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ch 8 homework solutions

ch 8 homework solutions - EXERCISE 8-1(10 15 minutes(a(b...

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EXERCISE 8-1 (10--15 minutes) (a) Cash includes the following: 1. Commercial savings account----- First National Bank of Yojimbo .............................. $ 600,000 1. Commercial checking account----- First National Bank of Yojimbo .............................. 900,000 2. Money market fund-----Volonte ................................... 5,000,000 5. Petty cash ................................................................... 1,000 11. Commercial Paper (cash equivalent) ........................ 2,100,000 12. Currency and coin on hand ....................................... 7,700 Cash reported on December 31, 2008, balance sheet ..... $8,608,700 (b) Other items classified as follows: 3. Travel advances (reimbursed by employee)* should be reported as receivable-----employee in the amount of $180,000. 4. Cash restricted in the amount of $1,500,000 for the retirement of long-term debt should be reported as a noncurrent asset identified as ‘‘ Cash restricted for retirement of long-term debt. ’’ 6. An IOU from Marianne Koch should be reported as a receivable in the amount of $190,000. 7. The bank overdraft of $110,000 should be reported as a current liability.** 8. Certificates of deposits of $500,000 each should be classified as temporary investments.
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