Exercise 7-1 (Algo) Cash and cash equivalents; restricted cash; financial statement effects [LO7-2] 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 $14,900, savings $23,500 b. Undeposited customer checks of $6,600. c. Currency and coins on hand of $720. d. Savings account at the East Bay Bank with a balance of $540.000 This account is being used to accumulate cash for future plant expansion (in 2026) e. $36,000 in a checking account at the East Bay Bank The balance in the account represents a 15% compensating balance for a $240.000 losn wath the bank. Red Wing may not withdraw the funds until the loan is due in 2027. t U.S. Treasury bills; 2 -month maturity bilis totaling $29,000, and 7 -month bills totaling $34,000. Required: 1. 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. Determine the correct balance of cash and cash equivalents to be reported in the current asset tection of the 2024 balance theet. 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset sectic sheet. 2. For each of the items not included in your answer to requirement 1, select the correct classification of Complete this question by entering your answers in the tabs below. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 202 sheet. e. $36,000 in a checking account at the East Bay Bank. The balance in the account represents a 15% compensating balance ror d $240,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2027. f. U.S. Treasury bills; 2-month maturity bills totaling $29,000, and 7 -month bills totaling $34,000. quired: 1. 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. For each of the items not included in your answer to requirement 1 , select the correct classification of the item