Reference no: EM133117189
Question - The controller for Meteor City Co. is attempting to determine the amount of cash to be reported on its December 31, 2022 balance sheet. The following information is provided:
1) Commercial savings account of 600,000 and commercial checking account balance of 900,000 are held at Philippine National Bank.
2) Travel advances of 180,000 for executive travel for the first quarter of next year (employee to reimburse through salary deduction).
3) A separate cash fund in the amount of 1,500,000 is restricted for the retirement of long-term debt.
4) Petty cash fund of 10,000.
5) An I.O.U. from Fire Comet, a company officer, in the amount of 190,000.
6) A bank overdraft of 110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposit at this bank.
7) The company has two certificates of deposit, each totaling 500,000. These certificates of deposit have a maturity of 120 days.
8) Meteor City has received a check that is dated January 12, 2023, in the amount of 125,000.
9) Meteor City has agreed to maintain a cash balance of 500,000 at all time at Philippine National Bank to ensure future credit availability.
10) Meteor City has purchased 2,100,000 of commercial paper of PLDT Co. which is due in 60 days.
11) Currency and coin on hand amounted to, 7,700.
Required -
1. Compute the amount of cash and cash equivalents to be reported on Meteor City Co.'s balance sheet at December 31, 2022.
2. Indicate the proper reporting for items that are not reported as cash and cash equivalents on the December 31, 2022 balance sheet.
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