Reference no: EM132730139

Question - Blossom Inc. owns these assets at the statement of financial position date:

Cash in bank (savings account) $21,400(1)

Cash on hand 1,500

Income tax refund due from the Canada Revenue Agency 2,000

Cash in bank (chequing account) 14,400

Postdated cheques received from customers 1,100

Note: (1) As a condition of a long-term loan, the bank requires Blossom to maintain a minimum balance of $4,600 in the account, which is included in the savings account balance shown above.

What amount should be reported as cash and cash equivalents in the statement of financial position?

For any item not included in cash and cash equivalents in Part (a), identify where it should be reported. For the items included in Part (a), put it as "Not Applicable". (current asset, non-current asset, or not applicable)

1. Cash in bank (savings account)

2. Compensating balance

3. Cash on hand

4. Income tax refund due from the Canada Revenue Agency

5. Cash in bank (chequing account)

6. Postdated cheques received from customers