Question

A new accountant at Teal Mountain 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. $90 of currency and coin in a locked box used for incidental cash transactions. 2. A $12,100 U.S. Treasury bill, due May 31, 2022. 3. $350 of April-dated checks that Teal Mountain has received from customers but not yet deposited. 4. An $90 check received from a customer in payment of its April account, but postdated to May 1. 5. $3,030 in the company's checking account. 6. $5,710 in its savings account. 7. $62 of prepaid postage in its postage meter. 8. A$30 IOU from the company receptionist. (a) What balance should Teal Mountain report as its "Cash and cash equivalents" balance at April 30, 2022? Cash and cash equivalents balance at April 30, 2022 $

Answer 1

Angers Total cash and cash equivalents at Apnt, 30,2022- $90 $ 12,600 $350 currency coin . = os Treasury Bill - beposit in Transit cash in Bank Total cash and each equivalents = > $ 8740 ($3030+ $5710) 21,260. Noles. Not included Plems are 4) Postdated check is an Recenable 357) postage stamps are offrce supplies 8) 100 is a Recervable Thanly