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QUESTION 1 Pygmalion Company had the following account balances on December 31, 2020: Cash in bank - current account 5,000,000 Cash in bank - payroll account 1,000,000 Cash on hand 500,000 Cash in bank - restricted account for building construction expected to be disbursed in 2022 3,000,000 Time deposit unrestricted, due on March 15, 2021 2,000,000 What total amount should be reported as Cash and Cash equivalents on December 31, 2020? Everlast Company reported the following information at current year-end: Investment securities of P1,000,000. These securities are share investments in entities that are traded in the Philippine Stock Exchange. As a result, the shares are very actively traded in the market. Investment securities of P2,000,000. These securities are government treasury bills. The treasury bills have a 10-year term and purchased on December 31 at which time it had two months to go until it matures. Cash of P3,400,000 in the form of coin, currency, saving account and checking account. What total amount should be reported as Cash and Cash equivalents at the current year? Burr Company had the following account balances on December 31, 2020: Cash in bank 2,250,000 Cash on hand 125,000 1,600,000 Cash restricted for addition to plant (expected to be disbursed in 2021) Cash in bank included P600,000 of compensating balance against short-term borrowing arrangement. The compensating balance is not legally restricted as to withdrawal. In December 31, 2020 Statement of Financial Position, what total cash should be reported under current assets? 1,775,000 2,250,000 2,375,000 3,975,000 On December 31, 2020, Albania Company provided the following data: Cash in bank 3,000,000 Time deposit - 30 days 1,000,000 Money market placement due on June 30, 2021 2,000,000 Saving deposit in closed bank 100,000 Sinking fund for bond payable June 30, 2021 1,500,000 Petty cash fund 20,000 The cash in bank included customer check of P200,000 outstanding for 18 months. Check of P250,000 in payment of accounts payable was dated and recorded on December 31, 2020 but mailed to creditors on January 15, 2021. Check of P100,000 dated January 31, 2021 in payment of accounts payable was recorded and mailed December 31, 2020. The reporting period is the calendar year. The cash receipts journal was held open until January 15, 2021 during which time an amount of P450,000 was collected and recorded on December 31, 2020. Requirement: Compute the total amount of Cash and Cash equivalents that should be reported on December 31, 2020. Argentina Company reported the following accounts on December 31, 2020: Cash on hand 1,000,000 50,000 Petty cash fund Security Bank current account 2,000,000 PNB current account 1,500,000 (200,000) 3,000,000 BDO current account (overdraft) BSP treasury bill 120 days BPI time deposit - 90 days Bond sinking fund 2,000,000 2,500,000 The cash on hand included a customer posted check of P150,000 and postal money order of P50,000. The BPI time deposit is set aside for acquisition of land to be made in early January 2021. The bond sinking fund is set aside for payment of bond payable due December 31, 2021. Requirement: Compute the total amount of Cash and Cash equivalents that should be reported on December 31, 2020. Armenia Company reported the following information on December 31, 2020 Cash on hand 1,000,000 Petty cash fund 50,000 Cash in bank 4,000,000 Savings deposit 2,000,000 7,050,000 Cash on hand included the following: Customer check of P100,000 returned by bank last December 26, 2020 due to insufficient fund but subsequently redeposited and cleared by bank on January 5, 2021. Customer check for P150,000 dated January 15, 2021 received last December 22, 2020. Postal money orders received from customers, P200,000. A check was written last December 22, 2020 and delivered to payee on January 5, 2021, P200,000. A check was written last December 25, 2020 and dated January 31, 2021 delivered to payee on December 26, 2020, P300,000. Compute for the total cash. Tranvia Company revealed the following information on December 31, 2020: 350,000 Cash in checking account Cash in money market account (debt instruments) Treasury bill, purchased last November 1, 2020 maturing on January 31, 2021 Time deposit purchased last December 1, 2020 maturing on March 31, 2021 750,000 3,500,000 4,000,000 What amount should be reported as cash and cash equivalents on December 31, 2020? 1,100,000 3,850,000 4,600,000 8,600,000 Affable Company provided the following information at year-end comprising the cash account: Cash in bank - demand deposit Cash on hand 5,000,000 400,000 5,000 Postage stamps unused Certificate of time deposit 1,500,000 50,000 Money order Manager check 100,000 Traveler check 1,000,000 500,000 Postdated customer check What total amount should be reported as cash at year-end? 8,050,000 7,050,000 6,550,000 6,450,000