Question

The following information is available for Birch Company at December 31:

Money market fund balance $2,790
Certificate of deposit maturing June 30 of next year $10,000
Postdated checks from customers $1,475
Cash in bank account $21,430
NSF checks from customers returned by bank $650
Cash in petty cash fund $200
Inventory of postage stamps $24

U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $5,000. Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of: ___________

Answer 1

the cash and cash equivalent is $29,420

Step-by-step explanation:

The computation of cash and cash equivalent is given below:

Money market fund balance $2790

Cash in Bank Account $21,430

Cash in Petty cash funds $200

U.S Treasury bill purchased on Dec.15 $5,000

cash and cash equivalent $29420

Hence, the cash and cash equivalent is $29,420

The same is to be considered and relevant too