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Date Submitted: 09/05/2011 05:00 AM

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E7-2 (Determine Cash Balance) 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 re

1. Checking account balance $925,000; certificate of deposit $1,400,000; cash advance to subsidiary of $9 The checking account balance of $925,000 must be reported like cash. Everything is else is not needed to 2. Checking account balance $600,000; an overdraft in special checking account at same bank as normal cash held in a bond sinking fund $200,000; petty cash fund $300; coins and currency on hand $1,350. All must be reported as cash except for the $200,000 cash held in a bond sinking fund. The $200,000 cas 3. Checking account balance $590,000; postdated check from customer $11,000; cash restricted due to m certified check from customer $9,800; postage stamps on hand $620. The checking account balance of $590,000 and the certified check from the customer of $9,800 must be re The postdated check would be considered a receivable, the restricted cash regarded as limited, and the po 4. Checking account balance at bank $37,000; money market balance at mutual fund (has checking privile The checking account balance at bank of $37,000 and the money market balance at mutual fund which ha 5. Checking account balance $700,000; cash limited for future plant growth $500,000; short-term Treasury cash advance received from client $900 (not incorporated in checking account balance); cash advance refundable deposit of $26,000 paid to federal government to asuure performance on construction contra The checking account balance of $700,000 and the cash advance received from the customer of $900 sho The restricted cash would be considered restricted/non-current, the treasury bills would be investments, an

If the item(s) is not reported as cash, explain the rationale.

nce to subsidiary of $980,000; utility deposit paid to gas company $180. s else is not needed to....