In your audit of the cash and cash equivalents account of PQR Corporation, you noted a balance o P6,869,000 on December 31, 2019. The following breakdown was provided P 200,000 1,986,000 Cash on Hand BPI Savings Account BPI Current Account (86,000) 1,190,000 BDO Current Account #001 BDO Current Account #001 (16,000) MB Current Account (50,000) 500,000 PNB Time Deposit- 60 days Foreign Bank Account- DDB Foreign Bank Account- UAB BDI Savings Account Bond Sinking Fund Petty Cash Fund 200,000 230,000 10,000 500,000 20,000 Dividend Fund 350,000 Payroll Fund IOU from Employees Treasury Bill acquired last Aug 4, 2019 Treasury Bill acquired last Nov 18, 2019 650,000 30,000 150,000 130,000 Investment in Debt Securities acquired last Oct. 30, 2016 Investment in Equity Securities 70,000 800,000 Postage Stamps 5,000
In your audit of the cash and cash equivalents account of PQR Corporation, you noted a balance o P6,869,000 on December 31, 2019. The following breakdown was provided P 200,000 1,986,000 Cash on Hand BPI Savings Account BPI Current Account (86,000) 1,190,000 BDO Current Account #001 BDO Current Account #001 (16,000) MB Current Account (50,000) 500,000 PNB Time Deposit- 60 days Foreign Bank Account- DDB Foreign Bank Account- UAB BDI Savings Account Bond Sinking Fund Petty Cash Fund 200,000 230,000 10,000 500,000 20,000 Dividend Fund 350,000 Payroll Fund IOU from Employees Treasury Bill acquired last Aug 4, 2019 Treasury Bill acquired last Nov 18, 2019 650,000 30,000 150,000 130,000 Investment in Debt Securities acquired last Oct. 30, 2016 Investment in Equity Securities 70,000 800,000 Postage Stamps 5,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How much is the total cash and cash equivalents of the company as of December 31, 2019?
Transcribed Image Text:In your audit of the cash and cash equivalents account of PQR Corporation, you noted a balance of
P6,869,000 on December 31, 2019. The following breakdown was provided
P 200,000
1,986,000
Cash on Hand
BPI Savings Account
BPI Current Account
(86,000)
1,190,000
BDO Current Account #001
BDO Current Account #001
(16,000)
MB Current Account
(50,000)
500,000
PNB Time Deposit- 60 days
Foreign Bank Account- DDB
Foreign Bank Account- UAB
BDI Savings Account
Bond Sinking Fund.
Petty Cash Fund
200,000
230,000
10,000
500,000
20,000
350,000
650,000
30,000
Dividend Fund
Payroll Fund
IOU from Employees
Treasury Bill acquired last Aug 4, 2019
Treasury Bill acquired last Nov 18, 2019
150,000
130,000
Investment in Debt Securities acquired last Oct. 30, 2016
Investment in Equity Securities
70,000
800,000
Postage Stamps
5,000
Transcribed Image Text:Additional Information regarding your audit are as follows:
a. Cash on hand includes:
A check dated Jan 5, 2020 issued to a supplier, P4,900
A check dated Dec. 27, 2019 received from a customer, P12,000
A check dated Jan. 2, 2019 received from a customer P15,000
Customer check of P8,000 returned by bank on Dec. 20, 2019 marked NSF
Postal money orders amounting to P19,000
Undeposited Customer Checks P18,000
b. The BPI Savings account includes a legally restricted compensating balance related to a 3-
year 12% loan made by the entity on Oct. 31, 2018 amounting to P500,000.
c. The negative balances from all the bank accounts were due to overdrafts
d. The balance on the foreign bank account were based on the exchange rate on Dec 31, 2016.
Only the foreign bank account in UAB is restricted in use.
BDI has been declared bankrupt and the entity estimates that only 50% can be recovered from
BDI.
The bond sinking fund was set up in Jan. 2, 2018 immediately upon the issuance of a 5 year
bond amounting to P500,000.
g. The last replenishment of the petty cash fund was Dec. 28, 2019. Expenses incurred from
that date until Dec. 31, 2019 were transportation expense amounting to P500 and supplies
expenae amounting to P1,500.
h. Both treasury bills have a maturity date of Jan. 31, 2020
The investment in debt securitics comprise of debt instrument issued by Dual Co. maturing
on Jan. 15, 2020 amounting P20,000, and bonds issued by Triathlon Co. maturing on March
31, 2020 amounting to P50,000.
j. The investment in Equity Securities comprise of the following:
e.
f.
Ordinary shares of Baumol Company amounting to P200,000 which the entity intends
to hold for short term trading purposes
Ordinary shares of Mille Inc. amounting to P150,000 which the entity intende to hold
as available for sale securities
Redeemable preference shares of Possible Ine amounting to P450,000 redleemable on
January 15, 2020 and acquired on Sept. 17, 2019.
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