Problem 1-8 (AICPA Adapted)
On December 31, 2024, West Company had the following cash balances:
Cash in bank-current account 1,800,000
Petty cash fund -all funds were reimbursed at year-end 50,000
Time deposit -due February 1, 2025 250,000
Saving deposit in bank closed by BSP 1,000,000
Cash in bank included P600,000 of compensating balance against short term
borrowing arrangement. The compensating balance is legally restricted as to
withdrawal.
What total amount should be reported as cash and cash equivalents on December 31,
2025?
a.1,500,000
b. 2,500,000
c. 1,250,000
d. 2.100,000
This study source was downloaded by 100000899194722 from CourseHero.com on 05-30-2025 14:17:10 GMT -05:00
https://www.coursehero.com/file/249174646/Problem-1-8-INTACC-1pdf/
On December 31, 2024, West Company had the following cash balances:
Cash in bank-current account 1,800,000
Petty cash fund -all funds were reimbursed at year-end 50,000
Time deposit -due February 1, 2025 250,000
Saving deposit in bank closed by BSP 1,000,000
Cash in bank included P600,000 of compensating balance against short term
borrowing arrangement. The compensating balance is legally restricted as to
withdrawal.
What total amount should be reported as cash and cash equivalents on December 31,
2025?
a.1,500,000
b. 2,500,000
c. 1,250,000
d. 2.100,000
This study source was downloaded by 100000899194722 from CourseHero.com on 05-30-2025 14:17:10 GMT -05:00
https://www.coursehero.com/file/249174646/Problem-1-8-INTACC-1pdf/
