Cash in bank:Checking account$50,000Money market fund36,000Payroll account26,000Certificate of deposit (matures in 2 months)28,000Certificate of deposit (matures in 12 months)33,000Total cash in bank$173,000Cash in plant expansion fund143,000Cash on hand34,000Highly liquid investmentsPetty cashReceivables from customersStock investments53,0002,600122,00084,000U.S Treasury bills43,000The highly liquid investments (Commercial Paper) had maturities of 3 months or less when they were purchased. The stockinvestments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years.(a) What amount should Blossom report as "Cash and cash equivalents" on its balance sheet?

Lets classify each of the following if it is included in cash and cash equivalents or not: Checking…

Answered: Cash in bank: Checking account $50,000…

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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Fruit Salad Company prepared the following bank reconciliation in November:Balance per bank- P10,000,000Deposit in transit- P500,000Outstanding checks- P1,500,000There were total deposits of P6,000,000 including P1,000,000 of proceeds from loan, and charges for disbursements of P8,800,000 per December bank Statement including bank charges of P30,000 and NSF check of 100,000. All reconciliation items in November 30 cleared the bank on December 31.Check outstanding amounted to P1,500,000 and deposits in transit totaled P1,300,000 on December 31. What is the amount of cash disbursement per book in December?
Sheridan Company owns the following assets at the balance sheet date: Cash in bank-savings account $5,600 Cash on hand 840 Cash refund due from the Canada Revenue Agency 1,100 Cash in bank-chequing account 6,500 Stale-dated cheques from customers 250 Postdated cheques from customers 500 60-day treasury bill 10,000 What amount should be reported as cash and cash equivalents in the balance sheet? Cash and cash equivalents A I
30.ABC Corp had the following information: Cash on hand and in bank, P2,500,000 Cash restricted for bonds payable due in 2 years, P1,000,000 Time certificate of deposit, P3,000,000 Savings deposit set aside for dividend payment in 2 years, P500,000 The total amount to be reported as cash and cash equivalent is; 3,000,000 5,500,000 6,500,000 7,000,000
Gia Company has the following information available: Cash pledged as collateral U.S. Treasury bill due in one month (purchased six months ago) U.S. Treasury bill due in one year (purchased yesterday) Cash in checking account $3,000,000 $3,000,000 $2,500,000 $400,000 What is the amount of Cash and Cash Equivalents to be reported on the balance sheet? O A. $0 O B. $3,400,000 O C. $400,000 O D. $5,900,000
Choices are: a. 3,550,000 b. 3,660,000 c. 3,610,000 d. 3,655,000 Question: What amount was reported as unadjusted cash in bank balance per book? Show solution and explanation
Prepare a bank reconciliation statement
From page 4-2 of the VLN, which of the following is considered a Cash Equivalent? A. Shares of stock in Amazon.com B. 90 day supply of paper C. Account receivable to be collected in 30 days D. 3 month Certificate of Deposit
Balance per bank.. .$14,500 Balance per company records.... .13,875 Bank service charges. 75 Deposit in transit.. .3,750 NSF check... 800 Outstanding checks... 5,250 What is the adjusted balance on the bank reconciliation?
Delta Automotive Corporation has the following assets listed in its 12/31/2024 trial balance: Cash in bank-checking account $ 34,500 U.S. Treasury bills (mature in 60 days)*Footnote asterisk 7,000 Cash on hand (currency and coins ) 2,550 U.S. Treasury bills (mature in six months)*Footnote asterisk 22,000 Undeposited customer checks 3,040 * Footnote asterisk Purchased on 11/30/2024 Required: Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. For each of the items not included in your answer to requirement 1, select the correct classification of the item.
explain answer
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1. Prepare a bank reconciliation for Summer Corp. Balance per Summer Company books $500,000 Balance per Citi bank $510,000 Reconciling items Outstanding Checks $40,000 Nonsufficient funds Check $10,000 Deposits in transit $19,000 Bank Fees $1,000

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