Problem 1

Determine the correct balance in J & Js cash account.

Cash balance per J & J Balance Sheet

Money market savings account $100,000

Certificate of deposit maturing on January 15th, 2016 $150,000

Cash held in the bank as compensating balance for a note due

March, 2017 $200,000

Note due from customer Jan. 1, 2016 $90,000

Certificate of deposit maturing on May 1st, 2016 $300,450

Outstanding deposits (from the bank reconciliation) $ 80,500

Post-dated check $115,000