Question

If the company also has $1,000 of petty cash on hand (recorded in a separate account), what total amount should the company report as Cash and Cash Equivalents on the April 30 balance sheet?

Answer 1

Explanation: from the above question, the total of cash and cash equivalent to be recorded in the balance sheet includes all cash balances in the bank and cash balance in the petty cash account.

From the above question, the cash and cash equivalent balance as at April 30 is $1,000 plus all bank balances as at that date.