A company receives $10 million cash from investors in exchange for new common stock. Several weeks later, the company buys a $25 million machinery using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are: Multiple Choice Contributed Capital; Cash; Equipment; and Notes Payable. Shareholders' Equity: Cash; Long-term Investments; and Notes Payable. Retained Earnings; Equipment; and Notes Payable. Long-term Investments; Cash; Equipment; and Accounts Payable.

A company receives $10 million cash from investors in exchange for new common stock. Several weeks later, the company buys a $25 million machinery using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are: Multiple Choice Contributed Capital; Cash; Equipment; and Notes Payable. Shareholders' Equity: Cash; Long-term Investments; and Notes Payable. Retained Earnings; Equipment; and Notes Payable. Long-term Investments; Cash; Equipment; and Accounts Payable.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.2E

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A8
Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $21,000 cash deposit in checking account. $56,000 bond investment due in 20 years. • $14,000 U.S. Treasury bill due in 1 month. $1,100, 3-year loan to an employee. $4,600 of currency and coins. $1,400 of accounts receivable. Included in Cash and Cash and Cash Amount Cash Equivalents Amount Equivalents? Checking account 21,000 Bond investment 56,000 U.S. Treasury bill 14,000 Loan to an employee 1,100 Currency and coins 4,600 Accounts receivable 1,400 Total Cash and cash equivalents 24
Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $13,000 cash deposit in checking account. • $40,000 bond investment due in 20 years. $10,000 U.S. Treasury bill due in 1 month. $700, 3-year loan to an employee. $3,000 of currency and coins. $1,000 of accounts receivable. Included in Cash and Cash Equivalents Equivalents? Cash and Cash Amount Amount Checking account $4 13,000 Bond investment 40,000 U.S. Treasury bill 10,000 700 Loan to an employee Currency and coins 3,000 Accounts receivable 1,000 Total Cash and cash equivalents
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2. If HHC has $1,150 cash, $500 of government Treasury bills purchased four months ago, $780 of cash set aside for its workers' compensation insurance, how much will the company report on the balance sheet as "Cash and Cash Equivalents"? Cash and Cash Equivalents
ht nces Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. . . . . $5,000 cash deposit in checking account. $24,000 bond investment due in 20 years. $6,000 U.S. Treasury bill due in 1 month. $300, 3-year loan to an employee. $1,400 of currency and coins. $600 of accounts receivable. Checking account Bond investment U.S. Treasury bill Loan to an employee Currency and coins Accounts receivable Amount Total Cash and cash equivalents 5,000 24,000 6,000 300 1,400 600 Included in Cash and Cash Equivalents? Cash and Cash Equivalents Amount $ $ 0 0 0 0 0 0 0
Record the following transactions using t-accounting:
Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. . $4,000 cash deposit in checking account. . $22,000 bond investment due in 20 years. • $5,500 U.S. Treasury bill due in 1 month. $250, 3-year loan to an employee. • $1,200 of currency and coins. $550 of accounts receivable. Included in Cash and Cash and Amount Cash Equivalents? Cash Equivalents Amount Checking account $ 4,000 Bond investment 22,000 U.S. Treasury bill 5,500 Loan to an employee 250 Currency and coins 1,200 Accounts receivable 550 Total Cash and cash equivalents
11. CPA Company’s “cash count” as of December 31, 2021, is composed of the following:· Cash on Hand- P500,000· Demand Deposit- P2,000,000· Time Deposit, 30 days- P1,000,000· NSF Check of customer- P40,000· Money market placement (due June 30, 2022)- P1,500,000· Savings Deposit in a closed bank- P100,000· IOU from employee- P20,000· Pension Fund- P3,000,000· Petty Cash Fund- P10,000· Customer’s Check dated January 1, 2022- P50,000· Customer’s Check outstanding for 18 months- P40,000· Unused credit line- P500, 000 Additional information:a. Check of P200, 000 in payment of accounts payable was recorded on December 31, 2021 but mailed to suppliers on January 5, 2022.b. Check of P100, 000 dated January 15, 2022, in payment of accounts payable was recorded and mailed on December 31, 2021.c. The company uses the calendar year. The Cash Receipt Journal was held open until January 15, 2022, during which time P400, 000 was…
es Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. ● $7,000 cash deposit in checking account. . $28,000 bond investment due in 20 years. . $7,000 U.S. Treasury bill due in 1 month. . $400, 3-year loan to an employee. • $1,800 of currency and coins. . $700 of accounts receivable. Checking account Bond investment U.S. Treasury bill Loan to an employee. Currency and coins Accounts receivable $ Amount Total Cash and cash equivalents 7,000 28,000 7,000 400 1,800 700 Included in Cash and Cash Equivalents? Cash and Cash Equivalents Amount $ $ 0 0 0 0 0 0 0
11. MELON Company’s “cash count” as of December 31, 2021, is composed of the following:· Cash on Hand- P500,000· Demand Deposit- P2,000,000· Time Deposit, 30 days- P1,000,000· NSF Check of customer- P40,000· Money market placement (due June 30, 2022)- P1,500,000· Savings Deposit in a closed bank- P100,000· IOU from employee- P20,000· Pension Fund- P3,000,000· Petty Cash Fund- P10,000· Customer’s Check dated January 1, 2022- P50,000· Customer’s Check outstanding for 18 months- P40,000· Unused credit line- P500, 000 Additional information:a. Check of P200, 000 in payment of accounts payable was recorded on December 31, 2021 but mailed to suppliers on January 5, 2022.b. Check of P100, 000 dated January 15, 2022, in payment of accounts payable was recorded and mailed on December 31, 2021.c. The company uses the calendar year. The Cash Receipt Journal was held open until January 15, 2022, during which time P400, 000 was…
Sheridan Company has recorded the following items in its financial records. Cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments $55,800 102,000 14,800 38,200 610 90,200 67,600 The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. (a) What amount should Sheridan report as "Cash and cash equivalents" on its balance sheet? Cash and cash equivalents