The Simmons Corporation had the following investments at December 31: 1. 1000 shares of Hollings,Inc.,purchased early in
Question:
The Simmons Corporation had the following investments at December 31: 1. 1000 shares of Hollings,Inc.,purchased early in the year at $40 per share and held as available-for-sale and with a year-end fair market value of $38 per share 2. $25,000 in U.S. three-month Treasury Bills 3. $15,000 commercial deposit with a maturity date of April 30 of the next year 4. $2,500 in postage stamps 5. $1,600 petty cash fund 6. $3,000 IOU from the president of Simmons Corporation 7. $12,000 money market account Required
a. Describe where each item would be classified on the balance sheet.
b. At what amount should cash,cash equivalents,and short-term investments be reported? E-967
Step by Step Answer:
Financial Accounting Reporting And Analysis
ISBN: 9780324149999
6th Edition
Authors: Earl K. Stice, James Stice, Michael Diamond, James D. Stice