Question

Presented below are independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $795,500; certificate of deposit $1,204,000; cash advance to subsidiary of $842,800; utility deposit paid to gas company $156. Cash balance s 2. Checking account balance $516,000; an overdraft in special checking account at same bank as normal checking account of $14,620; cash held in a bond sinking fund $172,000; petty cash fund $258; coins and currency on hand $1,161. Cash balances 3. Checking account balance $507,400; postdated check from customer $9,460; cash restricted due to maintaining compensating balance requirement of $86,000; certified check from customer $8,428; postage stamps on hand $532. Cash balance 4. Checking account balance at bank $31,820; money market balance at mutual fund (has checking privileges) $41,280; NSF check received from customer $688. Cash balances 5. Checking account balance $602,000; cash restricted for future plant expansion $430,000; short-term Treasury bills $154,800 (which mature in 6 months); cash advance received from customer $774 (not included in checking account balance); cash advance of $6,020 to company executive, payable on demand; refundable deposit of $22,360 paid to federal government to guarantee performance on construction contract. Cash balances

Answer 1

detamine the cash t for each individual situation (I) cash balance $ 7,95,500 C D -> temporary Investment Advance Account Receivable Utility = yeceivable from gas company) (21 cash balance & 5027991 [cash balance : (516000 -14620 +258 + 1161) Bond Deposted oS Non-current asset cash balance $515828 Ir cash bal. = $507400 + $8428 = $5,158287 posted check = cannot be realized until deposited postage stomp a prepaid expense.] 7 cash balance $ 73100 cash balance $318204 412807 I NSF check reported as a receivable (5) cash balance e 602 774 I ( 6020004 770)

I cash restricted for future plant expansion should be reported as - Noncurrent Assets short term treasury bills temporary investment cash advance to exectutive > Receivable Defundable deposit to goven - Receivable cash advance (774) - is reported as trability too.