Cash
Problem 1
Determine the correct balance in J & J's cash account.
Cash balance per J & J Balance Sheet
Money market savings account $100,000
Certificate of deposit maturing on January 15th, 2016 $150,000
Cash held in the bank as compensating balance for a note due
March, 2017 $200,000
Note due from customer Jan. 1, 2016 $90,000
Certificate of deposit maturing on May 1st, 2016 $300,450
Outstanding deposits (from the bank reconciliation) $ 80,500
Post-dated check $115,000
Problem 2
Using the following format: (use the accounts/classification given in the J & J. statements
Amount Account increase (decrease)
Refer to problem 1, give the effect for each item that should not be part of the cash account, ie. if an item is to be reclassify, specify the amount, the account and if it increases or decreases the account.