AC 302 CHAPTER 7 QUESTION 1

AC 302 CHAPTER 7 QUESTION 1
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E7-1 (Determining Cash Balance) The controller for Weinstein Co. is attempting to determine the amount of cash and cash equivalents to be reported on its December 31, 2012, balance sheet. The following information is provided.						
						
						
1. Commercial savings account has a balance of:				$600,000 	and a commercial checking	
account has a balance of		$800,000 	Both are held at First National Bank of Olathe.			
2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Weinstein to						
write checks on this balance,		$5,000,000 				
3. Travel advances for executive travel for the first quarter of the next year (employee to reimburse						
through salary reduction) are:		$180,000 				
4. A separate cash fund is restricted for the retirement of long-term debt. Its balance is						$1,500,000 
5. Petty cash fund of:		$1,000 				
6. An I.O.U. from Marianne Koch, a company customer, in the amount of						$150,000 
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. Weinstein has received a check that is dated January 12, 2013, in the amount of						$125,000 
10. Weinstein has agreed to maintain a cash balance of				$500,000 	at all times at First National	
Bank of Olathe to ensure future credit availability.						
11. Weinstein 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 Weinstein Co.- balance sheet at
     December 31, 2012."						
						
Cash for Weinstein includes the following:						
1. Commercial savings account at First National Bank of Olathe with a balance of:						Amount
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Cash reported on December 31, 2012, balance sheet:						Amount
						
"(b) Indicate the proper reporting for items that are not reported as cash on the December 31, 2012,
     balance sheet."						
						
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