Problem 10-4 (AICPA Adapted) On December 31, 2020, Kale Company had the following balances in the accounts maintained at First Bank: Checking account #101 Checking account #201 Time deposit 1,750,000 (100,000) Money market placement 250,000 1,000,000 90-day treasury bill, due February 28, 2021 180-day treasury bill, due March 15, 2021 500,000 800,000 The entity classified investments with original maturities of three months or less as cash equivalents. On December 31, 2020, what amount should be reported as cash and cash equivalents? a. 3,400,000 b. 2,000,000 C. 2,400,000 d. 3,200,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Answer problem 10-4 and 10-5.

00,000
00,000
00,000
00,000
00,000
00,000
00,000
00,000
00,000
00,000
vities?
vities?
vities?
Problem 10-4 (AICPA Adapted)
On December 31, 2020, Kale Company had the following
balances in the accounts maintained at First Bank:
Checking account #101
Checking account #201
Time deposit
1,750,000
( 100,000)
Money market placement
90-day treasury bill, due February 28, 2021
180-day treasury bill, due March 15, 2021
250,000
1,000,000
500,000
800,000
The entity classified investments with original maturities of
three months or less as cash equivalents.
On December 31, 2020, what amount should be reported as
cash and cash equivalents?
a. 3,400,000
b. 2,000,000
c. 2,400,000
d. 3,200,000
Problem 10-5 (IAA)
Oakwood Company provided the following data for the year:
1,300,000
1,000,000
Cash balance, beginning of year
Cash flow from financing activities
Cash flow from operating activities
400,000
(1,500,000)
Cash flow from investing activities
Total shareholders' equity, beginning of year
2,000,000
What is the cash balance at the end of current year?
a. 1,200,000
b. 1,600,000
c. 1,400,000
d. 1,700,000
Transcribed Image Text:00,000 00,000 00,000 00,000 00,000 00,000 00,000 00,000 00,000 00,000 vities? vities? vities? Problem 10-4 (AICPA Adapted) On December 31, 2020, Kale Company had the following balances in the accounts maintained at First Bank: Checking account #101 Checking account #201 Time deposit 1,750,000 ( 100,000) Money market placement 90-day treasury bill, due February 28, 2021 180-day treasury bill, due March 15, 2021 250,000 1,000,000 500,000 800,000 The entity classified investments with original maturities of three months or less as cash equivalents. On December 31, 2020, what amount should be reported as cash and cash equivalents? a. 3,400,000 b. 2,000,000 c. 2,400,000 d. 3,200,000 Problem 10-5 (IAA) Oakwood Company provided the following data for the year: 1,300,000 1,000,000 Cash balance, beginning of year Cash flow from financing activities Cash flow from operating activities 400,000 (1,500,000) Cash flow from investing activities Total shareholders' equity, beginning of year 2,000,000 What is the cash balance at the end of current year? a. 1,200,000 b. 1,600,000 c. 1,400,000 d. 1,700,000
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