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Homework - Ch 7 - Exercise 7-1 cash and cash equivalents...

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Exercise 7-1 cash and cash equivalents; noncash item classification Requirement 1 Cash and cash equivalents includes: a. Balance in checking account $13,500 Balance in savings account 22,100 b. Undeposited customer checks 5,200 c. Currency and coins on hand 580 f. U.S. treasury bills with 2-month maturity 15,000 Total $56,380 Requirement 2 d. The $400,000 savings account will be used for future plant expansion and therefore should be classified as a noncurrent asset, either in other assets or investments . e. The $20,000 in the checking account is a compensating balance for a long-term loan and should be classified as a noncurrent asset, either in other assets or investments . f. The $20,000 in 7-month treasury bills should be classified as a current asset along with other temporary investments.
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