WEEK 2 INDIVIDUAL ASSIGNMENT
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.
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.
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.
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.
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-