Queen Company consists of: Cash in Bank 9,000,000 Cash restricted for additions to plant (expected to be disbursed in 2019) 12,000,000 Petty cash funds (all funds were replenished on December 31, 2017) 120,000 Included in the cash in bank is a compensating balance of P3,000,000 against short term borrowing arrangements at December 31, 2017. The compensating balance is not legally restricted as to withdrawal by Mc Queen company. What is the correct cash balance of Mc Queen company on December 31, 2017?

Queen Company consists of: Cash in Bank 9,000,000 Cash restricted for additions to plant (expected to be disbursed in 2019) 12,000,000 Petty cash funds (all funds were replenished on December 31, 2017) 120,000 Included in the cash in bank is a compensating balance of P3,000,000 against short term borrowing arrangements at December 31, 2017. The compensating balance is not legally restricted as to withdrawal by Mc Queen company. What is the correct cash balance of Mc Queen company on December 31, 2017?

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

l Globe LTE
8:03 PM
© 17%
A umindanao.mrooms.net
OI the DECEmper 31, 2017 palalice SSIEET OI VIC
Queen Company consists of:
Cash in
Bank
9,000,000
Cash restricted for additions to plant
(expected to be disbursed in
2019)
12,000,000
Petty cash funds (all funds were replenished
on
December 31,
2017)
120,000
Included in the cash in bank is a
compensating balance of P3,000,000 against
short term borrowing arrangements at
December 31, 2017. The compensating
balance is not legally restricted as to
withdrawal by Mc Queen company. What is
the correct cash balance of Mc Queen
company on December 31, 2017?
Answer:
9,120,000

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