1. San Company reported the following items on December 31, 2022: Treasury bills – 7 months maturity P 150,000 Treasury bills – 2 months maturity 75,000 Bank A – demand deposit 67,500 Undeposited customer check 26,000 Currency and coins on hand 2,900 Savings deposit – for plant expansion 2,000,000 Bank B – demand deposit 100,000 The demand deposit in Bank B represents a 20% compensating balance for a P1,000,000 loan with the bank. Victoria may not withdraw the balance until the loan is repaid in 2025. What amount of cash and cash equivalents should Victoria report on December 31, 2022? A. 171,400 C. 421,400 B. 321,400 D. 271,400
1. San Company reported the following items on December 31, 2022: Treasury bills – 7 months maturity P 150,000 Treasury bills – 2 months maturity 75,000 Bank A – demand deposit 67,500 Undeposited customer check 26,000 Currency and coins on hand 2,900 Savings deposit – for plant expansion 2,000,000 Bank B – demand deposit 100,000 The demand deposit in Bank B represents a 20% compensating balance for a P1,000,000 loan with the bank. Victoria may not withdraw the balance until the loan is repaid in 2025. What amount of cash and cash equivalents should Victoria report on December 31, 2022? A. 171,400 C. 421,400 B. 321,400 D. 271,400
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
Related questions
Question
1. San Company reported the following items on December 31, 2022:
Treasury bills – 7 months maturity P 150,000
Treasury bills – 2 months maturity 75,000
Bank A – demand deposit 67,500
Undeposited customer check 26,000
Currency and coins on hand 2,900
Savings deposit – for plant expansion 2,000,000
Bank B – demand deposit 100,000
The demand deposit in Bank B represents a 20% compensating balance for a P1,000,000 loan with the
bank. Victoria may not withdraw the balance until the loan is repaid in 2025. What amount of cash and
cash equivalents should Victoria report on December 31, 2022?
A. 171,400 C. 421,400
B. 321,400 D. 271,400
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