Reference no: EM132530858

Question - Company is determining the amount of Cash and Cash Equivalents to be reported in its December 31, 2019 statement of financial position. She found out that the "Cash and Cash Equivalents" balance in the general ledger was composed of the following items:

1. Savings account of P900,000 and a commercial checking account with balance of P1,400,000 are held at Allied Bank.

2. Petty Cash Fund of P15,000; composed of expense receipts of P5,000; and bills and coins of P9,850 at December 31.

3. Cash fund in savings account with Metrobank, P1,500,000 held for retirement of bonds payable, due December 31, 2022.

4. Money market fund account held at BDO which permits Latte Company to write checks on this balance, P2,000,000.

5. Three Certificates of Deposit with Metrobank, each totaling P1,000,000, two of which have maturity of 120 days from date of placement (November 30, 2019); one has a maturity of 90 days (placed on December 29, 2019).

6. Payroll fund maintained with BDO, P6,000,000. She also obtained the following information:

7. A customer's check on hand dated January 10, 2020 for P320,000. The check was recorded in December 2019 and was included in the P900,000 savings account with Allied Bank.

8. A check of P300,000 was issued to a supplier on December 29, 2019 and drawn from Allied Bank account.

The check was dated January 8, 2020 and was traced to have been entered in the December check register.

9. Latte maintains a P5,000,000 cash balance at all times at BPI to ensure future credit availability.

10. A check for P50,000 for adjustment in salaries of an employee for the month of November was still on hand at December 31, 2019. The check was verified to have been recorded in the cash disbursements journal in December 2019.

Required - Compute the amount of Cash and Cash Equivalents to be reported on the December 31, 2019 statement of financial position. It is the policy of the company to treat as cash equivalents instruments with maturity date of 90 days or less.