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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.

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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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.
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.
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