how should these accounts be reported in dingo rsquo s october 31 2006 classified ba 604379

On October 31, 2006, Dingo, Inc. had cash accounts at three different banks. One account balance is segregated solely for a November 15, 2006 payment into a bond sinking fund. A second account, used for branch operations, is overdrawn. The third account, used for regular corporate operations, has a positive balance. How should these accounts be reported in Dingo’s October 31, 2006 classified balance sheet?

1. The segregated account should be reported as a noncurrent asset, the regular account should be reported as a current asset, and the overdraft should be reported as a current liability.
2. The segregated and regular accounts should be reported as current assets, and the overdraft should be reported as a current liability.
3. The segregated account should be reported as a noncurrent asset, and the regular account should be reported as a current asset net of the overdraft.
4. The segregated and regular accounts should be reported as current assets net of the overdraft.