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University of California, Berkeley, UGBA 120AB,Problem 1-9 INTACC 1,

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University of California, Berkeley,UGBA 120AB,Problem 1-9 INTACC 1,all answers are 100% correct

Institution
University Of California - Berkeley
Course
UGBA 120AB (UGBA120AB)

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Problem 1-9 (AICPA Adapted)
Burr Company had the following account balances on December 31, 2024:
Cash in bank 2,250,000
Cash on hand 125,000
Cash restricted for addition to plant in January 2025 1,600,000


Cash in bank included P600,000 of compensating balance against short-term
borrowing arrangement. The compensating balance is not legally restricted as to
withdrawal.
What total amount should be reported as cash under current on December 31, 2024?
a.1,775,000
b,2,375,000
c. 3,375,000
d. 3,975,000




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