Question

A new accountant at Shamrock, Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2019.

1.		$60 of currency and coin in a locked box used for incidental cash transactions.
2.		A $10,600 U.S. Treasury bill, due May 31, 2019.
3.		$275 of April-dated checks that Shamrock has received from customers but not yet deposited.
4.		An $86 check received from a customer in payment of its April account, but postdated to May 1.
5.		$4,260 in the company’s checking account.
6.		$7,120 in its savings account.
7.		$60 of prepaid postage in its postage meter.
8.		A $30 IOU from the company receptionist.

(a) What balance should Shamrock report as its “Cash and cash equivalents” balance at April 30, 2019?

Cash and cash equivalents balance at April 30, 2019

Answer 1

The balance should shamrock report it's "Cash and cash equivalent" balance at April 30, 2019 is 22315

Explanation

cash and cash equivalent

Description	Amount
1.) Currency	60
2.) U.S Treasury bill	10600
3.) April checks	275
4.) Checking account	4260
5.) Saving account	7120
Totals	22315

Notes:

Cash and cash equivalent is the part of current assets. Which can easily converted into cash for ex petty cash fund,treasury bill ,saving account.

Treasury bill is included because of its maturity of three months after the purchase dates so it's a highly liquid.

cash and cash equivalent not to be included

In cash and cash equivalent not included prepared postage because prepaid postage is the part of only current assets is not the part of cash and cash equivalent.

The IOU from the company receptionist is not the part of cash and cash equivalent,IOU is the account receivable.

The check received from the customer on the amount of 86 is the payments if April account is a postdated check on may 1