In your audit of the cash and cash equivalents account of a Corporation, you noted a balance of P6,869,000 on December 31, 2019. The following breakdown was provided Cash on Hand BPI Savings Account P200,000 1,986,000 BPI Current Account BDO Current Account #001 (86,000) 1,190,000 BDO Current Account #001 (16,000) MB Current Account (50,000) PNB Time Deposit- 60 days 500,000 Foreign Bank Account- DDB 200,000 Foreign Bank Account- UAB 230,000 BDI Savings Account 10,000
In your audit of the cash and cash equivalents account of a Corporation, you noted a balance of P6,869,000 on December 31, 2019. The following breakdown was provided
|
Cash on Hand BPI Savings Account |
P200,000 1,986,000 |
|
BPI Current Account BDO Current Account #001 |
(86,000) 1,190,000 |
|
BDO Current Account #001 |
(16,000) |
|
MB Current Account |
(50,000) |
|
PNB Time Deposit- 60 days |
500,000 |
|
Foreign Bank Account- DDB |
200,000 |
|
Foreign Bank Account- UAB |
230,000 |
|
BDI Savings Account |
10,000 |
|
Bond Sinking Fund |
500,000 |
|
Petty Cash Fund |
20,000 |
|
Dividend Fund |
350,000 |
|
Payroll Fund |
650,000 |
|
IOU from Employees |
30,000 |
|
Treasury Bill acquired last Aug 4, 2019 |
150,000 |
|
Treasury Bill acquired last Nov 18, 2019 |
130,000 |
|
Investment in Debt Securities acquired last Oct. 30, 2016 |
70,000 |
|
Investment in Equity Securities |
800,000 |
|
Postage Stamps |
5,000 |
Additional Information regarding your audit are as follows:
- Cash on hand includes:
- A check dated Jan 5, 2020, issued to a supplier, P4,900
- A check dated Dec. 27, 2019, received from a customer, P 12,000
- A check dated Jan. 2, 2019, received from a customer P 15,000
- Customer check of P8,000 returned by bank on Dec. 20, 2019, marked NSF
- Postal money orders amounting to P 19,000
- Undeposited Customer Checks P 18,000
- 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.
- The negative balances from all the bank accounts were due to overdrafts
- 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 from
- The bond sinking fund was set up in Jan. 2, 2018, immediately upon the issuance of a 5-year bond amounting to P500,000.
- The last replenishment of the petty cash fund was Dec. 28, 2019. Expenses incurred from that date until Dec. 31, 2019, were transportation expense amounting to P500 and supplies expense amounting to P 1,500.
- Both treasury bills have a maturity date of Jan. 31, 2020
- The investment in debt securities comprise of debt instrument issued by Dual Co. maturing on Jan. 15, 2020, amounting P20,000, and bonds issued by Triathlon Co. maturing on March 31, 2020, amounting to P50,000.
- The investment in Equity Securities comprise of the following:
- Ordinary shares of Baumol Company amounting to P200,000 which the entity intends to hold for short term trading purposes
- Ordinary shares of Mille Inc. amounting to PI 50,000 which the entity intends to hold as available for sale securities
- Redeemable
preference shares of Possible Inc amounting to P450,000 redeemable on January 15, 2020 and acquired on Sept. 17, 2019.
Requirement:
How much is the total cash and cash equivalents of the company as of December 31, 2019?
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