Reference no: EM133034851
Question - The controller for Wildhorse Co. is trying to determine the amount of cash to report on the December 31, 2020 statement of financial position. The following information is provided:
1. A commercial savings account with $610,000 and a commercial chequing account balance of $820,000 are held at First National Bank. There is also a bank overdraft of $43,000 in a chequing account at the Royal Scotia Bank. No other accounts are held at the Royal Scotia Bank.
2. Wildhorse has agreed to maintain a cash balance of $107,000 at all times in its chequing account at First National Bank to ensure that credit is available in the future.
3. Wildhorse has a $5-million investment in a Commercial Bank of Montreal money-market mutual fund. This fund has chequing account privileges.
4. There are travel advances of $15,000 for executive travel for the first quarter of next year. (Employees will complete expense reports after they travel.).
5. A separate cash fund in the amount of $1.5 million is restricted for the retirement of long-term debt.
6. There is a petty cash fund of $2,800.
7. A $1,900 IOU from Marianne Koch, a company officer, will be withheld from her salary in January 2021.
8. There are 20 cash floats for retail operation cash registers: 8 at $500, and 12 at $600.
9. The company has two certificates of deposit, each for $490,000. These certificates of deposit each had a maturity of 120 days when they were acquired. One was purchased on October 15 and the other on December 27.
10. Wildhorse has received a cheque dated January 12, 2021, in the amount of $21,000 from a customer owing funds at December 31. It has also received a cheque dated January 8, 2021, in the amount of $12,000 from a customer as an advance on an order that was placed on December 29 and will be delivered February 1, 2021.
11. Wildhorse holds $1.8 million of commercial paper of Sandhill Co., which is due in 60 days.
12. Currency and coin on hand amounted to $7,300.
13. Wildhorse acquired 1,300 shares of Sortel for $3.80 per share in late November and is holding them for trading. The shares are still on hand at year end and have a fair value of $4.20 per share on December 31, 2020.
Required - Calculate the amount of cash to be reported on Wildhorse's statement of financial position at December 31, 2020.