Raven Corp has a checking account balance of $150,000, a bank overdraft of $40,000 on a different bank account at a different bank, petty cash of $1,000, post-dated checks received totaling $10,000, and a certificate of deposit (that matures in four months)

Raven Corp has a checking account balance of $150,000, a bank overdraft of $40,000 on a different bank account at a different bank, petty cash of $1,000, post-dated checks received totaling $10,000, and a certificate of deposit (that matures in four months)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Raven Corp has a checking account
balance of $150,000, a bank overdraft
of $40,000 on a different bank
account at a different bank, petty cash
of $1,000, post-dated checks received
totaling $10,000, and a certificate of
deposit (that matures in four months)
for $200,000. How much should be
reported as cash in the balance sheet?
a. $111,000
b. $121,000
c. $151,000
d. $321,000

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