Question

Riverside Fertilizer Co. owns the following assets at the balance sheet date: Cash in the bank—savings account $ 8,000 Cash on hand 1,100 Cash refund due from the IRS 1,000 Checking account balance 12,000 Postdated checks 500

What amount should be reported as Cash in the balance sheet?

Answer 1

The correct answer is $21,100.

Step-by-step explanation:

According to the scenario, computation of the given data are as follows:

We can calculate the reported cash amount by using following formula:

Reported cash amount = Cash in bank + Cash on hand + Checking Account balance

Where,Cash in bank - savings account = $8,000

Cash on hand = $1,100

Checking Account balance = $12,000

So, Reported cash amount = $8,000 + $1,100 + $12,000

Reported cash amount = $21,100