The following are independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $777,000; certificate of deposit $1.176.000; cash advance to subsidiary of $823,200 utility deposit paid to gas company $152. Cash balance $ 2. Checking account balance $504,000; an overdraft in special checking account at same bank as normal checking account of $14,280; cash held in a bond sinking fund $168,000; petty cash fund $252: coins and currency on hand $1,134. Cash balance S Cash balance $ 1953000 3. Checking account balance $495,600; postdated check from customer $9,240; cash restricted due to maintaining compensating balance requirement of $84,000; certified check from customer $8,232: postage stamps on hand $520. Cash balance S 505386 4. Checking account balance at bank $31,080; money market balance at mutual fund (has checking privileges) $40,320; NSF check received from customer $672. Cash balance 504352 71400 5. Checking account balance $588,000; cash restricted for future plant expansion $420,000; short-term Treasury bills $151,200 (which mature in 6 months); cash advance received from customer $756 (not included in checking account balance): cash advance of $5,880 to company executive, payable on demand; refundable deposit of $21.840 paid to federal government to guarantee performance on construction contract. 739200
The following are independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $777,000; certificate of deposit $1.176.000; cash advance to subsidiary of $823,200 utility deposit paid to gas company $152. Cash balance $ 2. Checking account balance $504,000; an overdraft in special checking account at same bank as normal checking account of $14,280; cash held in a bond sinking fund $168,000; petty cash fund $252: coins and currency on hand $1,134. Cash balance S Cash balance $ 1953000 3. Checking account balance $495,600; postdated check from customer $9,240; cash restricted due to maintaining compensating balance requirement of $84,000; certified check from customer $8,232: postage stamps on hand $520. Cash balance S 505386 4. Checking account balance at bank $31,080; money market balance at mutual fund (has checking privileges) $40,320; NSF check received from customer $672. Cash balance 504352 71400 5. Checking account balance $588,000; cash restricted for future plant expansion $420,000; short-term Treasury bills $151,200 (which mature in 6 months); cash advance received from customer $756 (not included in checking account balance): cash advance of $5,880 to company executive, payable on demand; refundable deposit of $21.840 paid to federal government to guarantee performance on construction contract. 739200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a8
Transcribed Image Text:The following are independent situations.
For each individual situation, determine the amount that should be reported as cash.
1. Checking account balance $777,000; certificate of deposit $1.176.000; cash advance to subsidiary of $823,200
utility deposit paid to gas company $152.
Cash balance
2. Checking account balance $504,000, an overdraft in special checking account at same bank as normal checking
account of $14.280; cash held in a bond sinking fund $168,000; petty cash fund $252: coins and currency on hand
$1,134.
Cash balance
Cash balance S
1953000
3. Checking account balance $495,600; postdated check from customer $9,240; cash restricted due to maintaining
compensating balance requirement of $84,000; certified check from customer $8,232: postage stamps on hand $520.
Cash balance S
505386
4. Checking account balance at bank $31,080; money market balance at mutual fund (has checking privileges) $40,320;
NSF check received from customer $672.
Cash balance
504352
71400
5. Checking account balance $588,000: cash restricted for future plant expansion $420,000; short-term Treasury bills
$151,200 (which mature in 6 months); cash advance received from customer $756 (not included in checking account
balance): cash advance of $5,880 to company executive, payable on demand: refundable deposit of $21.840 paid to
federal government to guarantee performance on construction contract.
739200
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