AUDIT OF CASH AND CASH EQUIVALENTS

Problem#3.

In connection with your audit of Infotech Company for the year ended
December 31, 2021, you gathered the following information:

Current account no. 1 at Philippine National Bank               5,000,000

Current account no. 2 at Philippine National Bank                 (500,000)
Foreign bank account - restricted (in USD)                    70,000
Petty cash fund (P10, 000 in currency and expense vouchers for P 20, 000)                    30,000
Payroll account               1,750,000
Money orders                  100,000
Postage stamps                      7,000
IOU from a key officer                    25,000
Credit memo from a vendor for a purchase return                    50,000
Employee's post-dated check                    11,000
Traveler's check                  130,000
Customer's not-sufficient-fonds check                    35,000
Treasury bills, due 2/28/22 (purchased 11/31/21)                  400,000
Treasury bills, due 2/28/22 (purchased 5/1/21)                  750,000
Change fund                    15,000
Bond sinking fund               1,200,000

**current exchange rate as of December 31, 2021  is at P49 for every USD1.

How much from the list above should be presented as part of Noncurrent
assets?

A. 1, 200, 000 *

B. 3, 640, 000
C. 4, 840, 000
D. None

Audit of Cash | jipb162021