Reference no: EM132651973

Problem - The controller for Claude Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2019, balance sheet. The following information is provided.

1. Commercial savings account of P600,000 and a commercial checking account balance of P900,000 are held at First National Bank of Hunterson.

2. Money market fund account held at Volante Co. (a mutual fund organization) permits Eastwood to write checks on this balance, P5,000,000.

3. Travel advances of P180,000 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).

4. A separate cash fund in the amount of P1,500,000 is restricted for the retirement of long-term debt.

5. Petty cash fund of P1,000.

6. An I.O.U. from Marianne Koch, a company customer, in the amount of P190,000.

7. A bank overdraft of P110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank.

8. The company has two certificates of deposit, each totaling P500,000. These CDs have a maturity of 120 days.

9. Eastwood has received a check that is dated January 12, 2020, in the amount of P125,000.

10. Eastwood has agreed to maintain a cash balance of P500,000 at all times at First National Bank of Hunterson to ensure future credit availability.

11. Eastwood has purchased P2,100,000 of commercial paper of Sergio Leone Co. which is due in 60 days.

12. Currency and coin on hand amounted to P7,700.

Required - Compute the amount of cash to be reported on Eastwood Co.'s balance sheet at December 31, 2019.