Question

Cash and Other Items The following information has been extracted from Atwood Corporation's accounting records: Cash on hand (undeposited sales receipts) Certificates of deposit Customer's note receivable Reconciled balance in University National Bank checking account Reconciled balance in Second National Bank checking account Balance in City Federal savings account Customer's postdated check Employee travel advances $ 1,535 25,000 1,000 (350) 9,260 7,410 980 1,200 Cash in bond sinking fund 8,300 Bond sinking fund investments 14,600 Required: 1. Determine the balance in Atwood's Cash account. 2. Classify the balance sheet treatment for each item. If the item should be included in Cash, select "Cash" from the "Classification of Items" list. If not, select the correct choice to show how the item would be reported on the balance sheet.

Answer 1

Answer 1 Calculation of balance in Atwood's Cash Account Cash on hand (undeposited sales receipts) Reconciled balance in Second National Bank Checking account Balance in City Federal Savings account Balance in Cash Account $1,535 $9,260 $7,410 $18,205 2 Classification of Items Items Included in Cash Balance Classification of Items 1 Cash on hand (undeposited sales receipts) Yes Cash 2 Certificates of deposit 2 Temporary Investments 3 Customer's note receivable 2 Notes Receivable 4 Reconciled balance in University National Bank checking account 2 Current Liability 5 Reconciled balance in Second National Bank checking account Yes Cash 6 Balance in City Federal savings account Cash 7 Customer's postdated check Accounts Receivable 8 Employee travel advances Prepaid Expense 9 Cash in bond sinking fund Long-term Investments 10 Bond sinking fund investments Long-term Investments