Several independent situations follow.
l. Chequing account balance $625,000; certificate of deposit $1.1 million; cash advance to subsidiary $980,000; utility deposit paid to gas company $ 180.
2. Chequing account balance $500,000; overdraft in special chequing account at same bank as normal chequing account 517,000; cash held in bond sinking fund $200,000; petty cash fund $300; cash on hand $1,350.
3. Chequing account balance $540,000; postdated cheque from customer $11,000; cash restricted to maintain compensating balance requirement $100,000; certified cheque from customer $9,800; postage stamps on hand $620.
4. Chequing account balance at bank $57,000; money-market balance at mutual fund (has chequing privileges) $38,000; NSF cheque received from customer $800.
5. Chequing account balance $700,000; cash restricted for future plant expansion $500,000; short-term (60-day) treasury bills $180,000; cash advance received from customer $900 (not included in chequing account balance); cash advance of S7,000 to company executive, payable on demand; refundable deposit of $26,000 paid to federal government to guarantee performance on construction contract.
For each situation above, determine the amount that should be reported as cash. If the item(s) is (are) not reported as cash, explain why.

  • CreatedSeptember 18, 2015
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