Reference no: EM133021652
Problem - The accountant of XXX Company is in the process of preparing the company's financial statements for the year ended December 31, 2019. He is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the statement of financial position. The following items are being considered:
Balances in the company's accounts at the Metropolitan Bank:
Current account P81,000
Savings account 132,600
Un-deposited customer checks of P22,200 (including a customer check dated January 2, 2020 for P3,000).
NSF check of P5,000 from a customer (this has been replaced & included in the Metropolitan Bank - Current Account balance)
Currency and coins on hand of P3,480.
Savings account at the Philippines Bank with a balance of P2,400,000. (This account is being used to accumulate cash for future plant expansion in 2020).
Petty cash of P4,000 (currency of P1,200 and un-replenished vouchers for P2,800).
P120,000 in a current account at the Philippines Bank. (This represents a 20% compensating balance for P600,000 loan with the bank. XXX Company is legally restricted to withdraw the funds until the loan is due in 2022).
Treasury bills: Two-month maturity bills, P90,000; Seven-month bills,120,000
Time deposit, P300,000
Money market, P200,000 (acquired 4 months ago maturing, 1/2/20). What is the correct balance of cash as of December 31, 2019?
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