Martina, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining a
nd Assembly). The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows: Human Resources 6,000
Building Maintenance 13,000
Machining 18,000
Assembly 26,000
Assuming use of the step-down method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread)?
Explanation: from the above question, the total of cash and cash equivalent to be recorded in the balance sheet includes all cash balances in the bank and cash balance in the petty cash account.
From the above question, the cash and cash equivalent balance as at April 30 is $1,000 plus all bank balances as at that date.
