Jungkook Company had the following account balances at December 31, 2020:   Cash in banks- P2,250,000   Cash on hand- P125,000   Cash legally restricted for additions to plant (expected to be disbursed in 2022)- P1,600,000 Cash in banks includes P600,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Jungkook. In the current assets section of Jungkook’s December 31, 2020 statement of financial position, total cash should be reported at

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jungkook Company had the following account balances at December 31, 2020:

  •   Cash in banks- P2,250,000
  •   Cash on hand- P125,000
  •   Cash legally restricted for additions to plant (expected to be disbursed in 2022)- P1,600,000

Cash in banks includes P600,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Jungkook. In the current assets section of Jungkook’s December 31, 2020 statement of financial position, total cash should be reported at

 

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