I. The controller for Wallaby plc is attempting to determine the amount of cash and cash equivalents to be reported on its December 31, 2019, statement of financial position. The following information is provided.

1. Commercial savings account of 600,000 and a commercial checking account balance of 800,000 are held at First National Bank of Olathe.

2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Wallaby to write checks on this balance, 5,000,000.

3. Travel advances of 180,000 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).

4. A separate cash fund in the amount of 1,500,000 is restricted for the retirement of long-term debt.

5. Petty cash fund of 1,000. 6. An I.O.U. from Marianne Koch, a company customer, in the amount of 150,000.

7. A bank overdraft of 110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank.

8. The company has two certificates of deposit, each totaling 500,000. These CDs have a maturity of 120 days.

9. Wallaby has received a check that is dated January 12, 2020, in the amount of 125,000.

10. Wallaby has agreed to maintain a cash balance of 500,000 at all times at First National Bank of Olathe to ensure future credit availability.

11. Wallaby has purchased 2,100,000 of commercial paper of Sergio Leone Co. which is due in 60 days.

12. Currency and coin on hand amounted to 7,700.

Instructions

a. Compute the amount of cash (and cash equivalents) to be reported on Wallaby plc's statement of financial position at December 31, 2019.

b. Indicate the proper reporting for items that are not reported as cash on the December 31, 2019, statement of financial position.

II. Presented below are a number of independent situations.

Instructions

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 $925,000; certificate of deposit $1,400,000; cash advance to subsidiary of $980,000; utility deposit paid to gas company $180.

2. Checking account balance $500,000; an overdraft in special checking account at same bank as normal checking account of $17,000; cash held in a bond sinking fund $200,000; petty cash fund $300; coins and currency on hand $1,350.

3. Checking account balance $590,000; postdated check from customer $11,000; cash restricted due to maintaining compensating balance requirement of $100,000; certified check from customer $9,800; postage stamps on hand $620.

4. Checking account balance at bank $42,000; money market balance at mutual fund (has checking privileges) $48,000; NSF check received from customer $800.

5. Checking account balance $700,000; cash restricted for future plant expansion $500,000; short-term Treasury bills $180,000; cash advance received from customer $900 (not included in checking account balance); cash advance of $7,000 to company executive, payable on demand; refundable deposit of $26,000 paid to the government to guarantee performance on construction contract.

III. The petty cash fund of Teasdale's Auto Repair Service, a sole proprietorship, contains the following.

1. Coins and currency		$ 10.20
2. Postage stamps		7.90
3. An I.O.U. from Richie Cunningham, an employee, for cash advance		40.00
4. Check payable to Teasdale's Auto Repair from Pottsie Weber, an employee, marked NSF		34.00
5. Vouchers for the following:
Stamps	$ 20.00
Two Premier Cup tickets for Nick Teasdale	170.00
Printer cleaning	14.35	204.35
		$296.45

The general ledger account Petty Cash has a balance of $300.

Instructions

Prepare the journal entry to record the reimbursement of the petty cash fund.

IV.Kipling plc deposits all receipts and makes all payments by check. The following information is available from the cash records.

June 30 Bank Reconciliation
Balance per bank	7,000
Add: Deposits in transit	1,540
Deduct: Outstanding checks	2,000
Balance per books	6,540

Month of July Results

	Per Bank	Per Books
Balance July 31	8,650	9,250
July deposits	4,500	5,810
July checks	4,000	3,100
July note collected (not included in July deposits)	1,500
July bank service charge	15
July NSF check from a customer, returned by the bank (recorded by bank as a charge)	335

Instructions

a. Prepare a bank reconciliation going from balance per bank and balance per book to correct the cash balance.

b. Prepare the general journal entry or entries to correct the Cash account.

V. Aragon Company has just received the August 31, 2019, bank statement, which is summarized below.

County National Bank	Disbursements	Receipts	Balance
Balance, August 1			$ 9,369
Deposits during August		$32,200	41,569
Note collected for depositor, including $40 interest		1,040	42,609
Checks cleared during August	$34,500		8,109
Bank service charges	20		8,089
Balance, August 31			8,089

The general ledger Cash account contained the following entries for the month of August.

Cash
Balance, August 1	10,050	Disbursements in August	35,403
Receipts during August	35,000

Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.

Instructions

a. Prepare a bank reconciliation dated August 31, 2019, proceeding to a correct balance.

b. Prepare any entries necessary to make the books correct and complete.

c. What amount of cash should be reported in the August 31 statement of financial position?