TRUE Company had the following account balances at December 31, 2020: Cash in bank P5,000,000 Cash on hand 200,000 Time deposits 500,000 Cash as bond sinking fund due June 30, 2021 1,000,000 Cash legally restricted for additions to plant (expected to be disbursed in 2021) 2,000,000 Cash as preferred stock redemption fund (redemption date October 31, 2021) 2,500,000 Cash in bank includes P1,000,000 of compensating balance against short-term borrowing arrangement. The compensating balance is not legally restricted as to withdrawal by TRUE. In the current assets section of the December 31, 2020 Statement of Financial Position, total cash should be reported at how much?

TRUE Company had the following account balances at December 31, 2020: Cash in bank P5,000,000 Cash on hand 200,000 Time deposits 500,000 Cash as bond sinking fund due June 30, 2021 1,000,000 Cash legally restricted for additions to plant (expected to be disbursed in 2021) 2,000,000 Cash as preferred stock redemption fund (redemption date October 31, 2021) 2,500,000 Cash in bank includes P1,000,000 of compensating balance against short-term borrowing arrangement. The compensating balance is not legally restricted as to withdrawal by TRUE. In the current assets section of the December 31, 2020 Statement of Financial Position, total cash should be reported at how much?

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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