Z time deposit was purchased on December 15, 2021 and is set aside for acquisition of land in 2022.
331 Whattatalamount-ef cach should-be reportertrbecember 1, 20202
34) What total amount of cash equivalents should be reported on December 31, 2020?
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