The controller of the White Herring Corporation is in the process of preparing the company$$s year $1$ 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$$s accounts at the First National Bank; checking $$10,500,$ savings $$21,600.$

b$.$ Undeposited customer checks of $$5,200.$

c$.$ Currency and coins on hand of $$570.$

d$.$ Savings account at the East Bay Bank with a balance of $$390,000.$ This account is being used to accumulate cash for future plant expansion $($in

year $3).$

e$.$ $$40,000$ in a checking account at the East Bay Bank. The balance in the account represents a $20\%$ compensating balance for a $$200,000$ loan

with the bank. White Herring may not withdraw the funds until the loan is due in year $4.$

f$.$ U$.$S$.$ Treasury bills; $2-$month maturity bills totaling $$11,000,$ and $7-$month bills totaling $$20,000.$

Required:

$1.$ Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the year $1$ balance sheet.

$2.$ For each of the items not included in your answer to requirement $1,$ explain the correct classification of the item