Cash

Problem 1

Determine the correct balance in J & Js cash account.

Cash balance per J & J Balance Sheet

Money market savings account $100,000

Certificate of deposit maturing on January 15th, 2016 $150,000

Cash held in the bank as compensating balance for a note due

March, 2017 $200,000

Note due from customer Jan. 1, 2016 $90,000

Certificate of deposit maturing on May 1st, 2016 $300,450

Outstanding deposits (from the bank reconciliation) $ 80,500

Post-dated check $115,000

Problem 2

Using the following format: (use the accounts/classification given in the J & J. statements

Amount Account increase (decrease)

Refer to problem 1, give the effect for each item that should not be part of the cash account, ie. if an item is to be reclassify, specify the amount, the account and if it increases or decreases the account.