RSM220H1 Chapter 7: Chapter 7 Self Study Exercises.docx
Document Summary
Exercise 7-1 (10-15 minutes: money market fund commercial bank of. Cash includes the following: commercial savings account . 6: cash floats (8 x + 12 x , currency and coin on hand. Cash reported on december 31, 2014, balance sheet. The bank overdraft at the royal scotia bank of ,000. 1. should be reported as a current liability as there are is no available cash in another account at royal scotia bank available for offset. The balance (at first national bank of ,000) 2. requirement does not affect the balance in cash. A note disclosure indicating the arrangement and the amounts involved should be described in the notes. Travel advances (to be reimbursed by employees) should be reported as prepaid travel in the amount of ,000. Cash restricted in the amount of ,500,000 for the retirement of long-term debt should be reported as a noncurrent asset identified as.
