Answer
Cash balance is 700,900 computed as:
Checking account balance ……………………………………………700,000
Cash advance received from customer………………....…………….900
Total …………………………………………………………............…………700,900
Work Step by Step
Cash restricted for future plant expansion (500,000) should be classified as a noncurrent asset, while the short-term Treasury bills (180,000) should be classified as a temporary investment. On the other hand, cash advance received from a customer (900) should also be recognized as a liability. Cash advance (7,000) to company executive should be classified as a receivable; refundable deposit (26,000) paid to the federal government should be classified as a receivable.
