Question

Gatti Corporation reported the following balances at June 30. $ 140 110 23 180 48 45 Accounts Payable Accounts Receivable Accumulated Depreciation Equipment Cash Cash Equivalents Common Stock Deferred Revenue 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 Utilities Expense 560 68 Required: 1. What amount should be reported as "Cash and Cash Equivalents"? 2. Prepare a classified balance sheet. Do not show the components that add up to your answer in requirement 1 but rather show only the line "Cash and Cash Equivalents." Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount should be reported as "Cash and Cash Equivalents"? Cash and Cash Equivalents Required 1 Required 2 >

Answer 1

1.

Cash and Cash equivalents = Cash + Cash equivalents + Petty cash

= 18+23+5

= $46

2.

Income Statement
Revenues:
Service revenue	560
Expenses:
Salaries and wages expense	-440
Utilities expense	-68
Depreciation expense	-45
Total expenses	-553
Net Income	$7

Statement of Retained Earnings
Beginning retained earnings	32
Net Income	7
	$39
Dividends	-7
Retained earnings, Ending	$32

GATTI CORPORATION
Balance Sheet
Jun-30
Assets	Amount	Liabilities + Stockholders Equity	Amount
Current Assets:		Current Liabilities:
Cash and cash Equivalents	46	Note payable- (short term)	40
Restricted cash ( short term)	25	Accounts payable	140
Accounts receivable	110	Deferred revenue	48
Total Current Assets	181	Total Current Liabilities	228
Plant,Assets :		Note payable- (Long term)	70
Equipment	380	Total Liabilities	298
Less accumulated depreciation - Equipment	-51	Stockholders Equity:
Total Plant assets	329	Common stock	180
		Retained earnings	32
		Total stockholders equity	212
Total Assets	$510	Total Liabilities & Stockholders Equity	$510

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