Categorizing Cash & Cash Equivalents Chapter 5

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 Chapter 5

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