BACHELOR OF BUSINESS ADMINISTRATION

Queen COMPANY had the following account balances on December 31, Year 1:Petty cash fund 50, 000 Cash on hand 500, 000 Cash in bank-current account 4, 000, 000 Cash in bank-payroll account 1, 000, 000 Time deposit 2, 000, 000 Cash in bank-restricted account for plant addition, expected to be disbursed in Year 2 500, 000 Cash in sinking fund set aside for bond payable due June 30, Year 2 1, 500, 000 The petty cash fund included unreplenished December 31, Year 1 petty cash expense vouchers of P5, 000 and employee IOU of P5, 000. The cash on hand included a P100, 000 check payable to the entity dated January 31, Year 2. In exchange for a guaranteed line of credit, the entity has agreed to maintain a minimum balance of P200, 000 in the unrestricted current bank account.What amount should be reported as cash and cash equivalents on December 31, Year 1?