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PROBLEM NO. 1 - Items reported as cash and cash equivalents In connection with your audit of Caloocan Corporation for the year ended December 31, 2021, you gathered the following: Current account at Metrobank Current account at BPI Payroll account Foreign bank account - restricted (in equivalent pesos) Postage stamps Employee's post-dated chck IOU from controller's sister Credit memo from a vendor for a purchase return Traveler's check Not-sufficient-funds'check Money order Petty cash fund ( P4,000 in currency and expense receipts for P6,00Q Treasury bills, due 3/30/22 (purchased 12/29/21 ) Treasury bills, due 1/31/22 (purchased 2/1/21 ) P,000,000 (100,000) 500,000 1,000,000 1,000 4,000 10,000 20,000 50,000 15,000 30,000 10,000 200,000 300,000 QUESTION: Based on the above information and the result of your audit, compute for the cash and cash equivalents that will be reported on the December 31,2021 statement of financial position. a. P2,704,000 c. P2,790,000 b. P2,784,000 d. P3,084,000 PROBLEM NO. 2 - Items reported as cash and cash equivalents In the course of your audit of the Las Pias Corporation, its controller is attempting to determine the amount of cash to be reported on its December 31, 2021 statement of financial position. The following information is provided: 1. Commercial savings account of P1,200,000 and a commercial checking account balance of P1,800,000 are held at PS Bank. 2. Travel advances of P360,000 for executive travel for the first quarter of the next year (employee to reimburse through salary deduction). 3. A separate cash fund in the amount of P3,000,000 is restricted for the retirement of a long-term debt. 4. Petty cash fund of P10,000. 5. An I.O.U. from a company officer in the amount of P40,000. 6. A bank overdraft of P250,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank. 7. The company has two certificates of deposit, each totaling P1,000,000. These certificates of deposit have maturity of 120 days. 8. Las Pias has received a check dated January 2, 2022 in the amount of P150,000. 9. Las Pias has agreed to maintain a cash balance of P200,000 at all times at PS Bank to ensure future credit availability. 10. Bills and coins on hand amounted to P15,000. 11. Cryptocurrencies valued at P100,000. QUESTION: Based on the given information and the result of your audit, how much will be reported as cash and cash equivalents at December 31, 2021? a. P2,575,000 c. P3,025,000 b. P2,825,000 d. P5,025,000

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