Exercise $7-1($Static$)$ Cash and cash equivalents; restricted cash; financial statement effects $[$LO$7-2]$

The controller of the Red Wing Corporation is in the process of preparing the company's $2024$ financial statements. She is trying to

determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items

are being considered:

a$.$ Balances in the company's accounts at the First National Bank, checking $$13,500,$ savings $$22,100.$

b$.$ Undeposited customer checks of $$5\mathrm{.}200.$

c$.$ Currency and coins on hand of $$580.$

d$.$ Savings account at the East Bay Bank with a balance of $$400,000.$ This account is being used to accumulate cash for future plant.

expansion $($in $2026).$

e$.$ $$20,000$ in a checking account at the East Bay Bank. The balance in the account represents a $20\%$ compensating balance for a

$$100,000$ losn with the bank. Red Wing may not withdraw the funds until the losn is due in $2027.$

f$.$ U$.$S$.$ Treasury bills; $2-$month maturity bills totaling $$15,000,$ and $7-$month bills totaling $$20,000.$

Requlred:

Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the $2024$ balance

sheet.

$2$ For each of the items not included in your answer to requirement $1,$ select the correct classification of the item.

Complete this question by entering your answers in the tabs below.

Required $1$

Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the $2024$ balance

sheet.

Requiret $2$

For each of the items not included in your answer to requirement $1,$ select the correct classification of the item.