Jerry Company had the following account balances on December 31, 2020:

Petty cash fund P25,000

Cash on hand P250,000

Cash in bank - current account P2,000,000

Cash in bank - payroll account P500,000

Cash in bank - restricted account for plant addition for disbursement in early 2021 P250,000

Cash in sinking fund set aside for bond payable, due June 30, 2021 P750,000

Time deposit P1,000,000

The petty cash fund included unreplenished December 2020 PCF vouchers of P2,500 and employee IOUS of P2,500. The Cash on hand included a P50,000 check payable to the entity dated January 31, 2021.

What total amount should be reported as Cash and cash equivalents on December 31, 2020?

• 3,720,000
• 3,470,000
• 4,470,000
• Answer not given
• 3,970,000