Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

S2000U to record the sale a does the transaction prepared with the ar flows a me

ID: 2505245 • Letter: S

Question

S2000U to record the sale a does the transaction prepared with the ar flows a method? indirect 3 Cash Equivalents Lo its excess in the 13. has invested 2011 following instruments during December $100 Jan. 31, 2012 of deposit, May 31, 2012 Certificate deposit, due bonds, Certificate of Portland Investment in City of 11000, due 30, 2012 Inc., stock Investment in Sheetz, 125.000 A money market fund 22500 1250M 90-day Treasury bills Treasury note, due December 2012 200,00 Required A What should be included in cash equivalents at year-end 2011? B. Where should the amount of cash equivalents be disclosed? PROBLEMS 14. Adjustments to Income via the Indir Method: Operating Activites

Explanation / Answer

Statement showing Cash & Cash Equivalents:-

PArticulars

Amount($)

Certificate of deposit , due Jan.31,2012

Not an cash equivalent

Certificate of deposit , due May.31,2012

Not an cash equivalent

Investment in City of Portland bonds , due June 30,2012

Not an cash equivalent

Investment in Sheetz ,Inc. stock

Not an cash equivalent

A money market fund

225000

90-Days Treasury bills

125000

Tresaury note, due December 2012

Not an cash equivalent

Total Cash & Cash Equivalents as on Dec,31, 2011

350000

B] Cash Equivalents should be shown under the head CURRENT ASSETS

Statement showing Cash & Cash Equivalents:-

PArticulars

Amount($)

Certificate of deposit , due Jan.31,2012

Not an cash equivalent

Certificate of deposit , due May.31,2012

Not an cash equivalent

Investment in City of Portland bonds , due June 30,2012

Not an cash equivalent

Investment in Sheetz ,Inc. stock

Not an cash equivalent

A money market fund

225000

90-Days Treasury bills

125000

Tresaury note, due December 2012

Not an cash equivalent

Total Cash & Cash Equivalents as on Dec,31, 2011

350000

B] Cash Equivalents should be shown under the head CURRENT ASSETS