Louis Company had the following account balances at December 31, 2021: Cash in Metrobank 1,875,000 Cash in BPI 200,000 Cash on hand (includes a customer's check for P15,000 dated January 5, 2022 125,000 Cash restricted for acquisition of machinery (expected to be disbursed in 2022) 1,600,000 Cash in Metrobank include P300,000 of compensating balance against short-term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Louis. Question: In the current asset section of Louis' December 31, 2021 statement of financial position, total cash should be reported at a. P2,185,000 b. P1,885,000 c. P3,785,000 d. P3,485,000
Louis Company had the following account balances at December 31, 2021: Cash in Metrobank 1,875,000 Cash in BPI 200,000 Cash on hand (includes a customer's check for P15,000 dated January 5, 2022 125,000 Cash restricted for acquisition of machinery (expected to be disbursed in 2022) 1,600,000 Cash in Metrobank include P300,000 of compensating balance against short-term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Louis. Question: In the current asset section of Louis' December 31, 2021 statement of financial position, total cash should be reported at a. P2,185,000 b. P1,885,000 c. P3,785,000 d. P3,485,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...
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Question
Louis Company had the following account balances at December 31, 2021:
Cash in Metrobank 1,875,000
Cash in BPI 200,000
Cash on hand (includes a customer's check for P15,000 dated January 5, 2022 125,000
Cash restricted for acquisition of machinery (expected to be disbursed in 2022) 1,600,000
Cash in Metrobank include P300,000 of compensating balance against short-term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Louis.
Question:
In the current asset section of Louis' December 31, 2021 statement of financial position, total cash should be reported at
a. P2,185,000
b. P1,885,000
c. P3,785,000
d. P3,485,000
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