Solution-What total amount should be reported as cash

What total amount should be reported as cash

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Reference no: EM133064017

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Q1. On December 31, 2019, Cherry Company had the following cash balances:

Cash in Bank - 3,000,000 Petty cash fund (unreplenished expenses, P5,000 on 12/31/19) - 20,000

Time deposit, due March 1, 2020, six months - 500,000

Cash in bank included P200,000 of compensating balance against short term borrowing arrangement on December 31, 2019. The compensating balance is legally restricted as to withdrawal of Cherry.

In the correct assets section of the December 31,2019 balance sheet what total amount should be reported as cash and cash equivalents?

A. P3,315,000

B. P3,320,000

C. P2,815,000

D. P2,820,000

Q2. The following information pertains to Papaya Company on December 31, 2020: Bank statement balance-P5,000,000; Checkbook balance- P5,600,000; Deposit in transit- P2,000,000; Outstanding checks, including P100,000 certified check- P500,000.

In Papaya's December 31, 2020 statement of financial position, cash should be reported at:

A. P6,500,000

B. P6,600,000

C. P7,100,000

D. P7,200,000

Reference no: EM133064017

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What total amount should be reported as cash

Reference no: EM133064017

Reference no: EM133064017

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