A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022. 1. $86 of currency and coin in a locked box used for incidental cash transactions. 2. A $11,900 U.S. Treasury bill, due May 31, 2022. 3. $340 of April-dated checks that Splish Brothers has received from customers but not yet deposited. 4. An $86 check received from a customer in payment of its April account, but postdated to May 1. 5. $4,230 in the company’s checking account. 6. $4,770 in its savings account. 7. $58 of prepaid postage in its postage meter. 8. A $26 IOU from the company receptionist. (a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022? Cash and cash equivalents balance at April 30, 2022
A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022. 1. $86 of currency and coin in a locked box used for incidental cash transactions. 2. A $11,900 U.S. Treasury bill, due May 31, 2022. 3. $340 of April-dated checks that Splish Brothers has received from customers but not yet deposited. 4. An $86 check received from a customer in payment of its April account, but postdated to May 1. 5. $4,230 in the company’s checking account. 6. $4,770 in its savings account. 7. $58 of prepaid postage in its postage meter. 8. A $26 IOU from the company receptionist. (a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022? Cash and cash equivalents balance at April 30, 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022.
| 1. | $86 of currency and coin in a locked box used for incidental cash transactions. | |
| 2. | A $11,900 U.S. Treasury bill, due May 31, 2022. | |
| 3. | $340 of April-dated checks that Splish Brothers has received from customers but not yet deposited. | |
| 4. | An $86 check received from a customer in payment of its April account, but postdated to May 1. | |
| 5. | $4,230 in the company’s checking account. | |
| 6. | $4,770 in its savings account. | |
| 7. | $58 of prepaid postage in its postage meter. | |
| 8. | A $26 IOU from the company receptionist. |
(a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022?
| Cash and cash equivalents balance at April 30, 2022 |
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