Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2) Jake Co., has following information, you have to classify which items are cash, cash equivalent? a) Commercial savings account of $600,400 and a commercial

2) Jake Co., has following information, you have to classify which items are cash, cash equivalent?
a) Commercial savings account of $600,400 and a commercial checking account balance of $842,500 are held at First National Bank of Yojimbo.
b) Money market fund account held at Volonte Co. (a mutual fund organization) permits Pearl to write checks on this balance, $5,316,200.
c) Travel advances of $194,900 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).
d) A bank overdraft of $121,100 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank.
e) The company has two certificates of deposit, each totaling $630,800. These CDs have a maturity of 120 days.
f) Currency and coin on hand amounted to $7,988.
g) Pearl has purchased $1,912,200 of commercial paper of Sergio Leone Co. which is due in 60 days.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Non Specialists

Authors: Catherine Gowthorpe

2nd Edition

1844802051, 978-1844802050

More Books

Students also viewed these Accounting questions