Reference no: EM13582090

For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as cash, explain the rationale.

1. Checking account balance $111,000; savings account balance $212,000; cash advance to subsidiary of $500,000; utility deposit paid to electric company $100.

2. Checking account balance $111,000; an overdraft in special checking account at same bank as normal checking account of $5,000; cash held in a bond sinking fund $1,200,000; petty cash fund $500; certified check from customer $1,500.

3. Checking account balance $205,000; postdated check from customer $10,000; cash restricted due to maintaining compensating balance requirement of $100,000; postage stamps on hand $123. cash advance of $5,000 to company executive, payable on demand.

4. Checking account balance at bank $61,000; money market balance at mutual fund (has checking privileges) $275,000; NSF check received from customer $1,600.

5. Checking account balance $171,000; cash restricted for future plant expansion $1,200,000; shortterm Treasury bills $200,000; cash advance received from customer $900 (not included in checking account balance); refundable deposit of $50,000 paid to federal government to guarantee performance on construction contract.