A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022.1. $86 of currency and coin in a locked box used for incidental cash transactions.2. A $11,900 U.S. Treasury bill, due May 31, 2022.3. $340 of April-dated checks that Splish Brothers has received from customers but not yet deposited.4. An $86 check received from a customer in payment of its April account, but postdated to May 1.5. $4,230 in the company’s checking account.6. $4,770 in its savings account.7. $58 of prepaid postage in its postage meter.8. A $26 IOU from the company receptionist.(a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022?Cash and cash equivalents balance at April 30, 2022 $Enter a dollar amount

Cash and cash equivalent is the part of current assets which is reported on the balance sheet. Cash…

Answered: A new accountant at Splish Brothers…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.9MCE

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A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022.

1.		$86 of currency and coin in a locked box used for incidental cash transactions.
2.		A $11,900 U.S. Treasury bill, due May 31, 2022.
3.		$340 of April-dated checks that Splish Brothers has received from customers but not yet deposited.
4.		An $86 check received from a customer in payment of its April account, but postdated to May 1.
5.		$4,230 in the company’s checking account.
6.		$4,770 in its savings account.
7.		$58 of prepaid postage in its postage meter.
8.		A $26 IOU from the company receptionist.

(a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022?

Cash and cash equivalents balance at April 30, 2022

$Enter a dollar amount

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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