Question

The controller for Clint Ayayai Co. is attempting to determine the amount of cash to be reported on its December 31, 2020, balance sheet. The following information is provided.

1.Commercial savings account of $600,400 and a commercial checking account balance of $842,500 are held at First National Bank of Yojimbo.

2.Money market fund account held at Volonte Co. (a mutual fund organization) permits Ayayai to write checks on this balance, $5,316,200.

3.Travel advances of $194,900 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).

4.A separate cash fund in the amount of $1,503,400 is restricted for the retirement of long-term debt.

5.Petty cash fund of $2,000.

6.An I.O.U. from Marianne Koch, a company customer, in the amount of $154,400.

7.A bank overdraft of $121,100 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank.

8.The company has two certificates of deposit, each totaling $630,800. These CDs have a maturity of 120 days.

9.Ayayai has received a check that is dated January 12, 2021, in the amount of $122,900.

10.Ayayai has agreed to maintain a cash balance of $509,800 at all times at First National Bank of Yojimbo to ensure future credit availability.

11.Ayayai has purchased $1,912,200 of commercial paper of Sergio Leone Co. which is due in 60 days.

12.Currency and coin on hand amounted to $7,988.

(a) Compute the amount of cash and cash equivalents to be reported on Ayayai Co.’s balance sheet at December 31, 2020.

The amount of Cash and Cash Equivalents reported on December 31, 2020$enter The amount of Cash and Cash Equivalents reported on December 31, 2020 in dollars

Answer 1

ANSWER:

1	Commercial savings account—First National Bank of Yojimbo	$ 600,400
1	Commercial checking account—First National Bank of Yojimbo	$ 842,500
2	Money market fund—Volonte	$5,316,200
5	Petty cash	$ 2,000
11	Commercial Paper	$1,912,200
12	Currency and coin on hand	$ 7,988
	The amount of Cash and Cash Equivalents reported on December 31, 2020	$ 8681288

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Answer 2

why did you not include #10? it doesn't say it's restricted so it's part of cash, right?