Fauna Inc has the following items at year-end: Cash in First Bank &nb

Fauna Inc has the following items at year-end:

Cash in First Bank $15,000

Postdated checks $450

Bank overdraft in checking account at Second Bank $400

Savings account balance at Second Bank $2,600

Treasury bills maturing in 2 months $2,500

Petty cash on hand $600

Cash in Third Bank (bond sinking fund) $7,500

Customer checks waiting to be deposited $650

Fauna should report cash and cash equivalents of

Expert Solution

Particluars	Amount	Action to be taken
Cash in First Bank	$15,000	To be added in cash & cash equivalents
Postdated checks	$450	To be included in accounts receivable
Bank overdraft in checking account at Second Bank	$400	To be deducted from cash and cash equivalents
Savings account balance at Second Bank	$2,600	To be added in cash & cash equivalents
Treasury bills maturing in 2 months	$2,500	To be added in cash & cash equivalents
Petty cash on hand	$600	To be added in cash & cash equivalents
Cash in Third Bank (bond sinking fund)	$7,500	To be included in investments
Customer checks waiting to be deposited	$650	To be added in cash & cash equivalents

Cash and cash equivalents	$20,950

ekkarill92 answered 1 year ago

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