E6.1 (LO1) Determining Cash Balance
The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be
reported on its December 31, 2025, balance sheet. The following information is provided.
1. Commercial savings account held at First National Bank of Yojimbo $ 600,000
Commercial checking account balance held at First National Bank of
Yojimbo 900,000
2. Money market fund account held at Volonte Co. (a mutual fund 5,000,000
organization) permits Eastwood to write checks on this balance
3. Travel advances for executive travel for the first quarter of next year 180,000
(employee to reimburse through salary reduction)
4. A separate cash fund restricted for the retirement of long-term debt 1,500,000
5. Petty cash fund 1,000
6. An I.O.U. from Marianne Koch, a company customer 190,000
7. A bank overdraft at one of the banks the company uses to deposit its 110,000
cash receipts. At the present time, the company has no deposits at
this bank.
8. The company has two certificates of deposit, each totaling $500,000. 500,000
These CDs have a maturity of 120 days
9. Eastwood received a check that is dated January 12, 2026 125,000
10. Eastwood has agreed to maintain a cash balance of $500,000 at all 500,000
times at First National Bank of Yojimbo to ensure future credit
availability.
11. Eastwood has purchased commercial paper of Sergio Leone Co. which 2,100,000
is due in 60 days.
12. Currency and coin on hand 7,700
, Instructions
a. Compute the amount of cash to be reported on Eastwood Co.’s balance sheet at December
31, 2025.
b. Indicate the proper reporting for items that are not reported as cash on the December 31,
2025, balance sheet.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
a. Cash includes the following:
No. Item description Amount
b. No. Item description and correct reporting
The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be
reported on its December 31, 2025, balance sheet. The following information is provided.
1. Commercial savings account held at First National Bank of Yojimbo $ 600,000
Commercial checking account balance held at First National Bank of
Yojimbo 900,000
2. Money market fund account held at Volonte Co. (a mutual fund 5,000,000
organization) permits Eastwood to write checks on this balance
3. Travel advances for executive travel for the first quarter of next year 180,000
(employee to reimburse through salary reduction)
4. A separate cash fund restricted for the retirement of long-term debt 1,500,000
5. Petty cash fund 1,000
6. An I.O.U. from Marianne Koch, a company customer 190,000
7. A bank overdraft at one of the banks the company uses to deposit its 110,000
cash receipts. At the present time, the company has no deposits at
this bank.
8. The company has two certificates of deposit, each totaling $500,000. 500,000
These CDs have a maturity of 120 days
9. Eastwood received a check that is dated January 12, 2026 125,000
10. Eastwood has agreed to maintain a cash balance of $500,000 at all 500,000
times at First National Bank of Yojimbo to ensure future credit
availability.
11. Eastwood has purchased commercial paper of Sergio Leone Co. which 2,100,000
is due in 60 days.
12. Currency and coin on hand 7,700
, Instructions
a. Compute the amount of cash to be reported on Eastwood Co.’s balance sheet at December
31, 2025.
b. Indicate the proper reporting for items that are not reported as cash on the December 31,
2025, balance sheet.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
a. Cash includes the following:
No. Item description Amount
b. No. Item description and correct reporting
