Question

The controller for Blossom Co. is attempting to determine the amount of cash to be reported on its December 31, 2017, balance sheet. The following information is provided.

1.		Blossom received a post-dated check from a customer. The check is dated January 1, 2018, in the amount of $45,000.
2.		The company has a certificate of deposit of $118,000. The CD matures 120 days after its November 1, 2017 date of origination.
3.		Blossom Co. holds a commercial savings account of $402,000 and a commercial checking account balance of $1,200,000 at First National Bank of Alexander. In addition, a bank overdraft of $82,000 existed at year-end in a separate account that the company uses to deposit cash receipts at First National Bank of Alexander.
4.		A separate cash fund in the amount of $1,495,000 is set aside for the expansion of the company’s New Jersey factory.
5.		On December 21, 2017, Blossom Co. purchased $830,000 of commercial paper from Voight, Inc. The commercial paper matures January 14, 2018.
6.		Currency and coin on hand amounted to $10,486.
7.		A money market fund account held at Rogers, Inc. (a mutual fund organization) permits Blossom Co. to write checks on the full account balance, which was $935,000 at December 31, 2017.
8.		Blossom Co. has agreed to maintain a cash balance of $200,000 at all times at First National Bank of Alexander to ensure future credit availability.
9.		The balance in Blossom Co.’s petty cash fund is $400.
10.		During December 2017, Blossom Co. made travel advances to employees totaling $32,000 for executive travel that will occur during the first quarter of 2018. The employees will not reimburse the company for the advance, but are required to spend the funds on company-related travel and to submit receipts.
11.		The company received an I.O.U. from Stiller LLP, a company customer, on December 12, 2017, in the amount of $23,750.

(a)

Compute the amount of cash to be reported on Blossom Co.’s balance sheet at December 31, 2017.

Cash reported on December 31, 2017, balance sheet

$enter your answer in dollars

Answer 1

Cash includes the following items
S.No	Description for including as cash	Amount
3	Commercial savings account	$402,000
3	Commercial checking account	$1,200,000
5	Commercial papers from Voight Inc., are cash equivalents	$830,000
6	Currency and coin in hand	$10,486
7	Money market fund at Rogers inc	$935,000
9	Balance in Oriole pretty cash fund	$400
	Cash reported on December 31, 2017 balance sheet	$3,377,886
Reason for including the other items
S.No	Description for not considering as cash
1	Post date check should be reported as account receivable
2	certificate of deposit is reported as a temporary investment
3	Bank overdraft should be reported as a current liability
4	Cash set aside should be reported as a non-current asset
10	Travel advance should be reported as receivable
11	amount from IOU should be shown as account receivable