Question

The controller for Sandhill Co. is trying to determine the amount of cash to report on the December 31, 2020 statement of financial position. The following information is provided:

1.		A commercial savings account with $660,000 and a commercial chequing account balance of $910,000 are held at First National Bank. There is also a bank overdraft of $37,000 in a chequing account at the Royal Scotia Bank. No other accounts are held at the Royal Scotia Bank.
2.		Sandhill has agreed to maintain a cash balance of $110,000 at all times in its chequing account at First National Bank to ensure that credit is available in the future.
3.		Sandhill has a $6-million investment in a Commercial Bank of Montreal money-market mutual fund. This fund has chequing account privileges.
4.		There are travel advances of $22,000 for executive travel for the first quarter of next year. (Employees will complete expense reports after they travel.)
5.		A separate cash fund in the amount of $1.0 million is restricted for the retirement of long-term debt.
6.		There is a petty cash fund of $2,700.
7.		A $1,600 IOU from Marianne Koch, a company officer, will be withheld from her salary in January 2021.
8.		There are 20 cash floats for retail operation cash registers: 8 at $460, and 12 at $610.
9.		The company has two certificates of deposit, each for $470,000. These certificates of deposit each had a maturity of 120 days when they were acquired. One was purchased on October 15 and the other on December 27.
10.		Sandhill has received a cheque dated January 12, 2021, in the amount of $22,000 from a customer owing funds at December 31. It has also received a cheque dated January 8, 2021, in the amount of $11,000 from a customer as an advance on an order that was placed on December 29 and will be delivered February 1, 2021.
11.		Sandhill holds $2.0 million of commercial paper of Carla Vista Co., which is due in 60 days.
12.		Currency and coin on hand amounted to $7,900.
13.		Sandhill acquired 1,100 shares of Sortel for $3.80 per share in late November and is holding them for trading. The shares are still on hand at year end and have a fair value of $4.20 per share on December 31, 2020.

(a)

Calculate the amount of cash to be reported on Sandhill’s statement of financial position at December 31, 2020.

Answer 1

Answer (9) calculate the amount of cash to be page-01 Sandhill's statement of financial position of dec 31,2020 deported on commercial savings account - first national bank =#660000 (3) commercial chequing account - first national bank =$910000 (3) money market fund - commercial Bank of montreal = $6000000 16) $ 2700 (8) cash floats $11000 (46088)+(12x610) (12) currency and win on hand C$660000 + $910000+ $6000000 442700 +$16000 %) = $ 7591600 cash reported on december 31, 2020 balance sheet = $ 7591600 Prelty cash $7900 +17900) =