Spring Company, Inc. had the following cash accounts at UnHappy State Bank: One account is restricted solely for the construction of a new plant in three years. • A second account is overdrawn by $18,000. The third account has a positive balance of $8,000 ● ● How should these accounts be reported in Spring's balance sheet? (CPA) O The restricted and regular accounts should be reported as current assets, and the overdraft should be reported as a current liability O The restricted account should be reported as a noncurrent asset, the overdraft should be reported as a current liability, and the regular account should be reported as a current asset O The restricted account and the regular account should be reported as a curient asset net of the overdraft O The restricted account should be reported as a noncurrent asset, and the regular account should be reported as a current asset net of the overdraft
Spring Company, Inc. had the following cash accounts at UnHappy State Bank: One account is restricted solely for the construction of a new plant in three years. • A second account is overdrawn by $18,000. The third account has a positive balance of $8,000 ● ● How should these accounts be reported in Spring's balance sheet? (CPA) O The restricted and regular accounts should be reported as current assets, and the overdraft should be reported as a current liability O The restricted account should be reported as a noncurrent asset, the overdraft should be reported as a current liability, and the regular account should be reported as a current asset O The restricted account and the regular account should be reported as a curient asset net of the overdraft O The restricted account should be reported as a noncurrent asset, and the regular account should be reported as a current asset net of the overdraft
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 2SEQ
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