Lawrence Company has cash in bank of $15,000, restricted cash in a separate account of $4,000, and a bank overdraft in an account at another bank of $2,000.Lawrence should report cash of

Question

Quizplus · Accepted Answer

Cash in bank of $15,000 should be reported as cash on the balance sheet. Restricted cash is also considered cash and should be reported separately on the balance sheet, so it should not be included in the cash balance. The bank overdraft should be reported separately as a liability on the balance sheet, but it does not affect the cash balance. Therefore, the total cash reported would be $15,000.

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