1. As of December 31, Year 1, Valley Company has $17,320 cash in its checking account, as well as several other items listed below:

Bank credit card slips signed by customers- $ 1,475

Money market fund balance- $ 30,000

Investment in U.S. Treasury bills, mature within 90 days- $ 40,000

Checks received from customers, but not yet deposited in the bank -$ 1,780

Investment in 4,500 shares of Coca-Cola capital stock- $ 59,000

What amount should be shown in Valley's December 31, Year 1, balance sheet as "Cash and cash equivalents"?

• $149,575.

• $90,575.

• $132,255.

• $73,255.

2. A bank statement shows a balance of $11,875 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,165, deposits in transit of $1,610, and a bank service charge of $30. Among the paid checks returned by the bank was check number 900 in the amount of $570, which the company had erroneously recorded in the accounting records as $60. The "adjusted cash balance" at June 30 is:

• $10,280.

• $11,320.

• $9,140.

• $10,805.

3. The Cash account in the records of Hensley, Incorporated showed a balance of $3,250 at June 30. The bank statement, however, showed a balance of $4,250 at the same date. The only reconciling items consisted of a $400 deposit in transit, a bank service charge of $4, and a large number of outstanding checks.

What is the "adjusted cash balance" at June 30?

• $4,250.

• $2,850.

• $1,404.

• $3,246.