Your audit of the Watt Corporation discovers the following information:
1. Reconciled balance in First National Bank checking account .... $ 2,360.75
2. Reconciled balance in City National Bank checking account .... (40.20)
3. Balance in First Federal savings account ............ 28,750.00
4. Certificate of deposit ................... 30,000.00
5. Postage stamps ...................... 100.00
6. Employee’s IOU ....................... 125.00
7. Employees’ travel advances .................. 1,640.00
8. Cash on hand (undeposited sales receipts) ........... 3,609.40
9. Traveler’s checks ....................... 600.00
10. Customer’s postdated check ................ 290.40

Required
1. What amount should be reported as cash on Watt’s balance sheet?
2. Describe the balance sheet treatment of the items not included in the cash balance.