Question

For each individual situation, determine the amount that should be reported as cash 1. Checking account balance $906.500 certificate of deposit $1,372,000 cash advance to subsidiary of $960.400; utility deposit paid to as company $180 Cash balance 5 2.Checking account balance $588,000; an overdraft in special checking account at same bank as normal checking account of $16.cash held in a bond sinking fund $196,000 petty cash fund $20com and currency on hand $1.323. Cash balance $ 3. Checking account balance $578.200 postdated check from customer $10.780 cash restricted due to maintaining compensating balance requirement of $8.000, certified check from customer 59.604; postage stamps on hand $604 Cash balance 5 4. Checking account balance at bank $36.260,money market balance at mutual fund has checking privileges $47040 NSF check received from customer $784 Cash balance $ 5. Checking account balance $686.000 cash restricted for future plant expansion $490.000; short-term Treasury bills $176,400 which mature in 6 months cash advance received from customer $882 (not included in checking account balance cash advance of $6,860 to company executive payable on demand, refundable deposit of $25.400 paid to federal government to guarantee performance on construction contract Cash balance 5

Answer 1

The cash balance of $906,500 should be reported as cash. The certificate of deposit ave to be reported as temporary investment the cash advance to subsidiary needs to be yoported as Account : receivable, the utility deposit should be reported as a receivable from the gas company cash balance = $906,500 Î i checking acount balance - $ 588,000 Less: overdraft in special checking account - $ 16,660 Add: pretty cash fund & 294. Add: coms and curreny on & 1323 hand (cash balance = $5,72,957 Bonds should be reported as a non-current asset checking account balance → $ 599,900 Add: certified check from customer & 9604 cash balance = $5,87,804 o post dated check cannot be realized untill deposited, postage Stamps is a prepaid expense 4. checking account balance - $36, 260 Add mutual fund balance & $ 47,040 Cash balance = $ 83,300] NSF check needs to be reported as a receivable Checking account balance $ 6, 86,000 Add: cash advance received from customer - $ 882 [cash balance = $ 686,8827 cash restricted for future plant expansion of $490,000 needs to be Yepoyted as a non current assert.

© short-term treasury bills of $176,400 needs to be reported as a 1 temporary investment, cash advance of $680 to company executive needs to be reported as a receivable, refundable deposit of $25,480 paid to federal government needs to be reported as a receivable, the cash advance of $882 received from automer needs to be reported as a liability too.