2. At December 31, 2023, Davie Company had the following balances in the accounts it maintains at XYZ Bank: Checking account No. 101 Checking account No. 201 175,000 (10,000) Money market account 90-day certificate of deposit, due 2/28/24 25,000 50,000 180-day certificate of deposit, due 3/15/24 80,000 Davie classified investments with original maturities of three months or less as cash equivalents. In its December 31, 2023 Statement of financial position what amount should Davie report as cash and cash equivalent?

2. At December 31, 2023, Davie Company had the following balances in the accounts it maintains at XYZ Bank: Checking account No. 101 Checking account No. 201 175,000 (10,000) Money market account 90-day certificate of deposit, due 2/28/24 25,000 50,000 180-day certificate of deposit, due 3/15/24 80,000 Davie classified investments with original maturities of three months or less as cash equivalents. In its December 31, 2023 Statement of financial position what amount should Davie report as cash and cash equivalent?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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