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Categorizing Cash & Cash Equivalents Topic 6

Which of the following would not be included in the Cash and Cash Equivalents on a Balance Sheet dated December 31, Year 1.

  1. A money market account
  2. 6 month commercial paper, acquired Nov. 1, Year 1
  3. 3 month certificate of deposit, acquired Dec. 15, Year 1
  4. 100 share of GE stock, acquired December 1, Year 1; expected sale date of February 15, Year 2
  5. 12 month treasury bill, acquired October 15, Year 1

Bank Reconciliation Topic 6

The treasurer of a company was preparing a bank reconciliation as of March 31. The following items were identified:

  • The balance per books was $9,600
  • Interest earned on the checking account during March was $10.
  • Outstanding checks totaled $875.
  • A customer’s NSF check in the amount of $40 was returned with the March bank statement.
  • Deposits in transit amounted to $530.
  • During March, the bookkeeper for the company recorded payment of an account payable incorrectly as $136. The check was paid by the bank in the correct amount of $361.
  • The bank incorrectly credited the company’s account $140 for a check deposited by another company.

What is the balance per the bank statement on March 31?

  1. 9,550
  2. 9,140
  3. 10,280
  4. 9,830
  5. 8,860

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