Olympian Inc. is preparing its current year financial statements. Its annual accounting period ends December $31.$ The following items a through i related to cash, are under consideration. Indicate how each item should be reported on a balance sheet as of December $31.$

a$.$ A $$900$ check received from a customer, dated February $1$ of next year, is held by Olympian. Answer

b$.$ A customer$$s check was included in the December $20$ deposit. It was returned by the bank stamped NSF $($non$-$sufficient funds$).$ Answer

No entry has yet been made by Olympian Inc. to reflect the return.

c$.$ A $6-$month, $$20,000$ CD $($certificate of deposit$)$ on which $$1,000$ of interest accrued as of December $31$ has just Answer

been recorded by debiting interest receivable and crediting interest revenue.

d$.$ Postage stamps that cost $$30$ are in the cash drawer. Answer

e$.$ A cashier$$s check of $$200$ payable to Olympian Inc. is in the cash drawer; it is dated December $29.$ Answer

f$.$ Three checks, dated December $31,$ totaling $$465,$ payable to vendors who have sold merchandise to Olympian Inc. on Answer

account, were not mailed or recorded as of December $31.$

g$.$ Olympian Inc. has a note receivable that matures December $31.$ The note is for $$20,000$ and bears interest at $9\%,$

having been outstanding for three months. The company plans to include the full amount of $$20,000$ plus interest

in its cash balance even though payment was not received until January $1$ of the following year.

$1.$ Value of the note $($$$20,000)$

Answer

$2.$ Interest related to note receivable

Answer

h$.$ The company has invested in a U$.$S$.$ Treasury bill, originating December $15$ and maturing February $1$ of the following year for $$2,500.$ Answer

i$.$ The company is legally required to maintain $$25,000$ at its bank as a compensating balance. Answer