A new accountant at La Maison Ltée is trying to identify which of the following amounts should be reported as cash and cash equivalents in the April 30 year-end statement of financial position:
1. Currency and coin totalling $123 in a locked box used for incidental cash transactions
2. A balance of $4,325 in the Royal Bank chequing account
3. A balance of $5,000 in the Royal Bank savings account
4. A $25,000 government treasury bill, due the next month, May 31
5. April-dated cheques worth $750 that La Maison has received from customers but not yet deposited
6. A $185 cheque received from a customer in payment of its April account, but postdated to May 1
7. Over-the-counter receipts for April 30 consisting of $1,735 of currency and coin and $1,230 of cheques from customers, which were processed by the bank on May 1
8. A $50 IOU from the company receptionist
9. Cash register floats of $500
Instructions
(a) What amount should La Maison consider to be cash at April 30?
(b) What should it consider to be a cash equivalent?
(c) What combined amount would La Maison report as cash and cash equivalents on its year-end statement of financial position?
(d) In which financial statement(s) and in what account(s) should the items not included in part (a) be reported?