Question

Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents.

$7,000 cash deposit in checking account.
$28,000 bond investment due in 20 years.
$7,000 U.S. Treasury bill due in 1 month.
$400, 3-year loan to an employee.
$1,800 of currency and coins.
$700 of accounts receivable.
Checking account:
Bond investment:
U.S. Treasury bill:
Loan to an employee:
Currency and coins:
Accounts receivable:
Cash and cash equivalents:
Expert Answer

Answer 1

Answer:

Checking account: $7,000

Bond investment:  $28,000

U.S. Treasury bill: $7,000

Loan to an employee: $400

Currency and coins: $1800

Accounts receivable: $700

Cash and cash equivalents: Cash, 1 month treasury bill, currency and coins are cash and cash equivalents so

(7,000+7,000+1,800)= 15,800

Explanation: