The following information is available for Fenton Manufacturing Company at June

Question

The following information is available for Fenton Manufacturing Company at June 30: Cash in bank account Inventory of postage stamps Money market fund balance Petty cash balance NSF checks from customers returned by bank Postdated checks received from customers Money orders A nine-month certificate of deposit maturing on December 31 of current year 6,655 $ 76 $12,600 $ 370 $ 887 $ 441 $457 8,200 Based on this information, Fenton Manufacturing Company should report Cash and Cash Equivalents on June 30 of Multiple Cholce $19,625 $15,682 O $20082 $20,588

Explanation / Answer

Answer is $ 20,082

The explanation is as follows:

Cash and cash equivalent is cash and other money market instruiment which are realizable with in a short span of 2-3 days.

Therefore, Balance of cash and cash equivalent on June 30 is as follows:

Cash at Bank                 $ 6,655

Money Market fund balance $12,600

Petty cash balance            $ 370

Money orders                    $ 457

Ending balance of cash and cash equivalents on June 30 (6655+12600+370+457) = $ 20,082

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