ch07_sol - Name: Solution Date: Instructor: Course:...

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3e342596ae0fe030578ba3dc28b9f82c86a0c05b.xlsx, Exercise 7-1 Solution, Page 1 of 8, 03/29/2012, 01:32:27 Name: Solution Date: Instructor: Course: $600,000 and a commercial checking account has a balance of $800,000 Both are held at First National Bank of Olathe. write checks on this balance, $5,000,000 through salary reduction) are: $180,000 $1,500,000 $1,000 $150,000 $110,000 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. $500,000 These CDs have a maturity of 120 days. $125,000 $500,000 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 60 days. $7,700 Instructions: Cash for Weinstein includes the following: 1. Commercial savings account at First National Bank of Olathe with a balance of: $600,000 1. Commercial checking account at First National Bank of Olathe with a balance of: 800,000 2. Money market fund account held at Volonte Co.: 5,000,000 5. Petty cash fund of: 1,000 11. Commercial paper (cash equivalnet) of Sergio Leone Co. due in 60 days: 2,100,000 12. Currency and coin on hand: 7,700 Cash reported on December 31, 2012, balance sheet: $8,508,700 $180,000 $1,500,000 $150,000 7. The bank overdraft of $110,000 should be reported as a current liability. $110,000 $1,000,000 9. Postdated check of $125,000 should be reported as an accounts receivable. $125,000 $0 Intermediate Accounting , 14 th 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. 1. Commercial savings account has a balance of: 2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Weinstein to 3. Travel advances for executive travel for the first quarter of the next year (employee to reimburse 4. A separate cash fund is restricted for the retirement of long-term debt. Its balance is 5. Petty cash fund of: 6. An I.O.U. from Marianne Koch, a company customer, in the amount of 7. A bank overdraft of 8. The company has two certificates of deposit, each totaling 9. Weinstein has received a check that is dated January 12, 2013, in the amount of 10. Weinstein has agreed to maintain a cash balance of 11. Weinstein has purchased 12. Currency and coin on hand amounted to (a) Compute the amount of cash to be reported on Weinstein Co.’s balance sheet at December 31, 2012. (b) Indicate the proper reporting for items that are not reported as cash on the December 31, 2012, balance sheet. 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.
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ch07_sol - Name: Solution Date: Instructor: Course:...

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