India Company reported the following accounts on December 31, 2020: Cash on hand P 1,000,000Petty Cash Fund 50,000Security Bank current account 1,500,000PNB current account 2,000,000BDO current account (overdraft) ( 200,000)BSP treasury bill -120 days 3,000,000BPI time deposit - 90 days 1,000,000Bond Sinking Fund 2,500,000PNB savings account (held as compensating balance-restricted) 500,000 The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000.The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check for P5,000 dated January 31, 2021.The BPI time deposit is set aside for acquisition of land to be made in early January of 2021.The bond sinking fund is set aside for payment of bond payable due December 31, 2021The PNB saving account was restricted as compensating balance for two years due to a loan agreement entered by India Company to PNB. Requirements: Compute the total cash and cash equivalents as of December 31, 2020.Explain the presentation of the items excluded from cash and cash equivalents.

Step 1 Restricted items or items which are not available for immediate use are excluded ad cash and…

Answered: ndia Company reported the following…

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

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 9P

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India Company reported the following accounts on December 31, 2020:

Cash on hand P 1,000,000

Petty Cash Fund 50,000

Security Bank current account 1,500,000

PNB current account 2,000,000

BDO current account (overdraft) ( 200,000)

BSP treasury bill -120 days 3,000,000

BPI time deposit - 90 days 1,000,000

Bond Sinking Fund 2,500,000

PNB savings account

(held as compensating balance-restricted) 500,000

The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000.
The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check for P5,000 dated January 31, 2021.
The BPI time deposit is set aside for acquisition of land to be made in early January of 2021.
The bond sinking fund is set aside for payment of bond payable due December 31, 2021
The PNB saving account was restricted as compensating balance for two years due to a loan agreement entered by India Company to PNB.

Requirements:

Compute the total cash and cash equivalents as of December 31, 2020.
Explain the presentation of the items excluded from cash and cash equivalents.

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