Henry Company had the following account balances on December 31, 2015. Petty cash fund P50,000 Cash in bank – current account 10,000,000 Cash in bank – payroll account 2,000,000 Cash on hand 500,000 Cash in bank – restricted account for plant additions, expected to be disbursed in 2016 4,000,000 Treasury bills, due February 15, 2016 3,000,000 The petty cash fund includes unreplenished December 2015 petty cash expense vouchers of P20,000 and employee IOUs of P10,000. The cash on hand includes a P100,000 check payable to Henry dated January 15, 2016. What should be reported as “cash and cash equivalents”
Henry Company had the following account balances on December 31, 2015. Petty cash fund P50,000 Cash in bank – current account 10,000,000 Cash in bank – payroll account 2,000,000 Cash on hand 500,000 Cash in bank – restricted account for plant additions, expected to be disbursed in 2016 4,000,000 Treasury bills, due February 15, 2016 3,000,000 The petty cash fund includes unreplenished December 2015 petty cash expense vouchers of P20,000 and employee IOUs of P10,000. The cash on hand includes a P100,000 check payable to Henry dated January 15, 2016. What should be reported as “cash and cash equivalents”
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Henry Company had the following account balances on December 31, 2015.
Petty cash fund P50,000
Cash in bank – current account 10,000,000
Cash in bank – payroll account 2,000,000
Cash on hand 500,000
Cash in bank – restricted account for plant additions, expected to
be disbursed in 2016 4,000,000
Treasury bills, due February 15, 2016 3,000,000
The petty cash fund includes unreplenished December 2015 petty cash expense vouchers of
P20,000 and employee IOUs of P10,000. The cash on hand includes a P100,000 check payable
to Henry dated January 15, 2016. What should be reported as “cash and cash equivalents”
on December 31, 2015?
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