The following information is available for Holland Company at December 31:
money market fund balance 2790
certificate of deposit maturing June 30 of next year 15000
postdated check from customers 1475
cash in bank account 22431
NFS check from customers returned by bank 650
cash in petty cash fund 200
inventory of postage stamp 18
U.S treasure bill purchase on 15 Dec. and maturing
on Feb.28 of following year 10000
Based on this information, Holland Company should report Cash and Cash Equivalents on December 31 of:
A. $35,421
B. $50,421
C. $37,546
D. $36,246
E. $40,439
Answer: Add $2,790 in money market fund + $22,431 of cash in bank + $200 of cash in petty cash fund + $10,000 of U.S. Treasury bill with maturity of less than three months on date of purchase = $35,421.
A. $35,421