Reference no: EM133009789

Sherwin Company reported the checkbook balance on December 31, 2015 at P8,000,000. In addition, the entity held the following items in the safe on that date: Check payable to Sherwin, dated January 2, 2016 in payment of a sale, not included in December 31 check book balance - 1,000,000; Check payable to Sherwin, deposited December 15 and included in December 31 checkbook balance, but returned by bank on December 30 stamped "NSF".

The check was redeposited on January 2, 2016 and cleared on January 5, 2016 - 3,000,000;

Check drawn on Sherwin's account, dated and recorded on December 31, 2015 but not mailed. until January 15, 2016 - 2,500,000;

Coins and currencies on hand - 800,000;

Three-month money market instruments - 1,500,000.

Problem 1: What is the correct amount of "cash" on December 31,2015?

a. 9,800,000
b. 9,300,000
c. 7,500,000
d. 8,300,000