Petty cash fund50,000Cash on hand500,000Cash in bank – current account4,000,000Cash in bank – payroll account1,000,000Time deposit2,000,000Cash in bank – restricted account for plant addition, expected to be disbursed in early 2021500,000Cash in sinking fund set aside for bond payable due June 30, 20211,500,000The 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?

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Petty cash fund	50,000
Cash on hand	500,000
Cash in bank – current account	4,000,000
Cash in bank – payroll account	1,000,000
Time deposit	2,000,000
Cash in bank – restricted account for plant addition, expected to be disbursed in early 2021	500,000
Cash in sinking fund set aside for bond payable due June 30, 2021	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?

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