Question

Using the following information determine the amount that Pearson will report as Cash and Cash Equivalents on the Balance Sheet at the end of December.

Item	Amount
Cash is checking account	$10,000
Petty cash	580
Postage Stamps	654
Check from customer dated Jan 20, next year	321
3-month certificate of deposit	35,000
12- month certificate of deposit	35,000
Check from customer dated Dec 15, this year	175
Undeposited Cashier’s Checks from customer	729
IOU from customer	500
6-month U.S. Treasury bill purchased 4 months ago.	2,500
2-month high-grade Canada government security purchased 1 month ago.	1,000
Cash in savings account	100
Accounts Receivable	3,700
1-month U.S. Treasury bill purchased 2 weeks ago.	2,000
Time Deposits	1,600

	A.	50,604
	B.	51,009
	C.	51,184
	D.	53,684

Answer 1

OPTION C----$51184

Calculation of Cash & Cash equivalents

Cash in checking account	10000
Petty cash	580
3 month certificate of deposit	35000
Check from customer dated Dec 15	175
Undeposited cashiers check from customer	729
2 month high grade	1000
Cash in savings account	100
1 month US treasury bill	2000
Time deposits	1600
Total Cash & cash equivalents	$51184