How much is the correct amount of cash and cash equivalents

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Problem - TWICE Company reported total cash and cash equivalents of P3,650,000 on December 31, 2020. The following items are included in its cash and cash equivalents. (1) Investment securities of P200,000, these investments are actively traded in the market. (2) TWICE Company has agreed to maintain a cash balance of P100,000 in one of its banks (this amount is not legally restricted as to withdrawal). (3) Investment securities of P500,000. These securities are commercial paper. The term of the papers is six months and they were purchased on November 1 at which time they had three months to go until they mature. How much is the correct amount of cash and cash equivalents that TWICE Company should report in its December 31, 2020 statement of financial position?

Reference no: EM132934976

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