Compute the amount of cash

Assignment Help Financial Accounting
Reference no: EM1312506

Compute the amount of cash to be reported in the Balance sheet.

The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2007, balance sheet. The following information is provided.
1. Commercial savings account of $600.000 and a commercial checking account balance of $900,000 are held at First National Bank of Yojimbo.
2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Eastwood 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 $190,000.
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. Eastwood has received a check that is dated January 12, 2008, in the amount of $125,000.
10. Eastwood has agreed to maintain a cash balance of $500,000 at all times at First national Bank of Yojimbo to ensure future credit availability.
11. Eastwood 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 to be reported on Eastwood Co.'s balance sheet at December 31, 2007.
b) Indicate the proper reporting for items that are not reported as cash on the December 31, 2007, balance sheet.

 

Reference no: EM1312506

Questions Cloud

Compute the best option of lease or buy : Compute the best option of lease or buy on the facts given - What is the minimal number of copies for which your law office should buy the machine instead of leasing it?
Draw on face of financial statements : Show Conclusions you draw on face of financial Statements - Cash flow statement analysis is a very important part of analyzing a company's overall financial health.
How far away did the shell hit : If air resistance & other effects are ignored how far away did the shell hit.
Confidence interval-means of the two populations : Salary information for a random sample of male and female employees of a large company is shown below.
Compute the amount of cash : Compute the amount of cash to be reported on Eastwood Co.'s balance sheet at December 31, 2007 and  Indicate the proper reporting for items that are not reported as cash on the December 31, 2007, balance sheet.
Journalising-posting and preparing trial balance : Shelton Engineering completed the following transactions in the month of June. Prepare a trial balance as of the end of this month's operations
What is the appropriate balance for the allowance : What is the appropriate balance for the Allowance for Doubtful Accounts at year-end? and Show how accounts receivable would be presented on the balance sheet.
Estimate the expected value : One state lottery has 1000 prizes of $1, 200 prizes of $5, 50 prizes of $25, 15 prizes of $150, 4 prizes of $500, and 1 prize of $2500.  What is the lottery expected profit per ticket?
Purpose the journal entry under basis : Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Purpose a classified balance sheet for simon company

Purpose a classified balance sheet for Simon Company at December 31, 2006 - prepare a classified balance sheet for Simon Company at December 31, 2006.

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Global reporting initiative

Determine your company performance in relation to GRI standards and comment on Stigler's theory.

  Labor efficiency variance and pass necessary comments

Purpose Direct materials Price Variance Efficiency varianceLabor rate variance Labor Efficiency Variance and pass necessary comments.

  Overall average cost - find the average cost

Find the average cost from the given data - Why do the costs per diner for the three different parties differ from each other and from the overall average cost of $15.00 per diner?

  Activities of insurance business

Show which of the above activities would be viewed as value-added in the eyes of Prince Insurance's Customers. Give reasons for your answer and explain the value and non value added in the activities of insurance business.

  Find the lowest transfer price

Calculation cost to make a product - Evaluate the lowest transfer price the Parts Division would accept for Product A?

  Determine the projects initial outlay

Determine the projects initial outlay and are the projects annual after tax cash flows for years 1-9?

  Low-volume product under activity-based costing

Describe why overhead cost shifted from the high-volume product to the low-volume product under activity-based costing.

  What are international financial reporting standards

What are International Financial Reporting Standards

  What is the forecasted addition to retained earnings

What is the forecasted addition to retained earnings for 2010? A budget is a formal written statement of management's strategies for the future expressed in financial terms. Evaluate the forecasted inventory balance have to be to achieve a Turn..

  Improvement of the existing communication system

Management contends that the device merely represents an improvement of the existing communication system of the satellite and so should be capitalized

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd