Qiqi Co. have the following account balances relating to cash and cash equivalents as of December 31, 2021:

CIB – BPI – Current 500,000

CIB – BDO – Checking 600,000

CIB – BDO – Current (150,000)

CIB – Land Bank – Current (30,000)

CIB – Foreign Account 130,000

Cash on hand 700,000

Money Market Accounts 200,000

2-month time deposit 50,000

Commercial Papers, acquired 11/31/2021, maturing 01/15/2022 60,000

Additional information was gathered as follows:

a. The balance in foreign account is legally restricted.

b. CIB – BPI – Current has a 20,000 compensating balance and is legally restricted.

c. A Php25,000 check was drawn from CIB – BDO – Checking for the payment of the company’s purchases. The check is still on the custodian’s drawer as of December 31, 2021.

d. A Php36,000 check dated 01/31/2022 payable to the company’s CIB – BPI – Current was received and recorded on 12/15/2021.

How much should be reported as cash and cash equivalents on Qiqi Co.’s December 31, 2021 statement of financial position?

Answer rating: 100% (QA)

CASH AND ... View the full answer