Boyer International is currently preparing its financial statements for 2014. The company has several different sources of

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Boyer International is currently preparing its financial statements for 2014. The company has several different sources of cash and is trying to decide how to classify them. The sources of cash follow:
a. $30,000 in a checking account with The First National Bank.
b. $3,000 in checks dated December 4, 2014, received from customers.
c. $250,000 in certificates of deposit through The First National Bank, which are to mature on November 15, 2017.
d. $40,000 in a savings account with The First National Bank.
e. $1,000 in the petty cash fund. As of December 31, 2014, there are receipts totaling $600 in the petty cash drawer.
f. $50,000 held as a compensating balance for a loan with The First National Bank. The loan agreement requires Boyer International to maintain a compensating balance equal to 10 percent of the loan balance. During 2015, the outstanding principal balance will be reduced to $350,000.
g. $8,000 in a checking account with Interstate Federal Savings.
Indicate how each source listed should be classified on the December 31, 2014, balance sheet. Explain each answer.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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