Reporting Cash on the Balance Sheet Your audit of the Watt Corporation discovers the following information:
|
1. Reconciled balance in First National Bank checking account |
$2,360.75 |
|
2. Reconciled balance in City National Bank checking account |
40.2 |
|
3. Balance in First Federal savings account |
28,750.00 |
|
4. Certificate of deposit |
30,000.00 |
|
5. Postage stamps |
100 |
|
6. Employee’s IOU |
125 |
|
7. Employees’ travel advances |
1,640.00 |
|
8. Cash on hand (undeposited sales receipts) |
3,609.40 |
|
9. Traveler’s checks |
600 |
|
10. Customer’s postdated check |
290.4 |
Required
1. What amount should be reported as cash on Watt’s balance sheet?
2. Describe the balance sheet treatment of the items not included in the cash balance.