Joana Company had the following account balances on December 31, 2020: Petty cash fund Cash on hand Cash in bank- current account Cash in bank -payroll account Time deposit Cash in bank- restricted account for plant addition, expected to be disbursed in early 2021 Cash in sinking fund set aside for bond payable due June 30, 2021 50,000 500,000 4,000,000 1,000,000 2,000,000 500,000 1,500,000 The petty cash fund included unreplenished December 2020 petty cash expense vouchers of P5,000 and employee IOU of P5,000. The cash on hand included a P100,000 check payable to the entity dated January 31, 2021. What total amount should be reported as cash and cash equivalents on December 31, 2020? a. 6,940,000 b. 8,940,000 c. 7,940,000 d. 7,440,000

Joana Company had the following account balances on December 31, 2020: Petty cash fund Cash on hand Cash in bank- current account Cash in bank -payroll account Time deposit Cash in bank- restricted account for plant addition, expected to be disbursed in early 2021 Cash in sinking fund set aside for bond payable due June 30, 2021 50,000 500,000 4,000,000 1,000,000 2,000,000 500,000 1,500,000 The petty cash fund included unreplenished December 2020 petty cash expense vouchers of P5,000 and employee IOU of P5,000. The cash on hand included a P100,000 check payable to the entity dated January 31, 2021. What total amount should be reported as cash and cash equivalents on December 31, 2020? a. 6,940,000 b. 8,940,000 c. 7,940,000 d. 7,440,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.4.3P

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