Problem 3: Cash Valuation/ComputationMaldeta Corporation has supplied you with the following list of its bank accounts and cash at December 31, 2019.Checking account (Compensating balance of P15,000 with no restriction) 48,000Savings account, 2% 30,000Certificate of deposit, 6 months, 10%, due April 20, 2020 60,000Money market (30 day certificate, current rate 9.75%) 40,000Payroll account 20,000Certificate of deposit, 3 months, 10%, due February 15, 2020 75,000Petty cash 1,500Requirement:What should be the balance should be reported as Cash and Cash Equivalents in December 31, 2019 statement of financial position of MAldeta Company?

Cash and cash equivalents refer to highly liquid assets that can be readily converted into cash…

Answered: Problem 3: Cash Valuation/Computation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Problem 3: Cash Valuation/Computation

Maldeta Corporation has supplied you with the following list of its bank accounts and cash at December 31, 2019.

Checking account (Compensating balance of P15,000 with no restriction)		48,000
Savings account, 2%		30,000
Certificate of deposit, 6 months, 10%, due April 20, 2020		60,000
Money market (30 day certificate, current rate 9.75%)		40,000
Payroll account		20,000
Certificate of deposit, 3 months, 10%, due February 15, 2020		75,000
Petty cash		1,500

Requirement:

What should be the balance should be reported as Cash and Cash Equivalents in December 31, 2019 statement of financial position of MAldeta Company?

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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