Presented below are a number of independent situations. For each individual situ

Question

Presented below are a number of independent situations.

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

3. Checking account balance $612,190; postdated check from a customer $11,750; cash restricted due to maintaining compensating balance requirement of $102,320; certified check from customer $9,640; postage stamps on hand $691.

4. Checking account balance at bank $44,840; money market balance at mutual fund (has checking privileges) $50,770; NSF check received from customer $880.

5. Checking account balance $718,390; cash restricted for future plant expansion $505,260; short-term Treasury bills $195,500; cash advance received from customer $904 (not included in checking account balance); cash advance of $7,930 to company executive, payable on demand; refundable deposit of $29,100 paid to federal government to guarantee performance on construction contract.

$

Explanation / Answer

            Checking account balance

$612190

            Certified check from customer

      9,640

$621830

            The postdated check of $11,750 should be reported as a receivable. Cash restricted due to compensating balance should be described in a note indicating the type of arrangement and amount. Postage stamps on hand are reported as part of office supplies inventory or prepaid expenses.

            Checking account balance

$44840

            Money market mutual fund

$50770

$95610

               The NSF check received from customer should be reported as a receivable.

5)         Cash balance is $719294 computed as follows:

            Checking account balance

$718390

            Cash advance received from customer

         904

$719294

            Cash restricted for future plant expansion of $505260 should be reported as a noncurrent asset. Short-term treasury bills of $195500 should be reported as a temporary investment. Cash advance received from customer of $900 should also be reported as a liability; cash advance of $7,930 to company executive should be reported as a receivable; refundable deposit of $29100 paid to federal government should be reported as a receivable.

            Checking account balance

$612190

            Certified check from customer

      9,640

$621830

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