Question

The following information is available for Birch Company at December 31: Money market fund balance $ 2,940 Certificate of deposit maturing June 30 of next year $ 16,500 Postdated checks from customers $ 1,850 Cash in bank account $ 23,931 NSF checks from customers returned by bank $ 800 Cash in petty cash fund $ 350 Inventory of postage stamps $ 33 U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $ 11,500 Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:

Answer 1

the cash and cash equivalent is $38,721

Step-by-step explanation:

The computation of the cash and cash equivalent is shown below

Money market fund balance $2,940

Cash in Bank Account $23,931

Cash in Petty cash funds $350

U.S Treasury bill purchased on Dec.15 $11,500

Total $38,721

Hence, the cash and cash equivalent is $38,721

The same is to be considered