Reference no: EM132835289
Problem 1: What amount of "cash and cash equivalents" should be reported at year-end?
AVL Company had the following items on December 31, 2020:
Cash in bank (Checking account) P2,000,000
Cash in bank (Savings account) 2,500,000
Petty cash fund (P20,000 in currency and expense receipts for P10,000 30,000
Tax fund 100,000
Investment in ordinary shares 500,000
Cash in sinking fund (liability is due next year) 1,000,000
Time deposit (6months) 1,100,000
Commercial paper with maturity of 2months 300,000
Savings deposit set aside for dividend payable on December 31, 2021 200,000