On December 31, 2020, Allan Company had the following cash balances: Cash on hand and in bank 4,000,000 Cash restricted for bonds payable due on June 30, 2021 13,000 Time deposit 1,500,000 Savings deposit set aside for dividends payable on June 30, 2021 500,000 Cash in bank includes P175,000 of compensating balance against short term borrowing arrangement at December 31, 2020. The compensating balance is legally restricted as to withdrawal by Allan. A check of P75,000 dated January 15, 2021 and in payment of accounts payable was recorded and mailed on December 31, 2020. In the current assets section of the December 31, 2020statement of financial position, what amount should be reported as "cash and cash equivalents"?

On December 31, 2020, Allan Company had the following cash balances: Cash on hand and in bank 4,000,000 Cash restricted for bonds payable due on June 30, 2021 13,000 Time deposit 1,500,000 Savings deposit set aside for dividends payable on June 30, 2021 500,000 Cash in bank includes P175,000 of compensating balance against short term borrowing arrangement at December 31, 2020. The compensating balance is legally restricted as to withdrawal by Allan. A check of P75,000 dated January 15, 2021 and in payment of accounts payable was recorded and mailed on December 31, 2020. In the current assets section of the December 31, 2020statement of financial position, what amount should be reported as "cash and cash equivalents"?

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...

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