KC Company's Dec. 31, 2021 cash balance is P8,350,000 before possible adjustments for thefollowing:Found in KC Company's safe are the following:*Customer check dated Jan. 8, 2022 amounting to P93,500.• "KC Co.'s own check, amounting to P75,000, drawn on Dec. 27, 2021 and dated also as ofthat date.• *Bank draft received from a customer amounting to $53,000, initially recorded at theexchange rate of P52.50:$1. The bank draft is payable on demand upon presentation withthe bank. The exchange rate on Dec. 31, 2021 is P51.40:$1.• *Bond certificates totaling P500,000 and all maturing on February 14, 2022. The bondswere acquired on Nov. 16, 2021 and were debited to the "Investments in Debt Securities"account.• "Included in the cash balance is a bank deposit amounting to P2,800,000, which includes acompensating balance of P700,000 that is legally restricted as to withdrawal.How much cash and cash equivalents is presented in KC Company's Dec. 31, 2021 statementof financial position?

Cash and cash equivalent is a most liquid current asset that is posted under the head current assets…

Answered: KC Company's Dec. 31, 2021 cash balance…

Business

Accounting

KC Company's Dec. 31, 2021 cash balance is P8,350,000 before possible adjustments for the following:

College Accounting (Book Only): A Career Approach

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ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

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Question

KC Company's Dec. 31, 2021 cash balance is P8,350,000 before possible adjustments for the
following:
Found in KC Company's safe are the following:
*Customer check dated Jan. 8, 2022 amounting to P93,500.
• "KC Co.'s own check, amounting to P75,000, drawn on Dec. 27, 2021 and dated also as of
that date.
• *Bank draft received from a customer amounting to $53,000, initially recorded at the
exchange rate of P52.50:$1. The bank draft is payable on demand upon presentation with
the bank. The exchange rate on Dec. 31, 2021 is P51.40:$1.
• *Bond certificates totaling P500,000 and all maturing on February 14, 2022. The bonds
were acquired on Nov. 16, 2021 and were debited to the "Investments in Debt Securities"
account.
• "Included in the cash balance is a bank deposit amounting to P2,800,000, which includes a
compensating balance of P700,000 that is legally restricted as to withdrawal.
How much cash and cash equivalents is presented in KC Company's Dec. 31, 2021 statement
of financial position?

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