Week 2 - Individual Assignments - David Trejo

Week 2 - Individual Assignments - David Trejo - E7-2...

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Unformatted text preview: E7-2 (Determine Cash Balance) Presented below are a number of independent situations.InstructionsFor each individual situation, determine the amount that should be reported as cash. If the item(s) is notreported as cash, explain the rationale.Cash balance is $584,650 = ($600,000 - $17,000) + $300 + $1,350 Bonds should be reported as a non-current asset$599,800 Postdated check cannot be realized until deposited, postage stamps is a prepaid expense.85000, the NSF check needs to be reported as a receivable.$700,900 1. Checking account balance $925,000; certificate of deposit $1,400,000; cash advance to subsidiary of $980,000; utility deposit paid to gas company $180. The cash balance of $925,000 should be reported as cash. The CDs are to be reported as temporary investment, the cash advance to subsidiary needs to be reported as A/R, the utility deposit should be reported as a receivable from the gas company.2. Checking account balance $600,000; an overdraft in special checking account at same bank as normal checking account of $17,000; cash held in a bond sinking fund $200,000; petty cash fund $300; coins and currency on hand $1,350. 3. Checking account balance $590,000; postdated check from customer $11,000; cash restricted due to maintaining compensating balance requirement of $100,000; certified check from customer $9,800; postage stamps on hand $620. 4. Checking account balance at bank $37,000; money market balance at mutual fund (has checking privileges) $48,000; NSF check received from customer $800. 5. Checking account balance $700,000; cash restricted for future plant expansion $500,000; short-term Treasury bills $180,000; cash advance received from customer $900 (not included in checking account balance); cash advance of $7,000 to company executive, payable on demand; refundable deposit of $26,000 paid to federal government to guarantee performance on construction contract. Cash restricted for future plant expansion of $500,000 needs to be reported as a noncurrent asset, Short-term treasury bills of $180,000 needs to be reported as a temporary investment, cash advance of $7,000 to company executive needs to be reported as a receivable, refundable deposit of $26,000 paid to federal government needs to be reported as a receivable, the cash advance of $900 received from a customer needs to be reported as a liability too.reported as a receivable, the cash advance of $900 received from a customer needs to be reported as a liability too....
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This note was uploaded on 01/12/2011 for the course ACCTING Acc423 taught by Professor Rob during the Spring '10 term at DeVry Long Beach.

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Week 2 - Individual Assignments - David Trejo - E7-2...

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