Chapter 8, Problem 14E

(a)

To determine

The Balance Sheet:

This is a financial statement that shows the available assets (owner’s equity and outsider’s equity) and owed liabilities from investing and financial activities of a company. This statement reveals the financial health of company. So, this statement is also called as Statement of Financial Position. It helps the users to know the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The main components of balance sheet are assets, liabilities, and stockholders’ equity.

To determine: The amount W. Company must report as “Cash and cash equivalents” on its balance sheet.

(b)

To determine

The places where the items not included in part (a) must be reported on the balance sheet.