.On December 31, 2021, Alfonso Company had the following cash balances: Cash in bank, 15,000,000 Petty cash fund, 50,000 Time deposit 5,000,000 Savings deposit 2,000,000 Cash in bank includes P500,000 of compensating balance against short term borrowing arrangement at December 31, 2021. The compensating balance is legally restricted as to withdrawal by Alfonso. A check of P300,000 dated January 15, 2022 in payment of accounts payable was recorded and mailed on December 31, 2021. In the current assets section of the December 31, 2021 statement of financial position, what amount should be reported as “cash and cash equivalents”? 14,850,000 16,850,000 21,800,000 21,850,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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.On December 31, 2021, Alfonso Company had the following cash balances:

Cash in bank, 15,000,000
Petty cash fund, 50,000
Time deposit 5,000,000
Savings deposit 2,000,000

Cash in bank includes P500,000 of compensating balance against short term borrowing arrangement at December 31, 2021.  The compensating balance is legally restricted as to withdrawal by Alfonso.  A check of P300,000 dated January 15, 2022 in payment of accounts payable was recorded and mailed on December 31, 2021.  In the current assets section of the December 31, 2021 statement of financial position, what amount should be reported as “cash and cash equivalents”?
 
 
14,850,000
16,850,000
21,800,000
21,850,000
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