3e342596ae0fe030578ba3dc28b9f82c86a0c05b.xlsx, Exercise 7-1 Solution, Page 1 of 8, 03/29/2012, 01:32:27
and a commercial checking
account has a balance of
Both are held at First National Bank of Olathe.
write checks on this balance,
through salary reduction) are:
has occurred at one of the banks the company uses to
deposit its cash receipts. At the present time, the company has no deposits at this bank.
These CDs have
a maturity of 120 days.
at all times at First National
Bank of Olathe to ensure future credit availability.
$2,100,000 of commercial paper of Sergio Leone Co. which is due in
Cash for Weinstein includes the following:
1. Commercial savings account at First National Bank of Olathe with a balance of:
1. Commercial checking account at First National Bank of Olathe with a balance of:
2. Money market fund account held at Volonte Co.:
5. Petty cash fund of:
11. Commercial paper (cash equivalnet) of Sergio Leone Co. due in 60 days:
12. Currency and coin on hand:
Cash reported on December 31, 2012, balance sheet:
7. The bank overdraft of $110,000 should be reported as a current liability.
9. Postdated check of $125,000 should be reported as an accounts receivable.
Edition by Kieso, Weygandt, and Warfield
Primer on Using Excel in Accounting
by Rex A Schildhouse
E7-1 (Determining Cash Balance)
The controller for Weinstein Co. is attempting to determine the
amount of cash and cash equivalents to be reported on its December 31, 2012, balance sheet. The
following information is provided.
Commercial savings account has a balance of:
Money market fund account held at Volonte Co. (a mutual fund organization) permits Weinstein to
Travel advances for executive travel for the first quarter of the next year (employee to reimburse
A separate cash fund is restricted for the retirement of long-term debt. Its balance is
Petty cash fund of:
An I.O.U. from Marianne Koch, a company customer, in the amount of
A bank overdraft of
The company has two certificates of deposit, each totaling
Weinstein has received a check that is dated January 12, 2013, in the amount of
Weinstein has agreed to maintain a cash balance of
Weinstein has purchased
Currency and coin on hand amounted to
Compute the amount of cash to be reported on Weinstein Co.’s balance sheet at
December 31, 2012.
Indicate the proper reporting for items that are not reported as cash on the December 31, 2012,
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
6. An IOU from Marianne Koch should be reported as a receivable in the amount of