The controller of the Red Wing Corporation is in the process of preparing the company's 2018 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet.
The following items are being considered:
Assignment:
1.
Balance in checking account | 13,500 |
Balance in savings account | 22,100 |
Under deposited customer check | 5,200 |
Currency and coins on hand | 580 |
US treasury bills ; 2 months maturity | 15,000 |
Cash and cash equivalents | $56,380 |
2.
Savings account at the East Bay Bank with a balance of $400,000. This account is being used to accumulate cash for future plant expansion (in 2020) - classified as investment or non current asset
.
The balance in the account represents a 20% compensating balance for a $100,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2021 - classified as investment or non current asset
.
US treasury bills - 7 months maturity - Classified as current asset
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