A new accountant at Magenta Company is trying to identify which of the following amounts should be reported as the current asset Cash in the year-end balance sheet, as at June 30, 2014:
1. Currency and coins totaling $79 in a locked box used for petty cash transactions
2. A 60-day, $12,000 guaranteed investment certificate, due July 31, 2014
3. June-dated cheques worth $300 that Magenta has received from customers but not yet deposited.
4. A $92 cheque received from a customer in payment of her June account, but postdated to July 1
5. A balance of $2,500 in the Royal Bank chequing account
6. A balance of $4,250 in the Royal Bank savings account
7. Prepaid postage of $70 in the postage meter
8. A $100 IOU from the company receptionist
9. Cash register fl oats of $300
10. Over-the-counter cash receipts for June 30 consisting of $570 of currency and coins, $130 of cheques from customers, $580 of debit card slips, and $750 of bank credit card slips. Th ese amounts were processed by the bank and posted to the bank account on July 1.
Instructions
(a) What amount should Magenta report as its cash and cash equivalents balance at June 30, 2014?
(b) In which financial statement and in which account should the items not included as cash and cash equivalents be reported?