Question

# Old Rusty Lager Brewery has currency of \$4,900; petty cash of \$100; 100 shares of Twitter...

1. Old Rusty Lager Brewery has currency of \$4,900; petty cash of \$100; 100 shares of Twitter common stock valued at \$3,800; deposits in two checking accounts equaling \$83,234; two different certificates of deposit – one for \$3,000 which matures in 55 days and the second one for \$5,000 which matures in 125 days. Calculate the amount of cash and cash equivalents that will be shown on the company’s year-end balance sheet.

Currency = \$4,900

Petty cash = \$100

Deposits in checking account = \$83,234

Certificate of deposit maturity in 55 days = \$3,000

Certificate of deposit maturity in 125 days = \$5,000

Shares of common stock = \$3,800

Cash and cash equivalents = Currency + Petty cash + Deposits in checking account + Certificate of deposit maturity in 55 days

= 4,900+100+83,324+3,000

= \$91,324

Certificate of deposit maturing after 3 months and shares of common stock are not included in cash and cash equivalents.

Kindly comment if you need further assistance.

Thanks‼!

#### Earn Coins

Coins can be redeemed for fabulous gifts.