Answer / Explanation:
(1) Cash balance of $937,790. Only the checking account balance should be reported as cash. The certificates of deposit of $1,444,000 should be reported as a temporary investment, the cash advance to subsidiary of $983,730 should be reported as a receivable, and the utility deposit of $188 should be identified as a receivable from the gas company.
(2) Cash balance is $584,650 computed as follows:
Checking account balance $514, 570
Overdraft (18,300)
Petty cash 308
Coin and currency 1,370
$534, 548
Cash held in a bond sinking fund is restricted. Assuming that the bonds are non current, the restricted cash is also reported as non current.
(3) Cash balance is $617, 620 computed as follows:
Checking account balance $617, 620
Certified check from customer 9, 640
$627, 260
The post dated check of $13,030 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.
(4) Checking account balance $46,220
Money market mutual fund 52, $790
$99, 010
The NSF check received from customer should be reported as a receivable.
(5) Cash balance is $700,900 computed as follows:
Checking account balance $716,200
Cash advance received from customer 937
$717, 137
Cash restricted for future plant expansion of $517,960 should be reported as a non current asset. Short-term treasury bills of $190,700 should be reported as a temporary investment. Cash advance received from customer of $937 should also be reported as a liability; cash advance of $7,840 to company executive should be reported as a receivable; refundable deposit of $29,700 paid to federal government should be reported as a receivable.
