(Classifying cash on the balance sheet, LO 1) For each of the following items, explain whether the amount described should be included in “Cash and Cash Equivalents” on Jelly Inc’’s (Jelly) December 31, 2004 balance sheet:

a. $22,300 in Jelly’s chequing account at the bank.

b. An investment certificate that will pay $10,000 plus accrued interest on the date it is cashed. The certificate can be cashed at any time by Jelly.

c. A guaranteed investment certificate that matures on July 15, 2006. Jelly will receive $11,000 when the certificate matures.

d. $250 kept in the office to pay for incidentals such as office supplies.

e. $12,500 kept in a savings account at the bank.

f. $7,000 of cheques received from customers in mid-December, 2004, but not yet cashed.
g. $10,000 held by Jelly’s lawyer for purposes of paying a particular supplier when equipment ordered is delivered. The supplier required that the lawyer hold the money so that it would be assured of payment. The equipment is due to be delivered in February 2005.
h. $4,200 that is owed by a senior executive. The amount is to be paid on January 5, 2004.
i. £3,000 (British pounds) held in an account at a major BHuSH bank.