Purpose: (L.O. 2) This exercise will require you to properly classify items qualifying as "cash" and to properly report a bank overdraft.
The Skogsberg Corporation had the following items at a balance sheet date:
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Checking account at Sun Trust Bank
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$ 12,400
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Checking account at Bank of America
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10,500
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Checking account at First Union Bank
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(3,000)
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Checking account at Republic Bank
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5,100
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Postdated check from customer
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600
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Savings account at Sun Trust Bank
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32,000
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Money market fund at Sun Trust (with checking privileges)
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40,000
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Deposit at telephone company (required for service)
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1,000
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NSF check received from customer (reflected as a positive amount in
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a bank balance above)
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210
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Change fund
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450
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Cash from customer not yet deposited in bank
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1,750
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Instructions:
(a) Compute the amount to be reported with the "Cash" caption in current assets at the balance sheet date.
(b) Indicate the proper reporting for items that are not included in your answer to part (a).