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Louis Company had the following account balances at December 31, 2021: Cash in Metrobank 1,875,000 Cash in BPI 200,000 Cash on hand (includes a customer's check for P15,000 dated January 5, 2022 125,000 Cash restricted for acquisition of machinery (expected to be disbursed in 2022) 1,600,000 Cash in Metrobank include P300,000 of compensating balance against short-term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Louis. Question:  In the current asset section of Louis' December 31, 2021 statement of financial position, total cash should be reported at a. P2,185,000 b. P1,885,000 c. P3,785,000 d. P3,485,000

Louis Company had the following account balances at December 31, 2021: Cash in Metrobank 1,875,000 Cash in BPI 200,000 Cash on hand (includes a customer's check for P15,000 dated January 5, 2022 125,000 Cash restricted for acquisition of machinery (expected to be disbursed in 2022) 1,600,000 Cash in Metrobank include P300,000 of compensating balance against short-term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Louis. Question:  In the current asset section of Louis' December 31, 2021 statement of financial position, total cash should be reported at a. P2,185,000 b. P1,885,000 c. P3,785,000 d. P3,485,000

FINANCIAL ACCOUNTING
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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Louis Company had the following account balances at December 31, 2021:

Cash in Metrobank 1,875,000

Cash in BPI 200,000

Cash on hand (includes a customer's check for P15,000 dated January 5, 2022 125,000

Cash restricted for acquisition of machinery (expected to be disbursed in 2022) 1,600,000

Cash in Metrobank include P300,000 of compensating balance against short-term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Louis.

Question:
 In the current asset section of Louis' December 31, 2021 statement of financial position, total cash should be reported at

a. P2,185,000
b. P1,885,000
c. P3,785,000
d. P3,485,000

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