What is the total amount that Gema Company should report as “cash and cash equivalents” in the current assets section of the statement of financial position on December 31, 2020?
What is the total amount that Gema Company should report as “cash and cash equivalents” in the current assets section of the statement of financial position on December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
What is the total amount that Gema Company should report as “cash and cash equivalents” in the current
assets section of the
![Gema Company has agreed to maintain a cash balance of Php450,000 which will not be available for
withdrawal to ensure future credit availability. The said amount was included in the balance above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44bc462b-9c1c-4e0f-8a31-0cd53f442170%2Fa8dba4ae-9acc-4fea-9e0f-3ff566fcb10d%2Fos71kgd_processed.png&w=3840&q=75)
Transcribed Image Text:Gema Company has agreed to maintain a cash balance of Php450,000 which will not be available for
withdrawal to ensure future credit availability. The said amount was included in the balance above.
![Gema Company reported total cash and cash equivalents of Php5,465,000 on December 31, 2020, which
includes the following:
Two 180-day certificates of deposit, totaling
Manager's Check amounting to
Cash accumulated in special fund that will be used for plant expansion
Commercial paper due in 100 days
Currency and coins in petty cash fund (including unreplenished vouchers of
P2,500)
Php650,000
225,000
1,200,000
1,000,000
16,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44bc462b-9c1c-4e0f-8a31-0cd53f442170%2Fa8dba4ae-9acc-4fea-9e0f-3ff566fcb10d%2Fv8yybib_processed.png&w=3840&q=75)
Transcribed Image Text:Gema Company reported total cash and cash equivalents of Php5,465,000 on December 31, 2020, which
includes the following:
Two 180-day certificates of deposit, totaling
Manager's Check amounting to
Cash accumulated in special fund that will be used for plant expansion
Commercial paper due in 100 days
Currency and coins in petty cash fund (including unreplenished vouchers of
P2,500)
Php650,000
225,000
1,200,000
1,000,000
16,000
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