Kennison Company has cash in bank of $15,000, restricted cash in a separate account of $3,000, and a bank overdraft in an account at another bank of $1,000. Kennison should report cash of

Question

Quizplus · Accepted Answer

The cash balance of $15,000 should be reported on the balance sheet. Although there is restricted cash of $3,000, it is still considered as cash and should be reported together with the cash in bank. The bank overdraft of $1,000 should be reported as a current liability and not as a deduction from cash. Therefore, the total cash that Kennison Company should report is $15,000.

Kennison Company Has Cash in Bank of $15,000, Restricted Cash