caps locie at shift 0 cor Problem 1-13 (AICPA Adapted) Joana Company had the following account balances on December 31, 2020: Petty cash fund 50,000 Cash on hand 500,000 Cash in bank - current account 4,000,000 Cash in bank - payroll account 1,000,000 Time deposit 2,000,000 Cash in bank - restricted account for plant addition, expected to be disbursed in early 2021 500,000 Cash in sinking fund set aside for bond payable due June 30, 2021 1,500,000 The petty cash fund included unreplenished December 2020 petty cash expense, vouchers of P5,000 and employee IOU of P5,000. The cash on hand included a P100,000 check payable to the entity dated January 31, 2021. What total amount should be reported as cash and cash equivalents on December 31, 2020? a. 6,940,000 b. 8,940,000 c. 7,940,000 d. 7,440,000 27