Question: For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as cash, explain the rationale Checking
For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as cash, explain the rationale
Checking account balance $700,000; cash restricted for future plant expansion $500,000; short-term Treasury bills $180,000; cash advance received from customer $900 (not included in checking account balance); cash advance of $7,000 to company executive, payable on demand; refundable deposit of $26,000 paid to federal government to guarantee performance on construction contract.
Book solution: Checking account balance(700,000) + Cash advance received from customers(900)= 70,900. I know the answer is 70,900.... but can someone please explain to me why the $7000 is not included and why the $900 is? aren't they both cash advance?
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