Question

The following items were included as cash on the statement of financial position Lawton Company.

How should each of the items have been reported? Write your answer on the space after each item.

The lists of possible answers are as follows: Cash, Notes Receivable, Accounts Receivable, Advances to Employees, Office Supplies and Other Noncurrent Asset

Demand deposits with bank
Bank account used for payment of salaries and wages
Cash in special cash account to be used currently for the construction of a new building
Customers’ checks returned by the bank marked “No Sufficient Fund”
Customers’ post-dated checks
IOUs from employees
Postage stamps received in the mail for merchandise
Postal money orders received from customers and not yet deposited
Notes receivable in the hands of the bank for collection
Customer’s checks not yet deposited

Answer 1