Reporting Cash on the Balance SheetYour audit of Watt Corporation discovers the following information: Reconciled balance in First National Bank checking account$3,625.80Reconciled balance in City National Bank checking account(40.20)Balance in First Federal savings account35,291.00Certificate of deposit30,000.00Employee's IOU125.00Employees' travel advances1,640.00Cash on hand (undeposited sales receipts)1,432.10Prepaid debit card600.00Customer's postdated check290.40What amount should be reported as cash on Watt's balance sheet? (Place the necessary items in the same order as they are provided in the information.) Round your answers to nearest cent, if required.

Answered: Reporting Cash on the Balance Sheet…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 2E

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Reporting Cash on the Balance Sheet
Your audit of Watt Corporation discovers the following information:

Reconciled balance in First National Bank checking account	$3,625.80
Reconciled balance in City National Bank checking account	(40.20)
Balance in First Federal savings account	35,291.00
Certificate of deposit	30,000.00
Employee's IOU	125.00
Employees' travel advances	1,640.00
Cash on hand (undeposited sales receipts)	1,432.10
Prepaid debit card	600.00
Customer's postdated check	290.40

What amount should be reported as cash on Watt's balance sheet? (Place the necessary items in the same order as they are provided in the information.) Round your answers to nearest cent, if required.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Step 1 Introduction

Balance sheet:- Balance sheet is referred as the financial statement which helps to determine the financial position of the business. Balance sheet displays company’s total assets, liabilities and owner’s equity on particular date. It is also knows as statement f net worth or a statement of financial position.

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