Reporting Cash Jenkins Company has the following items at year-end. Currency and coin in safe. $5,500 Funds in savings account (requires $2,000 compensating balance) 27,250 Funds in checking account 6,950 Traveler's checks 700 Postdated check 1,450 Not-sufficient-funds check 1,050 Money market fund 35,400 Required Identify the amount of the above items that should be reported as cash and cash equivalents on Jenkins Company's balance sheet.

Q: Differentiate between the accrual method and cash method?

A: The Cash Method: Revenue is reported on the income statement only when cash is received. Expenses…

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: What is Internal Rate of Return - All Cash Deal?  Please provide examples

A: Internal Rate of Return (IRR)IRR is the annualized effective compounded rate or return that can be…

Q: The total cash receipts have to be put in the final part?

A: The cash receipts means the amount of money received either through cash mode or bank.

Q: Example scenarios of commodity money, fiat money, representative money, fiduciary money and…

A: One of the important tools, in order to buy and sell the goods and services in the market, is known…

Q: Define Restricted Cash.

A: Restricted cash refers to money that is held for a specific purpose and therefore not available to…

Q: Which of the following is part of the payments system of the economy? A. currency B. demand deposits…

A: A payment system is any mechanism that settles banking transactions by transferring monetary value.…

Q: Why could cash be falling in a set of accounts?

A: Cash can fall in a set of accounts for a variety of reasons. These include making large purchases,…

Q: separation of duties

A: Separation of duty is the internal conttro process by which the company avoids the fraud and…

Q: What is the primary difference between cash and accrual accounting?

A: The business revenues and expenses can be recorded on the basis of cash or accrual.

Q: Is cash really king? Explain rationale

A: Yes, cash is indeed really king.

Q: what are the major sources (inflows) of cash?

A:

Q: Explain the possible restrictions on cash and their implications for classification in the balance…

A: Restricted Cash Restricted cash is define as the cash is not freely available for the company to…

Q: Describe cash equivalents

A: Cash equivalent means that amount which can be easily convertible into cash with any loss of value.…

Q: Is revenue earned the same as cash collected?  Why or why not?

A: Introduction: Cash basis accounting: Only cash transactions are recorded. No credit transactions are…

Q: why is commercial paper considered as cash equivalent?

A: Cash equivalent includes: Commercial paper Certificate of deposits Treasury bills Money market…

Q: What are cash equivalents? Provide two examples. Whyare these items often combined with cash for the…

A:

Q: What are the primary motives for holding cash?

A: Introduction: Cash is also recognized as most liquid and lesser productive assets of the company.…

Q: Why is cash management important?

A: Cash management is a technique used to manage cash of the entity. It helps in managing the cash that…

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.