Safari Company has a balance of P100,000 in cash & cash equivalents account as of December 31, 2022.The following items were found to be included in this balance.a. Compensating balance of P5,000 which is legally restricted as to withdrawalb. A negative bank balance of P10,000 from one of its bank accounts from just one bank.c. Plant expansion fund of P25,000 which is expected to be used on January 3, 2023.d. A certified check received from one customer last March 24, 2022.How much is the cash and cash equivalents to be presented in the 2022 Financial Statements?

Cash equivalents refers to those short-term investment of the company which are easily converted…

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How much is the cash and cash equivalents to be presented in the 2022 Financial Statements?

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

Safari Company has a balance of P100,000 in cash & cash equivalents account as of December 31, 2022.
The following items were found to be included in this balance.
a. Compensating balance of P5,000 which is legally restricted as to withdrawal
b. A negative bank balance of P10,000 from one of its bank accounts from just one bank.
c. Plant expansion fund of P25,000 which is expected to be used on January 3, 2023.
d. A certified check received from one customer last March 24, 2022.
How much is the cash and cash equivalents to be presented in the 2022 Financial Statements?

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