hould be reported on a company's balance sheet. The following information was given to the student at ear end: 1. The cash float for the cash registers totals $500. 2. The balance in the Petty Cash account is $300. 3. The balance in the company's chequing account is $24,500. The company also has a U.S. bank account, which contained the equivalent of $16,000 Canadian at year end. 4. The company has overdraft protection of $10,000 on its chequing account. 5. The company has a separate bank account with a balance of $4,250. This consists of cash deposits paid by tenants who lease office space from the company. The deposits will be refunded to the ten- ants at the end of their leases. 6. The company has $14,500 of postdated cheques from customers for payment of accounts receivable.
hould be reported on a company's balance sheet. The following information was given to the student at ear end: 1. The cash float for the cash registers totals $500. 2. The balance in the Petty Cash account is $300. 3. The balance in the company's chequing account is $24,500. The company also has a U.S. bank account, which contained the equivalent of $16,000 Canadian at year end. 4. The company has overdraft protection of $10,000 on its chequing account. 5. The company has a separate bank account with a balance of $4,250. This consists of cash deposits paid by tenants who lease office space from the company. The deposits will be refunded to the ten- ants at the end of their leases. 6. The company has $14,500 of postdated cheques from customers for payment of accounts receivable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Show all the work.
Transcribed Image Text:P7-4A A first-year co-op student is trying to determine the amount of cash and cash equivalents that
should be reported on a company's balance sheet. The following information was given to the student at
year end:
1. The cash float for the cash registers totals $500.
2. The balance in the Petty Cash account is $300.
3. The balance in the company's chequing account is $24,500. The company also has a U.S. bank
account, which contained the equivalent of $16,000 Canadian at year end.
4. The company has overdraft protection of $10,000 on its chequing account.
5. The company has a separate bank account with a balance of $4,250. This consists of cash deposits
paid by tenants who lease office space from the company. The deposits will be refunded to the ten-
ants at the end of their leases.
6. The company has $14,500 of postdated cheques from customers for payment of accounts receivable.
7. The company has the following short-term investments:
• $25,000 in treasury bills with a maturity date of less than 90 days
• $36,000 in shares of Reitmans (Canada) Limited
. $12,000 in a guaranteed investment certificate that matures in six months.
8. The balance in the company owner's personal bank account is $2,150.
9. The company has NSF cheques from customers totalling $875 that were returned by the bank.
Instructions
(a) Calculate the amount of cash and cash equivalents that should be reported on the year-end balance
sheet as a current asset.
(b) Identify where any items that were not reported as cash and cash equivalents in part (a) should be
reported.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education