USA Negative Ending Cash Balance Treatment on CF


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If a company has several bank accounts and one of those accounts has a negative cash balance at year end, do you adjust the Ending Cash Balance on the Cash Flow by mapping the negative account to one of the liability lines in the body of the Cash Flow? (or do you include it in the Ending Cash Balance?)
 
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kirby

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You should have adjusted the negative bank account: Dr Cash Cr Liability when you closed the books. Now with the books closed make a worksheet adjusting entry to do the same now and that gets rid of the problem.
 
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kirby

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Also be aware that writing a bad check can be a misdemeanor or felony, depending on the amount.
 

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