On Dec. 31, 2020, Aicka Company had the following cash balances: Cash in bank-current account 6,000,000 Petty
Question:
Cash in bank-current account 6,000,000
Petty cash fund-all funds were reimbursed at year-end 50,000
Time deposit-three months, due January 15, 2021 2,500,000
Saving deposit
Cash in bank included P400,000 of compensating balance against short term borrowing arrangement.
The compensating balance is legally restricted as to withdrawal.
What total amounts should be reported as cash and cash equivalents?
2- Calla Company had a checkbook balance on Dec. 31, 2020 of P8,000,000 and held the following items in the safe:
Check payable to Calla, dated Jan. 5, 2021,included in Dec. 31 checkbook balance 2,000,000
Check payable to Calla, deposited Dec. 20,and included in Dec. 31 checkbook balance,but returned by bank on Dec. 30, stamped"NSF". The check was redeposited Jan. 2, 2021and cleared Jan. 3, 2021. 500,000
Check drawn on Calla's account and payable to a vendor,dated and recorded Dec. 31 but not maileduntil Jan. 15, 2021 1,500,000
Cash on hand-undeposited collections 400,000
Change fund 40,000
Time deposit for plant expansion 1,000,000
Treasury bill 2,500,000
Money market placement 3,000,000
Postage stamps unused 10,000
What total amount should be reported as cash on Dec. 31, 2020?
Expert Answer:
1 Total amounts reported as cash and cash equivalents for Aicka Company on Dec 31 2020 Cash in bankcurrent account P6000000 Petty cash fund reimbursed ... View the full answer
