How much is the amount of cash to be reported in the financial statements?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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Transcribed Image Text:The cash balance of
1 Co. comprises the following:
Cash on hand
300,000
Cash in bank - savings - Aewan bank
600,000
|
Cash in bank - current - Aewan bank
(160,000)
Cash in bank
current – Bakalang Bank
(140,000)
Cash in bank - deposit escrow – Bakalang Bank 240,000
Cash in bank - savings - Chosero Bank
90,000
Additional Information:
Cash on hand excludes undeposited collections of P60,000; The
cash in bank-savings maintained at Aewan Bank includes a
P100,000 compensating balance which is restricted.
How much is the amount of cash to be reported in the financial
statements?
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