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Unformatted text preview: E7-21.2. Cash balance of $584,650 is reported, computed as follows:Checking account balance$600,000 Overdraft($17,000)Petty cash$300 Coin and currency$1,350 $584,650 3. $599,800 of cash balance should be reported. It is computed as follows:Checking account balance$590,000 Certified check from customer$9,800 $599,800 4. Cash balance of $90,000 is computed as follows:Checking account balance$42,000 Money market mutual fund$48,000 $90,000 The NSF check received from customer should be reported as receivable.5. Cash balance of $700,900 should be reported. It is computed as follows:Checking account balance$700,000 Cash adv rec'd from customer$900 $700,900 Cash balance $925,000. Only the checking account balance should be reported as cash. The certificates of deposit of $1,400,000 should be reported as a temporary investment, the cash advance to subsidiary of $980,000 should be reported as a receivable, and the utility deposit of $180 should be identified as a receivable from the gas company.Cash held in a bond sinking fund is restricted. Assuming that the bonds are noncurrent, the restricted cash is also reported as noncurrent.The postdated check of $11,000 should be reported as a receivable. Cash restricted due to compensating balance should be described in a note indicating the type of arrangement and amount. Postage stamps on hand are reported as part of office supplies inventory or prepaid expenses.Cash restricted for future plant expansion of $500,000 should be reported as a noncurrent asset. Short-term treasury bills of $180,000 should be reported as a temporary investment. Cash advance received from customer of $900 should also be reported as a liability; cash advance of $7,000 to company executive and the refundable deposit of $26,000 paid to federal government should be reported as a receivable.E7-141.Cash.$18,000 Loss on Sale of Receivable ($20,000 x 10%)$2,000 Accounts Receivable..$20,000 2.Cash.$50,600 Finance charge ($55,000 x 8%).$4,400 Notes Payable.$55,000...
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This note was uploaded on 12/13/2009 for the course ACCOUNTING ACC 100 A taught by Professor A during the Fall '09 term at University of Phoenix.
- Fall '09
- Financial Accounting