Reference no: EM133009803

Campbell Company had the following account balances on December 31, 2014:

Petty cash fund - 50,000;

Cash in bank - current account - 4,000,000;

Cash in bank - sinking fund - 2,000,000;

Cash on hand - 500,000;

Cash in bank - restricted account for plant addition, expected to be disbursed in 2015 - 1,500,000;

Treasury bills - 1,000,000.

The petty cash fund included unreplenished December 2014 petty cash expense vouchers of P10,000 and employee IOU of P5,000. The cash on hand included a P100,000 check payable to Campbell dated January 15,2015. In exchange for a guaranteed line of credit, the entity has agreed to maintain a minimum balance of P200,000 in its unrestricted current bank account. The sinking fund is set aside to settle a bond payable that is due on June 30,2015.

Problem 1: What total amount should be reported as "cash and cash equivalents" on December 31, 2014?

a. 5,535,000
b. 4,435,000
c. 7,435,000
d. 5,435,000