PROBLEM 1

Joe Company had the following account balances on December. 31, 2019: Petty cash fund 50,000 Cash in bank current account 4,000,000 Cash in bank payroll account 1,200,000 Cash in bank - sinking fund 2,000,000 Cash on hand 500,000 Cash in bank - restricted account for plant addition and expected to be disbursed in 2020 1,500,000 Treasury bills- 3 months 1,000,000 The petty cash fund included unreplenished December 2019 petty cash expense vouchers P5,000 and employee IOU P5,000. The cash on hand included a P100,000 customer check payable to Joe dated January 15, 2020. In exchange for a guaranteed line of credit, the entity has agreed to maintain a minimum balance of P200,000 in the unrestricted current bank account. The sinking fund is set aside to settle a bond payable that is due on December 31, 2020.

What total amount should be reported as cash on December 31, 2019? *

10 points

What total amount should be reported as cash and cash equivalents on December 31, 2019? *

10 points

What total amount should be reported as cash and cash equivalents on December 31, 2019? *

10 points

Your answer