A new accountant at Skyline Company is trying to identify which of the following amounts should be reported as the current asset Cash and Cash Equivalents in the year-end balance sheet, as at June 30, 2024:Currency and coins totalling $76 in a locked box used for petty cash transactions.A 60-day, $12,900 guaranteed investment certificate, due July 31, 2024.June-dated cheques worth $375 that Skyline has received from customers but not yet deposited.A $104 cheque received from a customer in payment of her June account, but postdated to July 1.A balance of $2,360 in the Royal Bank chequing account.A balance of $4,160 in the Royal Bank savings account.Prepaid postage of $52 in the postage meter.A $110 IOU from the company receptionist.Cash register floats of $330.Over-the-counter cash receipts for June 30 consisting of $540 of currency and coins, $90 of cheques from customers, $550 of debit card slips, and $740 of bank credit card slips. These amounts were processed by the bank and posted to the bank account on July 1. Ignore any related debit or credit card expenses.a) What amount should Skyline report as its cash and cash equivalents balance at June 30, 2024?Please explain for the answer (for the options chosen) and explain why the incorrect options weren't chosen.

The term "cash and cash equivalents" refers to a company's most easily convertible assets that can…

Answered: A new accountant at Skyline Company is…

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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A new accountant at Skyline Company is trying to identify which of the following amounts should be reported as the current asset Cash and Cash Equivalents in the year-end balance sheet, as at June 30, 2024:

Currency and coins totalling $76 in a locked box used for petty cash transactions.
A 60-day, $12,900 guaranteed investment certificate, due July 31, 2024.
June-dated cheques worth $375 that Skyline has received from customers but not yet deposited.
A $104 cheque received from a customer in payment of her June account, but postdated to July 1.
A balance of $2,360 in the Royal Bank chequing account.
A balance of $4,160 in the Royal Bank savings account.
Prepaid postage of $52 in the postage meter.
A $110 IOU from the company receptionist.
Cash register floats of $330.
Over-the-counter cash receipts for June 30 consisting of $540 of currency and coins, $90 of cheques from customers, $550 of debit card slips, and $740 of bank credit card slips. These amounts were processed by the bank and posted to the bank account on July 1. Ignore any related debit or credit card expenses.

a) What amount should Skyline report as its cash and cash equivalents balance at June 30, 2024?

Please explain for the answer (for the options chosen) and explain why the incorrect options weren't chosen.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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