How much is the total cash and cash equivalents of the company as of December 31, 2019? In your audit of the cash and cash equivalents account of PQR Corporation, you noted a balance ofP6,869,000 on December 31, 2019. The following breakdown was providedP 200,0001,986,000Cash on HandBPI Savings AccountBPI Current Account(86,000)1,190,000BDO Current Account #001BDO Current Account #001(16,000)MB Current Account(50,000)500,000PNB Time Deposit- 60 daysForeign Bank Account- DDBForeign Bank Account- UABBDI Savings AccountBond Sinking Fund.Petty Cash Fund200,000230,00010,000500,00020,000350,000650,00030,000Dividend FundPayroll FundIOU from EmployeesTreasury Bill acquired last Aug 4, 2019Treasury Bill acquired last Nov 18, 2019150,000130,000Investment in Debt Securities acquired last Oct. 30, 2016Investment in Equity Securities70,000800,000Postage Stamps5,000 Additional Information regarding your audit are as follows:a. Cash on hand includes:A check dated Jan 5, 2020 issued to a supplier, P4,900A check dated Dec. 27, 2019 received from a customer, P12,000A check dated Jan. 2, 2019 received from a customer P15,000Customer check of P8,000 returned by bank on Dec. 20, 2019 marked NSFPostal money orders amounting to P19,000Undeposited Customer Checks P18,000b. The BPI Savings account includes a legally restricted compensating balance related to a 3-year 12% loan made by the entity on Oct. 31, 2018 amounting to P500,000.c. The negative balances from all the bank accounts were due to overdraftsd. The balance on the foreign bank account were based on the exchange rate on Dec 31, 2016.Only the foreign bank account in UAB is restricted in use.BDI has been declared bankrupt and the entity estimates that only 50% can be recovered fromBDI.The bond sinking fund was set up in Jan. 2, 2018 immediately upon the issuance of a 5 yearbond amounting to P500,000.g. The last replenishment of the petty cash fund was Dec. 28, 2019. Expenses incurred fromthat date until Dec. 31, 2019 were transportation expense amounting to P500 and suppliesexpenae amounting to P1,500.h. Both treasury bills have a maturity date of Jan. 31, 2020The investment in debt securitics comprise of debt instrument issued by Dual Co. maturingon Jan. 15, 2020 amounting P20,000, and bonds issued by Triathlon Co. maturing on March31, 2020 amounting to P50,000.j. The investment in Equity Securities comprise of the following:e.f.Ordinary shares of Baumol Company amounting to P200,000 which the entity intendsto hold for short term trading purposesOrdinary shares of Mille Inc. amounting to P150,000 which the entity intende to holdas available for sale securitiesRedeemable preference shares of Possible Ine amounting to P450,000 redleemable onJanuary 15, 2020 and acquired on Sept. 17, 2019.

Cash and cash equivalent is a term representing the form of assets which are in cash or can be…

In your audit of the cash and cash equivalents account of PQR Corporation, you noted a balance o P6,869,000 on December 31, 2019. The following breakdown was provided P 200,000 1,986,000 Cash on Hand BPI Savings Account BPI Current Account (86,000) 1,190,000 BDO Current Account #001 BDO Current Account #001 (16,000) MB Current Account (50,000) 500,000 PNB Time Deposit- 60 days Foreign Bank Account- DDB Foreign Bank Account- UAB BDI Savings Account Bond Sinking Fund Petty Cash Fund 200,000 230,000 10,000 500,000 20,000 Dividend Fund 350,000 Payroll Fund IOU from Employees Treasury Bill acquired last Aug 4, 2019 Treasury Bill acquired last Nov 18, 2019 650,000 30,000 150,000 130,000 Investment in Debt Securities acquired last Oct. 30, 2016 Investment in Equity Securities 70,000 800,000 Postage Stamps 5,000

In your audit of the cash and cash equivalents account of PQR Corporation, you noted a balance o P6,869,000 on December 31, 2019. The following breakdown was provided P 200,000 1,986,000 Cash on Hand BPI Savings Account BPI Current Account (86,000) 1,190,000 BDO Current Account #001 BDO Current Account #001 (16,000) MB Current Account (50,000) 500,000 PNB Time Deposit- 60 days Foreign Bank Account- DDB Foreign Bank Account- UAB BDI Savings Account Bond Sinking Fund Petty Cash Fund 200,000 230,000 10,000 500,000 20,000 Dividend Fund 350,000 Payroll Fund IOU from Employees Treasury Bill acquired last Aug 4, 2019 Treasury Bill acquired last Nov 18, 2019 650,000 30,000 150,000 130,000 Investment in Debt Securities acquired last Oct. 30, 2016 Investment in Equity Securities 70,000 800,000 Postage Stamps 5,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 16P

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