A new accountant at Skysong, Inc. is trying to identify which of the amounts sho

Question

A new accountant at Skysong, Inc. is trying to identify which of the amounts shown below should be reported as the current asset "Cash an April 30, 2017 d cash equivalents" in the year-end- balance sheet, as of 1. $62 of currency and coin in a locked box used for incidental cash transactions 2. A $10,700 U.S. Treasury bill, due May 31, 201 3. $280 of April-dated checks that Skysong has received from customers but not yet deposited. 4. An $38 check r 5. $3,490 in the company's checking account. 6. $6,350 in its savings account 7. $62 of prepaid postage in its postage meter S. A $32 1OU from the company receptionist. from a customer in payment of its April account, but postdated to May 1 (a) What balance should Skysong report as its "Cash and cash equivalents" balance at April 30, 2017? Cash and cash equivalents balance at April 30, 2017 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 2 of 3 used SAVE FOR LATER SUBMET ANSW You hava surpassed the number of attempts 0 to earn Maximum Points for this question. For attempt(s) this attempt, and any subs you will earn points according to the Point Potential policy set by your i

Explanation / Answer

Solution: Cash and cash equivalents balance at April 30, 2017                 $ 20882 Working Notes: Cash and cash equivalents balance means assets which is other form of cash or can be converted into cash at very less period of time in other word highly liquid assets Cash and Cash Equivalents: Amount 1. Currency $62 2 U.S. Treasury bill $10,700 3 April checks $280 5. Checking account $3,490 6. Savings account $6,350 Total Cash and Cash Equivalents $20,882 Notes: 4. Postdated 1 may check Will be recorded in books on May 1st only hence cannot be shown as cash & cash equivalent on 30 April. 7. Prepaid postage is prepaid is purchased for usage not for investment it is shown as prepaid item in balance sheet 8. $32 IOU is staff loan , which can be or cannot be recovered, hence it is not Cash or cash equivalent item. Please feel free to ask if anything about above solution in comment section of the question.

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