Question

In: Accounting

At December 31, Y1, ABC had the following balances in the accounts it maintains at D...

At December 31, Y1, ABC had the following balances in the accounts it maintains at D Bank and Z Bank:


Checking account – D Bank: $200,000


Checking account – D Bank: (10,000)


Checking account Z Bank: (5,000)


Money market account with check cashing privileges: 50,000


90-day CD, due 2/28/Y2: 25,000


180-day CD, due 4/15/Y2: 75,000


On its December 31, Y1, balance sheet, what amount should ABC report as cash and cash equivalents?

$335,000

$225,000

$210,000

$265,000

Solutions

Expert Solution

Answer
The correct is A: $ 3,35,000
Explanation
SN Particulars Amount ($)
1 Checking account – D Bank $        2,00,000
2 Checking account – D Bank $          -10,000
3 Checking account - Z Bank $            -5,000
4 Money market account with check cashing privileges $           50,000
5 90-day CD, due 2/28/Y2 $           25,000
6 180-day CD, due 4/15/Y2: 75,000 $           75,000
Cash & Cash equivalent $        3,35,000
Note-cash and cash equivalents of $ 3,35,000 should be reported in balance sheet of Y1 on 31 Dec.
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ekkarill92 answered 1 year ago
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