PB 5-4 (Supplement 5A) Reporting Petty Cash Transactions [LO 5-5, LO 5-S1]

[The following information applies to the questions displayed below.]

Service World maintains a petty cash fund. The fund custodian encountered the following events.

a.	The fund was established when a check for $350 was cashed and deposited into a locked cash box.
b.	An employee submitted a receipt for a customer delivery costing $30 and was reimbursed in full from petty cash.
c.	Another employee submitted a receipt for $70 for locksmith repairs to the office door and was reimbursed in full from petty cash.
d.	An employee submitted a receipt for newspaper advertising that cost the company $60. She was given $60 from the petty cash box.
e.	The petty cash custodian received and cashed a check that fully replenished the petty cash fund.
f.	An employee submitted a receipt for $45 for supplies and was reimbursed in full from petty cash.
g.	An employee submitted a receipt for $75 for filling up his personal vehicle. He was not reimbursed because it would violate company policy.
h.	At the end of the month, a check was given to the petty cash custodian to not only replenish the petty cash fund but also increase the total fund to $470.

PB5-4 Part 2 2. If Service World has $1,500 cash, $400 of government Treasury bills purchased last month with a six- week maturity, and $850 of cash set aside for legal reasons, how much will the company report on the balance sheet as "Cash and Cash Equivalents"? ash and Cash Equivalents