The following items were included as cash on the balance sheet for Lawson Co. How should each

Question:

The following items were included as cash on the for Lawson Co. How should each of the items have been reported?
(a) Demand deposits with bank
(b) Restricted cash deposits in foreign banks
(c) Bank account used for payment of salaries and wages
(d) Cash in a special cash account to be used currently for the construction of a new building
(e) Customers’ checks returned by the bank marked “Not Sufficient Funds”
(f) Customers’ postdated checks
(g) IOUs from employees
(h) Postage stamps received in the mail for merchandise
(i) Postal money orders received from customers not yet deposited
(j) Notes receivable in the hands of the bank for collection
(k) Special bank account in which sales tax collections are deposited
(l) Customers’ checks not yet deposited

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...