Question

580 2,500 1,800 Seven Corporanion had the following items listed in its trial balance at 12/3 1/2018: 3,100 11,000 Currency and coins Balance in checking account Customer checks waiting to be deposited Treasury bills, purchased on 11/1/2018 mature on 4/30/2019 Marketable equity securities Commercial paper, purchased on 11/1/2018 mature on 1/30/2019 4,600 What amount will Steven Corporation include in its year-end balance sheet as cash and cash equivalents? $8,190 $9,480. $12,580. $23,580. A. B. C. D. 2. Bond Company adopted the dollar-value LIFO inventory method on January 1, 2018. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO: Ending Inventory At Current Cost At Base Year Cost $306,000 321,500 359,000 Year 1/1/2018 12/31/2018 12/31/2019 Cost Index $306,000 337,575 430,800 1.00 1.05 1.20

Answer 1

1. Determine the balance of cash and cash equivalents on 12/31/2018 as shown below: Details Amount Currency and coins $580 Add: Balance in checking account $2,500) Add: Customer checks waiting to be deposited | $1,800 Add: Commercial paper, purchased on 11/1/2018 $4,600 Cash and cash equivalents $9,480 Thus, the correct option is option - B.