Question

A new accountant at Windsor, Inc. is trying to identify which of the following amounts should be reported as the current asset "Cash and cash equivalents" in the year-end balance sheet, as of April 30, 2017. 1. $92 of currency and coin in a locked box used for incidental cash transactions. 2. A $12,200 U.S. Treasury bill, due May 31, 2017. 3. $355 of April-dated checks that Windsor has received from customers but not yet deposited. 4. An $92 check received from a customer in payment of its April account, but postdated to May 1. 5. $4,110 in the company’s checking account. 6. $7,080 in its savings account. 7. $64 of prepaid postage in its postage meter. 8. A $32 IOU from the company receptionist.

Answer 1

$23,837

Step-by-step explanation:

The following items should be reported as the current asset "Cash and cash equivalents":

(i) currency

(ii) U.S. Treasury bill

(iii) April checks

(iv) Checking account

(v) Savings account

Cash and cash equivalents balance at April 30, 2017:

= Currency + U.S. Treasury bill + April checks + Checking account + Savings account

= $92 + $12,200 + $355 + $4,110 + $7,080

= $23,837