Question

Gatti Corporation reported the following balances at June 30.

Accounts Payable	$110
Accounts Receivable	85
Accumulated Depreciation—Equipment	36
Cash	13
Cash Equivalents	18
Contributed Capital	130
Depreciation Expense	25
Dividends	7
Equipment	330
Notes Payable (long-term)	90
Notes Payable (short-term)	50
Petty Cash	10
Restricted Cash (short-term)	30
Retained Earnings	27
Salaries and Wages Expense	415
Service Revenue	510
Deferred Revenue	43
Utilities Expense	63

Required:
1. What amount should be reported as Cash and Cash Equivalents?

2. Prepare a classified balance sheet. Do not show the components that add up to your answer in requirement 1 but rather show only the line Cash and Cash Equivalents. (Amounts to be deducted should be indicated by a minus sign.)

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Question 3 of 4 Total

Answer 1

Computation of Cash and Cash Equivalent
Cash	$13.00
Cash Equivalents	$18.00
Petty Cash	$10.00
Total Cash & Cash Equivalents	$41.00

Balance Sheet
Gatti Corporation
ASSETS	Amount ($)	LIABILTIES & EQUITY	Amount ($)
Current Assets:		Current Liabilities:
Accounts receivables	$85.00	Accounts payable	$110.00
Cash & Cash Equivalents	$41.00	Notes payable (short term)	$50.00
Restricted Cash (short term)	$30.00	Deferred Revenue	$43.00
Total Current Assets	$156.00	Total Current Liabilities	$203.00
Non-Current Assets:		Non-Current Liabilities:
Equipment	$330.00	Notes payable (long term)	$90.00
Accumulated Depreciation	-$36.00	Total Non-Current Liabilities	$90.00
Total Non Current Assets	$294.00
		Stockholder's Equity:
		Contributed Capita	$130.00
		Retained Earnings (27+510-63-415-7-25)	$27.00
		Total Stockholder's Equity	$157.00
Total ASSETS	$450.00	Total LIABILITIES & EQUITY	$450.00