Tropical Inc. is preparing its December 31 financial statements, and it must determine the proper balance...

 

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Tropical Inc. is preparing its December 31 financial statements, and it must determine the proper balance sheet classification of financial statement items. Complete the table as follows: 1. Indicate whether each amount would be classified as cash. 2. Indicate an alternative classification if the amount is excluded from cash. Financial Statement Item Include in Cash Amount Classification 1. Coins and currency, $1,000. 1000 Cash 2. Checks received from customers, $12,000. 12000 Cash 3. Certificates of deposit (CDs), $16,000, 6-month term. 4. Petty cash fund, $800. 수 5. Postage stamps, $120. Accounts Receivable 6. First Star checking account balance, $42,000. Accounts Payable 7. Postdated check from customer, $200. Cash 8. Money order from customer, $300. Cash Equivalent 9. Cash in savings account, $20,000. Other Receivable 10. Bank draft from customer, $800. Prepaid Expense Refundable Deposit (current asset) Refundable Deposit (current liability) Short-Term Investment 11. Investment in commercial paper, 30-day term, $160. 12. Utility deposit to a utilities company (refundable), $100. 13. Certified check from customer, $2,000. Note Receivable 14. NSF (non-sufficient fund) check from R.Roe, $400. Restricted Cash 15. Cash advance to company executive, collectible upon demand, $40,000. N/A 16. Hometown Credit Union, checking account, overdraft, $4,000. 17. Travel advances to employees, $240. 18. Cashier's check, $500. Tropical Inc. is preparing its December 31 financial statements, and it must determine the proper balance sheet classification of financial statement items. Complete the table as follows: 1. Indicate whether each amount would be classified as cash. 2. Indicate an alternative classification if the amount is excluded from cash. Financial Statement Item Include in Cash Amount Classification 1. Coins and currency, $1,000. 1000 Cash 2. Checks received from customers, $12,000. 12000 Cash 3. Certificates of deposit (CDs), $16,000, 6-month term. 4. Petty cash fund, $800. 수 5. Postage stamps, $120. Accounts Receivable 6. First Star checking account balance, $42,000. Accounts Payable 7. Postdated check from customer, $200. Cash 8. Money order from customer, $300. Cash Equivalent 9. Cash in savings account, $20,000. Other Receivable 10. Bank draft from customer, $800. Prepaid Expense Refundable Deposit (current asset) Refundable Deposit (current liability) Short-Term Investment 11. Investment in commercial paper, 30-day term, $160. 12. Utility deposit to a utilities company (refundable), $100. 13. Certified check from customer, $2,000. Note Receivable 14. NSF (non-sufficient fund) check from R.Roe, $400. Restricted Cash 15. Cash advance to company executive, collectible upon demand, $40,000. N/A 16. Hometown Credit Union, checking account, overdraft, $4,000. 17. Travel advances to employees, $240. 18. Cashier's check, $500.

Answer rating: 100% (QA)

No Financial Statement Item Included in Cash Amount Classification 1 Coin and Currency 1000 1000 Cas... View the full answer