Exercise 7-2

Presented below are a number of independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $930,000; certificate of deposit $1,445,100; cash advance to subsidiary of $990,290; utility deposit paid to gas company $182.

Cash balance

$

2. Checking account balance $517,900; an overdraft in special checking account at same bank as normal checking account of $20,660; cash held in a bond sinking fund $249,100; petty cash fund $320; coins and currency on hand $1,480.

Cash balance

$

3. Checking account balance $618,800; postdated check from customer $10,620; cash restricted due to maintaining compensating balance requirement of $96,600; certified check from customer $10,494; postage stamps on hand $560.

Cash balance

$

4. Checking account balance at bank $39,980; money market balance at mutual fund (has checking privileges) $50,890; NSF check received from customer $748.

Cash balance

$

5. Checking account balance $739,100; cash restricted for future plant expansion $474,200; short-term Treasury bills $178,060; cash advance received from customer $932 (not included in checking account balance); cash advance of $6,930 to company executive, payable on demand; refundable deposit of $25,480 paid to federal government to guarantee performance on construction contract.

Cash balance

$