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Gatti Corporation reported the following balances at June 30. $115 Accounts Paya

ID: 2339098 • Letter: G

Question

Gatti Corporation reported the following balances at June 30. $115 Accounts Payable Accounts Receivable Accumulated Depreciation Equipment37 Cash 16 110 Cash Equivalents Stock Depreciation Expense Dividends Equipment Notes Payable (long-term) Notes Payable (short-term) Petty Cash Restricted Cash (short-term) Retained Earnings Salaries and Wages Expense Service Revenue Unearned Revenue Utilities Expense 310 70 10 25 405 490 41 61 Required: 1. What amount should be reported as Cash and Cash Equivalents"? Cash and Cash Equivalents S37

Explanation / Answer


(1).

Cash and cash equivalents

$37

Explanation;

Cash and cash equivalents ($11 + $16 + $10) = $37

(2).

GATTI CORPORATION

Balance Sheet

As on June 30

Assets

Liabilities

Current assets;

Current assets;

Cash and cash equivalents

$37

Accounts payable

$115

Restricted cash

$25

Unearned revenue

$41

Accounts receivable

$75

Notes payable (Short-term)

$20

Total current assets

$137

Total current liabilities

$176

Non-current assets;

Notes payable (Long-term)

$70

Equipment

$310

Total liabilities

$246

- Accumulated depreciation

($37)

Stockholders’ equity;

Common stock

$110

Retained earnings

$54

Total stockholders’ equity

$164

Total assets

$410

Total liabilities and stockholders’ equity

$410

Cash and cash equivalents

$37