A new accounting student has been asked to determine the balance that should be reported as cash and cash equivalents as at December 31 for one of the firm's clients. The following information is available:

1. Cash on hand in the cash registers on December 31 totals $1,600. Of this amount, $500 is kept on hand as a cash float.

2. At December 31, the company has debit card slips in the cash register totalling $500.

3. At December 31, the company has MasterCard credit card slips in the cash register totalling $975.

4. The balance in the bank chequing account at December 31 is $7,460.

5. Trading investments include $5,000 in a Government of Ontario bond that falls due in 80 days.

6. The company sold $250 of merchandise to a customer late in the day on December 31. The customer had forgotten her wallet and promised to pay the amount on January 2.

7. The company has a U.S. dollar bank account. At December 31, its U.S. funds were the equivalent of $2,241 Canadian.

8. In order to hook up utilities, the company is required to deposit $1,000 in trust with Hydro One. This amount must remain on deposit until a satisfactory credit history has been established. The company expects to have this deposit back within the year.

Instructions

(a) Determine which items listed above would be considered to be cash and which would be considered to be cash equivalents.

(b) What combined amount would the company report as cash and cash equivalents on the year-end statement of financial position?

(c) Identify where any items that were not reported as cash and cash equivalents in (a) should be reported.