Burr Company had the following account balances at December31, 1998:Cash in bankCash on handCash legally restricted for additions to plant(expected to be disbursed in 1999)2,250,000125,0001,600,000Cash in bank includes P600,000 of compensating balance againstshort-term borrowing arrangement. The compensating balances-not legally restricted as to withdrawal by Burr. In the currentassets section of Burr's December 31, 1998 balance sheet, totalcash should be reported at

Current assets are all of a company's assets that are projected to be sold, consumed, utilised, or…

Answered: Burr Company had the following account…

Burr Company had the following account balances at Decem 31, 1998: Cash in bank Cash on hand Cash legally restricted for additions to plant (expected to be disbursed in 1999) 2,250 125 1,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Burr Company had the following account balances at December
31, 1998:
Cash in bank
Cash on hand
Cash legally restricted for additions to plant
(expected to be disbursed in 1999)
2,250,000
125,000
1,600,000
Cash in bank includes P600,000 of compensating balance against
short-term borrowing arrangement. The compensating balance
s-not legally restricted as to withdrawal by Burr. In the current
assets section of Burr's December 31, 1998 balance sheet, total
cash should be reported at

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