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net of tax, directly credited to Kapiz Co.'s account. The exchange rate at year-end is $1 is to P45. 17. How much is the cash and cash equivalents to be reported in the 20x1 financial statements? a. 14,720,000 b. 19,520,000 c. 12,430,000 d. 12,870,000

net of tax, directly credited to Kapiz Co.'s account. The exchange rate at year-end is $1 is to P45. 17. How much is the cash and cash equivalents to be reported in the 20x1 financial statements? a. 14,720,000 b. 19,520,000 c. 12,430,000 d. 12,870,000

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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The records of Kapiz Co. show the following balances on December 31, 20x1: Cash on hand P 400,000 Cash in Bank - current account Cash in Bank - peso savings deposit Cash in Bank - dollar deposit (unrestricted) Cash in Bank - dollar deposit (restricted) Cash in 3-month money-market account 3-month unrestricted time deposit Treasury bill, purchased 11/1/20x1, maturing 2/14/20x2 Treasury bond, purchased 3/1/20x1, maturing 2/28/20x2 Treasury note, purchased 12/1/20x1, maturing 2/28/20x2 Unused Credit Line 1,200,000 5,000,000 $ 100,000 250,000 P 500,000 $ 20,000 4,000,000 Redeemable preference shares, purchased 12/1/20x1, due on 740,000 3/1/20x2 Treasury shares, purchased 12/1/20x1, to be reissued on 1/5/20x2 Sinking fund $1,600,000 1,000,000 400,000 Additional information: Cash on hand includes a $40,000 check payable to Kapiz Co. dated December 29, 20x1. During December 20x0, check amounting to $30,000 was drawn against the Cash in bank - current account in payment of accounts payable. The check remains outstanding as of December 31, 20x1. a. 14,720,000 b. 19,520,000 200,000 400,000 The Cash in Bank – peso savings deposit includes $800,000 security bond on a pending labor case, in favor of a previous employee. The establishment of the bond is mandated by a court of law. c. 12,430,000 d. 12,870,000 The Cash in Bank - peso savings deposit also includes a compensating balance amounting to $500,000 which is not legally restricted. The Cash in Bank - dollar deposit (unrestricted) account includes interest of $4,000, net of tax, directly credited to Kapiz Co.'s account. The exchange rate at year-end is $1 is to $45. 17. How much is the cash and cash equivalents to be reported in the 20x1 financial statements?
Transcribed Image Text:The records of Kapiz Co. show the following balances on December 31, 20x1: Cash on hand P 400,000 Cash in Bank - current account Cash in Bank - peso savings deposit Cash in Bank - dollar deposit (unrestricted) Cash in Bank - dollar deposit (restricted) Cash in 3-month money-market account 3-month unrestricted time deposit Treasury bill, purchased 11/1/20x1, maturing 2/14/20x2 Treasury bond, purchased 3/1/20x1, maturing 2/28/20x2 Treasury note, purchased 12/1/20x1, maturing 2/28/20x2 Unused Credit Line 1,200,000 5,000,000 $ 100,000 250,000 P 500,000 $ 20,000 4,000,000 Redeemable preference shares, purchased 12/1/20x1, due on 740,000 3/1/20x2 Treasury shares, purchased 12/1/20x1, to be reissued on 1/5/20x2 Sinking fund $1,600,000 1,000,000 400,000 Additional information: Cash on hand includes a $40,000 check payable to Kapiz Co. dated December 29, 20x1. During December 20x0, check amounting to $30,000 was drawn against the Cash in bank - current account in payment of accounts payable. The check remains outstanding as of December 31, 20x1. a. 14,720,000 b. 19,520,000 200,000 400,000 The Cash in Bank – peso savings deposit includes $800,000 security bond on a pending labor case, in favor of a previous employee. The establishment of the bond is mandated by a court of law. c. 12,430,000 d. 12,870,000 The Cash in Bank - peso savings deposit also includes a compensating balance amounting to $500,000 which is not legally restricted. The Cash in Bank - dollar deposit (unrestricted) account includes interest of $4,000, net of tax, directly credited to Kapiz Co.'s account. The exchange rate at year-end is $1 is to $45. 17. How much is the cash and cash equivalents to be reported in the 20x1 financial statements?
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