E7-2 Determine cash balance
Presented below are a number of independent situations.
For each individual situation, determine the amount that should be reported as cash.
1. Checking account balance $943,570; certificate of deposit $1,408,800; cash advance to subsidiary of $982,960; utility deposit paid to gas company $195.
2. Checking account balance $502,890; an overdraft in special checking account at same bank as normal checking account of $18,000; cash held in a bond sinking fund $216,550; petty cash fund $353; coins and currency on hand $1,490.
3. Checking account balance $621,060; postdated check from customer $12,190; cash restricted due to maintaining compensating balance requirement of $104,100; certified check from customer $9,560; postage stamps on hand $654.
4. Checking account balance at bank $42,490; money market balance at mutual fund (has checking privileges) $49,400; NSF check received from customer $810.
5. Checking account balance $706,750; cash restricted for future plant expansion $504,890; short-term Treasury bills $183,800; cash advance received from customer $984 (not included in checking account balance); cash advance of $8,050 to company executive, payable on demand; refundable deposit of $30,900 paid to federal government to guarantee performance on construction contract.