Lipton Company shows the following account balances in their financial records as of December 31, 2016: Checking account at Morgan Bank. Checking account at Land Bank Payroll account- National Bank Foreign bank account- restricted . Postage stamps Employee's post-dated checks 1.0.U. form president's brother Traveler's check . P (20,000) 500,000 100,000 750,000 22,000 30,000 75,000 50,000 18,000 No-sufficient funds check Petty cash fund (16,000 in currency & expenses for P84,000) .. 100,000 Cashier's Check . 36,000 What is the correct cash balance to be reported in the statement of financial position of Lipton Company on December 31, 2016 assuming the bank overdraft or repayable on demand and it's integral to the entity's cash а. Р682,000 b.P686,000 c. P702,000 d.P704,000|
Lipton Company shows the following account balances in their financial records as of December 31, 2016: Checking account at Morgan Bank. Checking account at Land Bank Payroll account- National Bank Foreign bank account- restricted . Postage stamps Employee's post-dated checks 1.0.U. form president's brother Traveler's check . P (20,000) 500,000 100,000 750,000 22,000 30,000 75,000 50,000 18,000 No-sufficient funds check Petty cash fund (16,000 in currency & expenses for P84,000) .. 100,000 Cashier's Check . 36,000 What is the correct cash balance to be reported in the statement of financial position of Lipton Company on December 31, 2016 assuming the bank overdraft or repayable on demand and it's integral to the entity's cash а. Р682,000 b.P686,000 c. P702,000 d.P704,000|
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ANSWER IS LETTER A. PROVIDE THE SOLUTION
Transcribed Image Text:Lipton Company shows the following account balances in their financial records as of December 31, 2016:
Checking account at Morgan Bank
Checking account at Land Bank
Payroll account- National Bank
Foreign bank account- restricted.
Postage stamps ..
Employee's post-dated checks
1.o.U. form president's brother
Traveler's check
P (20,000)
500,000
100,000
750,000
22,000
30,000
75,000
50,000
18,000
No-sufficient funds check
Petty cash fund (16,000 in currency & expenses for P84,000). 100,000
Cashier's Check
36,000
What is the correct cash balance to be reported in the statement of financial position of Lipton Company on
December 31, 2016 assuming the bank overdraft or repayable on demand and it's integral to the entity's
cash
a. P682,000
b.P686,000
c. P702,000
d.P704,000|
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