The controller of the Red Wing Corporation is in the process of preparing the company's 2024 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items are being considered: a. Balances in the company's accounts at the First National Bank; checking $14,100, savings $22,700. b. Undeposited customer checks of $5,800. c. Currency and coins on hand of $640. d. Savings account at the East Bay Bank with a balance of $460,000. This account is being used to accumulate cash for future plant expansion (in 2026). e. $24,000 in a checking account at the East Bay Bank. The balance in the account represents a 15% compensating balance for a $160,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2027. f. U.S. Treasury bills; 2-month maturity bills totaling $21,000, and 7-month bills totaling $26,000. Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. 2. For each of the items not included in your answer to requirement 1, select the correct classification of the item. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. Cash and cash equivalents includes: Total $ 0 < Required 1 Required 2 >
The controller of the Red Wing Corporation is in the process of preparing the company's 2024 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items are being considered: a. Balances in the company's accounts at the First National Bank; checking $14,100, savings $22,700. b. Undeposited customer checks of $5,800. c. Currency and coins on hand of $640. d. Savings account at the East Bay Bank with a balance of $460,000. This account is being used to accumulate cash for future plant expansion (in 2026). e. $24,000 in a checking account at the East Bay Bank. The balance in the account represents a 15% compensating balance for a $160,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2027. f. U.S. Treasury bills; 2-month maturity bills totaling $21,000, and 7-month bills totaling $26,000. Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. 2. For each of the items not included in your answer to requirement 1, select the correct classification of the item. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. Cash and cash equivalents includes: Total $ 0 < Required 1 Required 2 >
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter7: Introduction To Financial Statement Analysis
Section: Chapter Questions
Problem 31P
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![Exercise 7-1 (Algo) Cash and cash equivalents; restricted cash; financial statement effects [LO7-2]
The controller of the Red Wing Corporation is in the process of preparing the company's 2024 financial statements. She is trying to
determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items
are being considered:
a. Balances in the company's accounts at the First National Bank; checking $14,100, savings $22,700.
b. Undeposited customer checks of $5,800.
c. Currency and coins on hand of $640.
d. Savings account at the East Bay Bank with a balance of $460,000. This account is being used to accumulate cash for future plant
expansion (in 2026).
e. $24,000 in a checking account at the East Bay Bank. The balance in the account represents a 15% compensating balance for a
$160,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2027.
f. U.S. Treasury bills; 2-month maturity bills totaling $21,000, and 7-month bills totaling $26,000.
Required:
1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance
sheet.
2. For each of the items not included in your answer to requirement 1, select the correct classification of the item.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance
sheet.
Cash and cash equivalents includes:
Total
$
0
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b456879-5ca5-4c7b-a8f8-536394932aae%2F893e3601-73ed-4999-b1bb-fdbd5d41f926%2Fbfzsjup_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 7-1 (Algo) Cash and cash equivalents; restricted cash; financial statement effects [LO7-2]
The controller of the Red Wing Corporation is in the process of preparing the company's 2024 financial statements. She is trying to
determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items
are being considered:
a. Balances in the company's accounts at the First National Bank; checking $14,100, savings $22,700.
b. Undeposited customer checks of $5,800.
c. Currency and coins on hand of $640.
d. Savings account at the East Bay Bank with a balance of $460,000. This account is being used to accumulate cash for future plant
expansion (in 2026).
e. $24,000 in a checking account at the East Bay Bank. The balance in the account represents a 15% compensating balance for a
$160,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2027.
f. U.S. Treasury bills; 2-month maturity bills totaling $21,000, and 7-month bills totaling $26,000.
Required:
1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance
sheet.
2. For each of the items not included in your answer to requirement 1, select the correct classification of the item.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance
sheet.
Cash and cash equivalents includes:
Total
$
0
< Required 1
Required 2 >
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