ACCT 422 WEEK2 - WEEK 2 INDIVIDUAL ASSIGNMENT E7-2...

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WEEK 2 INDIVIDUAL ASSIGNMENT E7-2 Instructions For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as cash, explain the rationale. 1. Checking account balance $925,000; certificate of deposit $1,400,000(temporary); cash advance to subsidiary of $980,000(A.R.); utility deposit paid to gas company $180(A.R). The amount that should be reported as cash is the checking account bal- ance of $925,000. 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 (non current) ; petty cash fund $300; coins and currency on hand $1,350. The amount that should be reported as cash would be $618,650. 3. Checking account balance $590,000; postdated check from customer $11,000(re- ceivable); cash restricted due to maintaining compensating balance requirement of $100,000; certified check from customer $9,800; postage stamps on hand $620 (office supplies). The amount that should be reported as cash is $599,800. 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 (receiv- able). The amount that should be reported as cash is $85,000. 5. Checking account balance $700,000; cash restricted for future plant expansion $500,000 ( non current); short-term Treasury bills $180,000(temporary); cash advance received from customer $900(liability) (not included in checking account balance); cash advance of $7,000 to company executive(received), payable on demand; refundable de-
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ACCT 422 WEEK2 - WEEK 2 INDIVIDUAL ASSIGNMENT E7-2...

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