Cash account on the balance sheet is composed of the following

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1)

Cash account on the balance sheet is composed of the following:

Checking Account=$324,935

Money Market Savings Account =$100000

Certificate of Deposit, 2% maturing on May 1^st 2013=$25,000

Certificate of Deposit, 1.5% maturing on January 15^th 2013=$50,000

Cash held as compensating balance, to be held until January 1^st 2015=$10,000

Make the necessary entries to correct the cash balance on the balance sheet as of 12/31/2012.

2)

If company XYZ chooses to use fair value option for their receivables and the fair value is $5,000,000 over book value what is the consequence to the balance sheet and income statement?

3)

The following data regarding corrugated boxes is provided. Consider 2009 as the first date data was kept; there is no beginning inventory for 2010:

Inventory Layers                               Year                         Cost (at base prices)                       Index

Base year purchases                      2010                       16,000                                                      125

Purchases                                              2011                       10,000                                                      135

Purchases                                              2012                       8,000                                                         150

Requirement:

Using the above information calculate ending inventory at LIFO cost.