Sheridan Company has recorded the following items in its financial records. Cash in bank: Checking account Money market fund Payroll account Certificate of deposit (matures in 2 months) Certificate of deposit (matures in 12 months) Total cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments U.S Treasury bills $45,000 31.000 21,000 23,000 28,000 Cash and cash equivalents $148,000 138,000 29,000 48,000 2,100 117,000 79,000 38,000 The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. (a) What amount should Sheridan report as "Cash and cash equivalents" on its balance sheet?

Sheridan Company has recorded the following items in its financial records. Cash in bank: Checking account Money market fund Payroll account Certificate of deposit (matures in 2 months) Certificate of deposit (matures in 12 months) Total cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments U.S Treasury bills $45,000 31.000 21,000 23,000 28,000 Cash and cash equivalents $148,000 138,000 29,000 48,000 2,100 117,000 79,000 38,000 The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. (a) What amount should Sheridan report as "Cash and cash equivalents" on its balance sheet?

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

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Sheridan Company has recorded the following items in its financial records.
Cash in bank:
Checking account
Money market fund
Payroll account
Certificate of deposit (matures in 2 months)
Certificate of deposit (matures in 12 months)
Total cash in bank
Cash in plant expansion fund
Cash on hand
Highly liquid investments
Petty cash
Receivables from customers
Stock investments
U.S Treasury bills
$45,000
31.000
21,000
23,000
28,000
Cash and cash equivalents $
$148,000
138,000
29,000
48,000
2,100
117,000
79,000
38,000
The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the
next 6 to 12 months. The plant expansion project will begin in 3 years.
(a) What amount should Sheridan report as "Cash and cash equivalents" on its balance sheet?

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