Delmar Corporation is required by its major raw materials supplier (Brazilian Jungle Products) to maintain a minimum balance of $1,000,000 in the First United Bank of Miami.
Brazilian requires the payments for its sales of raw materials to Delmar to be paid through this account and that the balance must be maintained daily.
Failure to maintain the minimum balance would result in an immediate shutdown of all raw material transports and would significantly disrupt the production of Delmar.
The controller of Delmar Corporation feels that the company should be able to include the cash balance in First United Bank in the general cash account on Delmar’s financial statements even though the cash is not available for usage.
However, the controller is unsure of how to deal with the situation and asks you to research the financial reporting requirements.
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ช่วยแปลเอกสารหน่อยครับบ (ต้องการด่วน)
Brazilian requires the payments for its sales of raw materials to Delmar to be paid through this account and that the balance must be maintained daily.
Failure to maintain the minimum balance would result in an immediate shutdown of all raw material transports and would significantly disrupt the production of Delmar.
The controller of Delmar Corporation feels that the company should be able to include the cash balance in First United Bank in the general cash account on Delmar’s financial statements even though the cash is not available for usage.
However, the controller is unsure of how to deal with the situation and asks you to research the financial reporting requirements.
.
.
.
.
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