Assignment - Cash and cash equiv - Assignment Cash and Cash...

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Assignment: Cash and Cash Equivalents (Show your solutions) 1. Sunny Company had the following balances on Dec. 31, 2013 Cash in checking account 500,000 Cash in money market account -120 days 1,000,000 Treasury bill, purchased 3/15/13 maturing 3/15/14 3,000,000 Treasury bill, purchased 12/15/13 maturing 3/15/14 2,000,000 Marketable equity securities 300,000 What amount should Sunny report as “cash and cash equivalent” on December 31, 2013? a) 3,800,000 c) 2,500,000 b) 6,800,000 d) 3,500,000 2. The following information pertains to Moody Company on December 31, 2013: Undeposited collections 60,000 Cash in bank BDO 500,000 Cash in bank PNB (overdraft) (50,000) Undeposited NSF Checks 15,000 Undeposited checks from customer dated Jan 15, 2013 25,000 Cash in bank BDO (fund for payroll) 150,000 Cash in bank BDO (savings deposit) 100,000 Cash in bank BDO (money market instrument-90 days) 2,000,000 Cash in foreign bank (restricted) 100,000 IOUs from the president 30,000 Sinking fund cash 450,000 Listed stock held as temporary investment 120,000 Traveler’s check 20,000 What amount should Moody report as cash and cash equivalent on December 31, 2013?
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