Reporting Cash on the Balance Sheet
1. Indicate how each of the following items below should be reported using the following classifications:
(a) Cash,
(b) Restricted cash,
(c) Temporary investment,
(d) Receivable,
(e) Liability, or
(f) Office supplies.
(1) Checking account at First Security . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (20)
(2) Checking account at Second Security . . . . . . . . . . . . . . . . . . . . . . . . 350
(3) U.S. savings bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650
(4) Payroll account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
(5) Sales tax account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
(6) Foreign bank account—restricted (in equivalent U.S. dollars) . . . . . . 750
(7) Postage stamps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
(8) Employee’s postdated check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
(9) IOU from president’s brother . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
(10) Credit memo from a vendor for a purchase return . . . . . . . . . . . . . . 87
(11) Traveler’s check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
(12) Not-sufficient-funds check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
(13) Petty cash fund ($16 in currency and expense receipts for $84) . . . 100
(14) Money order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
2. What amount would be reported as unrestricted cash on the balance sheet?