Question

Annibelle Company provided the following account balances on December 31, 2020: Cash in bank 2,250,000 Cash...

Annibelle Company provided the following account balances on December 31, 2020:
Cash in bank 2,250,000
Cash on hand 125,000
Cash restricted for addition to plant expected to be
disbursed I 2021 1,600,000
Cash in money market account 750,000
Treasury bill purchased November 1, 2020 maturing
January 31, 2021 3,500,000
Treasury bill purchased December 1, 2020 maturing
March 31, 2021 2,000,000

Cash in bank included P600,000 of compensating balance against short-erm borrowing arrangement. The compensating balance is not legally restricted as to withdrawal. What total amount should be reported as cash and cash equivalents on December 31, 2020?

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Answer #1
Amount
Cash in bank (excluding compensating arrangement ) [2,250,000- 600,000] 1,650,000
Cash on Hand 125,000
Cash restricted for addition to plant expected to be
disbursed		 0
Cash in money market account 750,000
Treasury bill purchased November 1, 2020 maturing
January 31, 2021   [Maturing within 3 months ]		 3,500,000
Treasury bill purchased December 1, 2020 maturing
March 31, 2021 (maturity of more than 3 months]		 0
Cash adn cash equivalent December 31 2020 6,025,000

Cash Includes ,Cash in hand ,cash at bank,petty cash ,currecy and coins

Cash equivalent is a short term investment with a maturity date of 3 months or less at the time of purchase

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