A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022. 1. $86 of currency and coin in a locked box used for incidental cash transactions. 2. A $11,900 U.S. Treasury bill, due May 31, 2022. 3. $340 of April-dated checks that Splish Brothers has received from customers but not yet deposited. 4. An $86 check received from a customer in payment of its April account, but postdated to May 1. 5. $4,230 in the company’s checking account. 6. $4,770 in its savings account. 7. $58 of prepaid postage in its postage meter. 8. A $26 IOU from the company receptionist. (a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022?
A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022. 1. $86 of currency and coin in a locked box used for incidental cash transactions. 2. A $11,900 U.S. Treasury bill, due May 31, 2022. 3. $340 of April-dated checks that Splish Brothers has received from customers but not yet deposited. 4. An $86 check received from a customer in payment of its April account, but postdated to May 1. 5. $4,230 in the company’s checking account. 6. $4,770 in its savings account. 7. $58 of prepaid postage in its postage meter. 8. A $26 IOU from the company receptionist. (a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end
1. | $86 of currency and coin in a locked box used for incidental cash transactions. | |
2. | A $11,900 U.S. Treasury bill, due May 31, 2022. | |
3. | $340 of April-dated checks that Splish Brothers has received from customers but not yet deposited. | |
4. | An $86 check received from a customer in payment of its April account, but postdated to May 1. | |
5. | $4,230 in the company’s checking account. | |
6. | $4,770 in its savings account. | |
7. | $58 of prepaid postage in its postage meter. | |
8. | A $26 IOU from the company receptionist. |
(a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022?
Cash and cash equivalents balance at April 30, 2022 | $Enter a dollar amount |
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