Kennison Company has cash in bank of $10,000, 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

Kennison Company should report cash in bank of $10,000 and restrict cash in a separate account of $3,000, resulting in a total of $13,000. However, the bank overdraft in an account at another bank of $1,000 reduces the total amount of cash to $12,000 ($13,000 - $1,000 overdraft = $12,000). Therefore, the answer is B, $10,000.

Kennison Company Has Cash in Bank of $10,000, Restricted Cash