Question

The controller for Crane Co. is attempting to determine the amount of cash to be reported on its December 31, 2017, balance sheet. The following information is provided.

1.		Crane received a post-dated check from a customer. The check is dated January 1, 2018, in the amount of $45,000.
2.		The company has a certificate of deposit of $120,000. The CD matures 120 days after its November 1, 2017 date of origination.
3.		Crane Co. holds a commercial savings account of $429,000 and a commercial checking account balance of $1,000,000 at First National Bank of Alexander. In addition, a bank overdraft of $88,000 existed at year-end in a separate account that the company uses to deposit cash receipts at First National Bank of Alexander.
4.		A separate cash fund in the amount of $1,525,000 is set aside for the expansion of the company’s New Jersey factory.
5.		On December 21, 2017, Crane Co. purchased $880,000 of commercial paper from Voight, Inc. The commercial paper matures January 14, 2018.
6.		Currency and coin on hand amounted to $10,926.
7.		A money market fund account held at Rogers, Inc. (a mutual fund organization) permits Crane Co. to write checks on the full account balance, which was $940,000 at December 31, 2017.
8.		Crane Co. has agreed to maintain a cash balance of $210,000 at all times at First National Bank of Alexander to ensure future credit availability.
9.		The balance in Crane Co.’s petty cash fund is $400.
10.		During December 2017, Crane Co. made travel advances to employees totaling $28,000 for executive travel that will occur during the first quarter of 2018. The employees will not reimburse the company for the advance, but are required to spend the funds on company-related travel and to submit receipts.
11.		The company received an I.O.U. from Stiller LLP, a company customer, on December 12, 2017, in the amount of $15,000.

(a)

Compute the amount of cash and cash equivalents to be reported on Crane Co.’s balance sheet at December 31, 2017.

Cash and cash equivalents reported on December 31, 2017, balance sheet

Answer 1

Answer:
1)
Particulars	Amount (in $ )
Commercial Savings account - First National Bank of Alexander	$ 429,000
Commercial Checking account - First National Bank of Alexander	$ 1,000,000
Bank overdraft	($ 88,000)
Money market fund account held at Rogers, inc	$ 940,000
Petty Cash fund	$ 400
Commercial paper from Voight Co.	$ 880,000
Currency and coin on hand	$ 10,926
The amount of Cash and Cash Equivalents reported on December 31, 2017 B/S	$ 3,172,326