Question

Assionment> Open Assignment CALCULATOR PRINTER VERSION BACK NEXT Presented below are a number of independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $928,400; certificate of deposit $1,438,400; cash advance to subsidiary of $903,530; utility deposit paid to gas company $191 Cash balance 928400 2. Checking account balance $501,500; an overdraft in special checking account at same bank as normal checking account of $19,200; cash held in a bond sinking fund $232,800; petty cash fund $350; coins and currency on hand $1,540 Cash balance 3. Checking account balance s618,300; postdated check from customer $9,900; cash restricted due to maintaining compensating balance requirement of $103,800; certified check from customer $10,576; postage stamps on hand $559. Cash balance 4. Checking account balance at bank $45,650; money market balance at mutual fund (has checking privileges) $51,700; NSF check recelved from customer $755 Cash balance

Answer 1

For each individual situation, determine the amount that should be reported as cash.
1. Checking account balance $928,400; certificate of deposit $1,438,400; cash advance to subsidiary of $983,530; utility deposit paid to gas company $191
Cash balance (checking  account  balance)	$                                             928,400.00
The certificates of deposit of $1,438,400 shouldbe reported as  a  temporary  investment,  the  cash  advance  to  subsidiary  of  $983,530 should  be reported  as a  receivable,  and  the  utility  deposit  of  $191  should be identified as a receivable from the gas company.
2. Checking account balance $501,500; an overdraft in special checking account at same bank as normal checking account of $19,280; cash held in a bond sinking fund $232800; petty cash fund $350; coins and currency on hand $1,540.
Checking account balance	$                                             501,500.00
Overdraft	$                                             (19,280.00)
Petty Cash	$                                                    350.00
Coin and currency	$                                                 1,540.00
Cash balance	$                                             484,110.00
Cash held in a bond sinking fund is restricted. Assuming that the bonds are noncurrent, the restricted cash is also reported as noncurrent.
3. Checking account balance $618,300; postdated check from a customer $9900; cash restricted due to maintaining compensating balance requirement of $103,800; certified check from customer $10,576 postage stamps on hand $559.
Checking account balance	$                                             618,300.00
Certified check from customer	$                                               10,576.00
Cash balance	$                                             628,876.00
The  postdated  check  of  $9900  should  be  reported as  a  receivable.  Cash restricted  due  to  compensating  balance  should  be  described  in  a  note indicating the type of arrangement and amount. Postage stamps on hand are reported as part of office supplies inventory or prepaid expenses.
4. Checking account balance at bank $45,650; money market balance at mutual fund (has checking privileges) $51,780; NSF check received from customer $755.
Checking account balance	$                                               45,650.00
Money market mutual fund	$                                               51,780.00
Cash balance	$                                               97,430.00
The NSF check received from customer should be reported as a receivable.
5. Checking account balance $700700; cash restricted for future plant expansion $515,200; short-term Treasury bills $186,470; cash advance received from customer $965(not included in checking account balance); cash advance of $6,740 to company executive, payable on demand; refundable deposit of $24,520 paid to federal government to guarantee performance on construction contract.
Checking account balance	$                                             700,700.00
Cash advance received from customer	$                                                    965.00
Cash balance	$                                             701,665.00
Cash restricted for future plant expansion of $515,200 should be reported as a noncurrent asset. Short-term treasury bills of $186,470 should be reported as  a temporary  investment.  Cash  advance  received  from customer  of  $965 should  also  be  reported  as  a  liability;  cash  advance  of  $6,740  to  company executive  should  be  reported  as  a  receivable;  refundable  deposit  of  $24,520 paid to federal government should be reported as a receivable.