Chapter 9, Problem 9.1MC

The following are held by YRT Corporation at December 31 Year 1:

Cash in checking account	$15,000
Petty cash	250
Check from customer dated 01/31/Year 2	350
3-month certificate of deposit, due 01/15/Year 2	40,000
12-month certificate of deposit, due 02/28/Year 2	36,000
Cash in bond sinking fund account	60,000

YRT Corporation classifies investments with original maturities of three months or less as cash equivalents. In its December 31, Year 1, balance sheet, what amount should YRT Corporation report as cash and cash equivalents?

1. a. $ 15,250
2. b. $ 55,250
3. c. $ 55,600
4. d. $ 151,250