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Corp. had the following balances at December 31, 2002:           Cash in checking account                  P 420,000          Cash in money market account                                   300,000          Treasury bill purchased 12/01/02, maturing 2/28/03          960,000          Treasury bond purchased 3/01/01, maturing 2/28/03                   600,000  Bell’s policy is to treat as cash equivalents all highly liquid investments with maturity of three months or less when purchased. What amount should Bell report as cash and cash equivalents      in its December 31, 2002 balance sheet?         2,280,000     b. 1,680,000         c. 720,000         d. 1,380,000

Corp. had the following balances at December 31, 2002:           Cash in checking account                  P 420,000          Cash in money market account                                   300,000          Treasury bill purchased 12/01/02, maturing 2/28/03          960,000          Treasury bond purchased 3/01/01, maturing 2/28/03                   600,000  Bell’s policy is to treat as cash equivalents all highly liquid investments with maturity of three months or less when purchased. What amount should Bell report as cash and cash equivalents      in its December 31, 2002 balance sheet?         2,280,000     b. 1,680,000         c. 720,000         d. 1,380,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Corp. had the following balances at December 31, 2002:  

        Cash in checking account                  P 420,000 

        Cash in money market account                                   300,000 

        Treasury bill purchased 12/01/02, maturing 2/28/03          960,000 

        Treasury bond purchased 3/01/01, maturing 2/28/03                   600,000 

Bell’s policy is to treat as cash equivalents all highly liquid investments with maturity of three months or less when purchased. What amount should Bell report as cash and cash equivalents      in its December 31, 2002 balance sheet? 

      

  1. 2,280,000     b. 1,680,000         c. 720,000         d. 1,380,000 
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