Bonita has the following assets at December 31, 2017. Cash in bank—savings account 120,000 Certificates of deposit (270-day) 200,000 Cash on hand 1,200 Postdated checks 6,000 Cash refund due from State Taxing Authority 31,000 Checking account balance 10,000 What amount should be reported as cash?

$131,500          

Explanation:

The reason is that the saving account balance of $120,000 is easily convertible to cash within a seconds which means it must be included in the balance sheet.

Similarly the Cash in hand of $1,200 can be used at the instant so it must also be included in the cash balance in the balance sheet.

Checking account balance is also easily convertible to cash and must be included in the cash figure in the balance sheet by $10,000.

The certificate of deposit and the cash refund due from state taxing authority must not be included in the cash balance at the year end balance sheet because these are not readily convertible to cash in future.

So

Cash balance  = $120,000 + $1,200 + $10,000 = $131,500

answer; sensory adaptation;

answer90,000;