Reconciled balance in First National Bank checking account $3,725.80 Reconciled balance in City National Bank checking account (40.20) Balance in First Federal savings account 34,291.00 Certificate of deposit 30,000.00 Employee's IOU 125.00 Employees' travel advances 1,640.00 Cash on hand (undeposited sales receipts) 1,432.10 Prepaid debit card 600.00 Customer's postdated check 290.40 Required: 1. What amount should be reported as cash on Watt's balance sheet? (Place the necessary items in the same order as they are provided in the information.) Round your answers to nearest cent, if required. Watt's Corporation Cash Balance Report Reconciled balance in First National Bank checking account 3,725.80 Cash balance reported on balance sheet 2. Describe the balance sheet treatment of the items not included in the cash balance. Classification Reconciled balance in First National Bank checking account ncluded in Cash Balance Reconciled balance in City National Bank checking account Current Liability Included in Cash Balance Prepaid Expense Receivable Short-term Investment Balance in First Federal savings account Certificate of deposit Employee's IOU Employees' travel advances Cash on hand (undeposited sales receipts) Prepaid debit card Customer's postdated check
Reconciled balance in First National Bank checking account $3,725.80 Reconciled balance in City National Bank checking account (40.20) Balance in First Federal savings account 34,291.00 Certificate of deposit 30,000.00 Employee's IOU 125.00 Employees' travel advances 1,640.00 Cash on hand (undeposited sales receipts) 1,432.10 Prepaid debit card 600.00 Customer's postdated check 290.40 Required: 1. What amount should be reported as cash on Watt's balance sheet? (Place the necessary items in the same order as they are provided in the information.) Round your answers to nearest cent, if required. Watt's Corporation Cash Balance Report Reconciled balance in First National Bank checking account 3,725.80 Cash balance reported on balance sheet 2. Describe the balance sheet treatment of the items not included in the cash balance. Classification Reconciled balance in First National Bank checking account ncluded in Cash Balance Reconciled balance in City National Bank checking account Current Liability Included in Cash Balance Prepaid Expense Receivable Short-term Investment Balance in First Federal savings account Certificate of deposit Employee's IOU Employees' travel advances Cash on hand (undeposited sales receipts) Prepaid debit card Customer's postdated check
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Reporting Cash on the Balance Sheet
Your audit of Watt Corporation discovers the following information:
Transcribed Image Text:Reconciled balance in First National Bank checking account
$3,725.80
Reconciled balance in City National Bank checking account
(40.20)
Balance in First Federal savings account
34,291.00
Certificate of deposit
30,000.00
Employee's IOU
125.00
Employees' travel advances
1,640.00
Cash on hand (undeposited sales receipts)
1,432.10
Prepaid debit card
600.00
Customer's postdated check
290.40
Required:
1. What amount should be reported as cash on Watt's balance sheet? (Place the necessary items in the same order as they are provided in the
information.) Round your answers to nearest cent, if required.
Watt's Corporation
Cash Balance Report
Reconciled balance in First National Bank checking account
3,725.80
Cash balance reported on balance sheet
2. Describe the balance sheet treatment of the items not included in the cash balance.
Classification
Reconciled balance in First National Bank checking account
ncluded in Cash Balance
Reconciled balance in City National Bank checking account
Current Liability
Included in Cash Balance
Prepaid Expense
Receivable
Short-term Investment
Balance in First Federal savings account
Certificate of deposit
Employee's IOU
Employees' travel advances
Cash on hand (undeposited sales receipts)
Prepaid debit card
Customer's postdated check
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