What would be considered cash to calculate the cash


The controller for Cullumber Company is trying to determine the amount of cash to report on the December 31, 2017 statement of financial position. The following information is provided:

 

1. A commercial savings account with $618,600 and a commercial chequing account balance of $911,300 are held at First National Bank. There is also a bank overdraft of $33,900 in a chequing account at the Royal Scotia Bank. No other accounts are held at the Royal Scotia Bank.

2. Cullumber has agreed to maintain a cash balance of $98,400 at all times in its chequing account at First National Bank to ensure that credit is available in the future.

3. Cullumber has a $5.2-million investment in a Commercial Bank of Montreal money-market mutual fund. This fund has chequing account privileges.

4. There are travel advances of $16,500 for executive travel for the first quarter of next year. (employees will complete expense reports after they travel.)

5. A separate cash fund in the amount of $1.4 million is restricted for the retirement of long-term debt.

6. There is a petty cash fund of $3,100.

7. A $1,970 IOU from Marianne Koch, a company officer, will be withheld from her salary in January 2018.

8. There are 20 cash floats for retail operation cash registers: 8 at $460, and 12 at $560.

9. The company has two certificates of deposit, each for $534,800. These certificates of deposit each had a maturity of 120 days when they were acquired. One was purchased on October 15 and the other on December 27.

10. Cullumber has received a cheque dated January 12, 2018, in the amount of $22,300 from a customer owing funds at December 31. It has also received a cheque dated January 8, 2018, in the amount of $10,400 from a customer as an advance on an order that was placed on December 29 and will be delivered February 1, 2018.

11. Cullumber holds $2.1 million of commercial paper of Oriole Company which is due in 60 days.

12. Currency and coin on hand amounted to $7,010.

13. Cullumber acquired 930 shares of Sortel for $4.0 per share in late November and is holding them for trading. The shares are still on hand at year end and have a fair value of $4.2 per share on December 31, 2017.

What would be considered cash to calculate the cash available as at December 31?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: What would be considered cash to calculate the cash
Reference No:- TGS02605483

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)