Joana Company had the following account balances on December 31, 2020: Petty cash fund Cash on hand Cash in bank- current account Cash in bank -payroll account Time deposit Cash in bank- restricted account for plant addition, expected to be disbursed in early 2021 Cash in sinking fund set aside for bond payable due June 30, 2021 50,000 500,000 4,000,000 1,000,000 2,000,000 500,000 1,500,000 The petty cash fund included unreplenished December 2020 petty cash expense vouchers of P5,000 and employee IOU of P5,000. The cash on hand included a P100,000 check payable to the entity dated January 31, 2021. What total amount should be reported as cash and cash equivalents on December 31, 2020? a. 6,940,000 b. 8,940,000 c. 7,940,000 d. 7,440,000
Joana Company had the following account balances on December 31, 2020: Petty cash fund Cash on hand Cash in bank- current account Cash in bank -payroll account Time deposit Cash in bank- restricted account for plant addition, expected to be disbursed in early 2021 Cash in sinking fund set aside for bond payable due June 30, 2021 50,000 500,000 4,000,000 1,000,000 2,000,000 500,000 1,500,000 The petty cash fund included unreplenished December 2020 petty cash expense vouchers of P5,000 and employee IOU of P5,000. The cash on hand included a P100,000 check payable to the entity dated January 31, 2021. What total amount should be reported as cash and cash equivalents on December 31, 2020? a. 6,940,000 b. 8,940,000 c. 7,940,000 d. 7,440,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 1-13 (AICPA Adapted)
Joana Company had the following account balances on
December 31, 2020:
Petty cash fund
Cash on hand
Cash in bank- current account
Cash in bank -payroll account
Time deposit
Cash in bank - restricted account for plant addition,
expected to be disbursed in early 2021
Cash in sinking fund set aside for bond payable due
June 30, 2021
50,000
500,000
4,000,000
1,000,000
2,000,000
|
500,000
1,500,000
The petty cash fund included unreplenished December 2020
petty cash expense vouchers of P5,000 and employee IOU of
P5,000.
The cash on hand included a P100,000 check payable to the
entity dated January 31, 2021.
What total amount should be reported as cash and cash
equivalents on December 31, 2020?
a. 6,940,000
b. 8,940,000
c. 7,940,000
d. 7,440,000
27
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