The controller for Clint Whispering Co. is attempting to determine the amount of cash to be reported on its December 31, 2020, balance sheet. The following information is provided. 1. Commercial savings account of $633,900 and a commercial checking account balance of $840,800 are held at First National Bank of Yojimbo. 2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Whispering to write checks on this balance, $5,068,600. 3. Travel advances of $184,300 for executive travel for the first quarter of next year (employee to reimburse through salary reduction). 4. A separate cash fund in the amount of $1,504,300 is restricted for the retirement of long-term debt. 5. Petty cash fund of $1,320. 6. An I.O.U. from Marianne Koch, a company customer, in the amount of $158,700. 7. A bank overdraft of $117,400 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. 8. The company has two certificates of deposit, each totaling $634,300. These CDs have a maturity of 120 days. 9. Whispering has received a check that is dated January 12, 2021, in the amount of $121,210. 10. Whispering has agreed to maintain a cash balance of $528,600 at all times at First National Bank of Yojimbo to ensure future credit availability. 11. Whispering has purchased $1,976,800 of commercial paper of Sergio Leone Co. which is due in 60 days. 12. Currency and coin on hand amounted to $7,759. (a) Compute the amount of cash and cash equivalents to be reported on Whispering Co.’s balance sheet at December 31, 2020.
The controller for Clint Whispering Co. is attempting to determine the amount of cash to be reported on its December 31, 2020, balance sheet. The following information is provided. 1. Commercial savings account of $633,900 and a commercial checking account balance of $840,800 are held at First National Bank of Yojimbo. 2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Whispering to write checks on this balance, $5,068,600. 3. Travel advances of $184,300 for executive travel for the first quarter of next year (employee to reimburse through salary reduction). 4. A separate cash fund in the amount of $1,504,300 is restricted for the retirement of long-term debt. 5. Petty cash fund of $1,320. 6. An I.O.U. from Marianne Koch, a company customer, in the amount of $158,700. 7. A bank overdraft of $117,400 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. 8. The company has two certificates of deposit, each totaling $634,300. These CDs have a maturity of 120 days. 9. Whispering has received a check that is dated January 12, 2021, in the amount of $121,210. 10. Whispering has agreed to maintain a cash balance of $528,600 at all times at First National Bank of Yojimbo to ensure future credit availability. 11. Whispering has purchased $1,976,800 of commercial paper of Sergio Leone Co. which is due in 60 days. 12. Currency and coin on hand amounted to $7,759. (a) Compute the amount of cash and cash equivalents to be reported on Whispering Co.’s balance sheet at December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The controller for Clint Whispering Co. is attempting to determine the amount of cash to be reported on its December 31, 2020,
1. | Commercial savings account of $633,900 and a commercial checking account balance of $840,800 are held at First National Bank of Yojimbo. | |
2. | ||
3. | Travel advances of $184,300 for executive travel for the first quarter of next year (employee to reimburse through salary reduction). | |
4. | A separate cash fund in the amount of $1,504,300 is restricted for the retirement of long-term debt. | |
5. | Petty cash fund of $1,320. | |
6. | An I.O.U. from Marianne Koch, a company customer, in the amount of $158,700. | |
7. | A bank overdraft of $117,400 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. | |
8. | The company has two certificates of deposit, each totaling $634,300. These CDs have a maturity of 120 days. | |
9. | Whispering has received a check that is dated January 12, 2021, in the amount of $121,210. | |
10. | Whispering has agreed to maintain a cash balance of $528,600 at all times at First National Bank of Yojimbo to ensure future credit availability. | |
11. | Whispering has purchased $1,976,800 of commercial paper of Sergio Leone Co. which is due in 60 days. | |
12. | Currency and coin on hand amounted to $7,759. |
(a) Compute the amount of cash and cash equivalents to be reported on Whispering Co.’s balance sheet at December 31, 2020.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education