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At December 31, 2002, Kent Co. had the following balances in the account it maintains at First City Bank:              Checking account#1001                     P 525,000              Checking account#2001                     (    30,000)              Money market account, 60 days                     75,000              90-day certificate of deposit, due 2/28/03             150,000              180-day certificate of deposit, due 3/15/03         240,000  Kent classifies investments with original maturities of three months or less as cash equivalents. In its December 2002 balance sheet, what amount should Kent report as cash      and cash equivalents?         720,000     b. 750,000         c. 570,000         d. 600,000

At December 31, 2002, Kent Co. had the following balances in the account it maintains at First City Bank:              Checking account#1001                     P 525,000              Checking account#2001                     (    30,000)              Money market account, 60 days                     75,000              90-day certificate of deposit, due 2/28/03             150,000              180-day certificate of deposit, due 3/15/03         240,000  Kent classifies investments with original maturities of three months or less as cash equivalents. In its December 2002 balance sheet, what amount should Kent report as cash      and cash equivalents?         720,000     b. 750,000         c. 570,000         d. 600,000

FINANCIAL ACCOUNTING
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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At December 31, 2002, Kent Co. had the following balances in the account it maintains at First City Bank: 

            Checking account#1001                     P 525,000 

            Checking account#2001                     (    30,000) 

            Money market account, 60 days                     75,000 

            90-day certificate of deposit, due 2/28/03             150,000 

            180-day certificate of deposit, due 3/15/03         240,000 

Kent classifies investments with original maturities of three months or less as cash equivalents. In its December 2002 balance sheet, what amount should Kent report as cash      and cash equivalents? 

      

  1. 720,000     b. 750,000         c. 570,000         d. 600,000 
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