Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Company reported total cash and cash equivalents of P6,831,250 on December 31, 2020, which includes the following: 120-day certificates of deposit 812,500 PDC
ABC Company reported total cash and cash equivalents of P6,831,250 on December 31, 2020, which includes the following: 120-day certificates of deposit 812,500 PDC (Post Dated Check dated January 2, 281,250 2021 Special cash fund for payment of long term 1,500,000 bond Commercial paper due in 100 days 1,250,000 Currency and coins in petty cash fund (including unreplenished vouchers of P3,125) 20,000 ABC Company has agreed to maintain a cash balance of P562,500 which will not be available for withdrawal to ensure future credit availability. The said amount was included in the balance above. What is the total amount that ABC Company should report as "cash and cash equivalents" in the current assets section of the statement of financial position on December 31, 2020?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started