Question
1.Blue Company had the following cash balances at December 31, 2017: Undeposited currency and coinsP 35,000 Unrestricted demand deposits1,450,000 Company checks written (and deducted from
1.Blue Company had the following cash balances at December 31, 2017:
Undeposited currency and coinsP 35,000
Unrestricted demand deposits1,450,000
Company checks written (and deducted from the
Demand deposits amount) but not scheduled
to be delivered until January 6, 2018180,000
Time deposits restricted for use (expected use in 2018)3,000,000
In exchange for a guaranteed line of credit, Blue has agreed to maintain a minimum balance of P150,000 in its unrestricted demand deposit account. How much should Blue report as cash on its December 31, 2017 balance?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started