MC44 Gem Co. had the following cash balances at December 31, 2020: Petty cash fund — P1,500 Customer's certified check — P5,000 Customer's NSF check — P2,000 Customer's postdated check — P4,000 Unrestricted demand deposits — P486,000 Company checks written and deducted from the demand deposits but not scheduled to be mailed until January 2, 2021 — P12,000 Time deposits restricted for use (expected use in 2021) — P300,000 In exchange for a guaranteed line of credit, Gem has agreed to maintain a minimum balance of P100,000 in its unrestricted demand deposits account. How much should Gem report as "Cash" in its December 31, 2020 statement of financial position? (with solution) a. P399,500 b. P404,500 c. P480,500 d. P504,500
MC44
Gem Co. had the following cash balances at December 31, 2020:
Petty cash fund — P1,500
Customer's certified check — P5,000
Customer's NSF check — P2,000
Customer's postdated check — P4,000
Unrestricted demand deposits — P486,000
Company checks written and deducted from the demand deposits but not scheduled to be mailed until January 2, 2021 — P12,000
Time deposits restricted for use (expected use in 2021) — P300,000
In exchange for a guaranteed line of credit, Gem has agreed to maintain a minimum balance of P100,000 in its unrestricted demand deposits account.
How much should Gem report as "Cash" in its December 31, 2020
a. P399,500
b. P404,500
c. P480,500
d. P504,500
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