Question

Presented below are independent situations.

For each individual situation, determine the amount that should be reported as cash.

1. Checking account balance $1,073,000; certificate of deposit $1,624,000; cash advance to subsidiary of $1,136,800; utility deposit paid to gas company $216.

Cash balance

$enter Cash balance in dollars

2. Checking account balance $696,000; an overdraft in special checking account at same bank as normal checking account of $19,720; cash held in a bond sinking fund $232,000; petty cash fund $348; coins and currency on hand $1,566.

Cash balance

$enter Cash balance in dollars

3. Checking account balance $684,400; postdated check from customer $12,760; cash restricted due to maintaining compensating balance requirement of $116,000; certified check from customer $11,368; postage stamps on hand $712.

Cash balance

$enter Cash balance in dollars

4. Checking account balance at bank $42,920; money market balance at mutual fund (has checking privileges) $55,680; NSF check received from customer $928.

Cash balance

$enter Cash balance in dollars

5. Checking account balance $812,000; cash restricted for future plant expansion $580,000; short-term Treasury bills $208,800 (which mature in 6 months); cash advance received from customer $1,044 (not included in checking account balance); cash advance of $8,120 to company executive, payable on demand; refundable deposit of $30,160 paid to federal government to guarantee performance on construction contract.

Cash balance

$enter Cash balance in dollars

Answer 1

1)
Particulars	Amount (in $ )
Checking account balance	$ 1,073,000
Cash Balance	$ 1,073,000
2)
Particulars	Amount (in $ )
Checking account balance	$ 696,000
Add: Petty cash fund	$ 348
Add: Coins and currency on hand	$ 1,566
Less: Overdraft in special checking account	($ 19,720)
Cash Balance	$ 678,194
3)
Particulars	Amount (in $ )
Checking account balance	$ 684,400
Add: Certified check from customer	$ 11,368
Cash Balance	$ 695,768
4)
Particulars	Amount (in $ )
Checking account balance	$ 42,920
Add: Money Market Balance at Mutual Fund	$ 55,680
Cash Balance	$ 98,600
5)
Particulars	Amount (in $ )
Checking Account Balance	$ 812,000
Add: Cash advance received from Customer	$ 1,044
Cash Balance	$ 813,044