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inna [77]
3 years ago
11

The following information is available for Montrose Company at December 31: Cash in bank account $ 8,540 Petty cash $ 250 Short-

term investment (maturing in two months) $ 10,400 Checks from customers $ 1,350 Equipment $ 805 Treasury bill maturing in 60 days $ 10,000 Money orders $ 290 A three-year certificate of deposit maturing in three years $ 6,000 Based on this information, the determine the amount reported as Cash and Cash Equivalents on December 31.
Business
1 answer:
navik [9.2K]3 years ago
7 0

Answer:

Cash $10,430

Cash equivalents $20,400

Explanation:

Calculation to determine the amount reported as CASH on December 31

Using this formula

Cash = Cash in bank + Petty cash + Check from customer + money order

Let plug in the formula

Cash = $8,540 + $250 + $1,350 + $290

Cash = $10,430

Calculation to determine the amount reported as CASH EQUIVALENTS on December 31

Using this formula

Cash equivalents = Money market fund + Treasury bills

Let plug in the formula

Cash equivalents=$10,400+$10,000

Cash equivalents= $20,400

Therefore the amount reported as Cash and Cash Equivalents on December 31 are:

Cash $10,430

Cash equivalents $20,400

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