Dapitan Company had the following account balances at December 31, 2023: Cash in bank Cash on hand Cash legally restricted for addition to plant and expected to be disbursed in 2024 P2,500,000 10,000 1,500,000 Cash in bank includes P200,000 compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Dapitan Company. In the current assets section of Dapitan Co.'s December 31, 2023 statement of financial position, how should be reported as cash?

Dapitan Company had the following account balances at December 31, 2023: Cash in bank Cash on hand Cash legally restricted for addition to plant and expected to be disbursed in 2024 P2,500,000 10,000 1,500,000 Cash in bank includes P200,000 compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Dapitan Company. In the current assets section of Dapitan Co.'s December 31, 2023 statement of financial position, how should be reported as cash?

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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