Currency and coin in safe – $5,500
Funds in savings account
(requires $3,000 compensating balance) 15,250
Funds in checking account 1,750
Traveler’s checks 1500
Postdated check 2,250
Not-sufficient-funds check 450
Money market fund 12,600
Identify the amount of the above items that should be reported as cash and cash equivalents on Jenkins Company’s balance sheet
: cash and cash equivalents = $ 36,300
Working notes for the above answer is as under
cash and cash equivalents
Amount in $
Currency and coin in safe
5500
Funds in savings account
15250
Funds in checking account
1750
Traveler’s checks
1500
Postdated check
2250
Not-sufficient-funds check
450
Money market fund
12600
Total
39300
Less
requires for compensating
balance
3000
cash and cash equivalents
36300
Explanation to the answer :
You need to add currency and coins in safe, funds in saving account, funds in checking account, travelers check, and money market fund. Once you get that total, subtract the 3,000 from it
