Compute the amount of cash and cash equivalents

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Reference no: EM132420549

The controller for Clint ShamrockCo. is attempting to determine the amount of cash to be reported on its December 31, 2020, balance sheet. The following information is provided.

1.Commercial savings account of $632,600 and a commercial checking account balance of $862,600 are held at First National Bank of Yojimbo.

2.Money market fund account held at Volonte Co. (a mutual fund organization) permits Shamrock to write checks on this balance, $5,464,100.

3.Travel advances of $185,800 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).

4.A separate cash fund in the amount of $1,503,500 is restricted for the retirement of long-term debt.

5.Petty cash fund of $1,140.

6.An I.O.U. from Marianne Koch, a company customer, in the amount of $168,800.

7.A bank overdraft of $122,900 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank

8.The company has two certificates of deposit, each totaling $540,200. These CDs have a maturity of 120 days.

9.Shamrock has received a check that is dated January 12, 2021, in the amount of $121,860.

10.Shamrock has agreed to maintain a cash balance of $488,500 at all times at First National Bank of Yojimbo to ensure future credit availability.

11.Shamrock has purchased $2,038,300 of commercial paper of Sergio Leone Co. which is due in 60 days.

12.Currency and coin on hand amounted to $7,213.

(a) Compute the amount of cash and cash equivalents to be reported onShamrockCo.'s balance sheet at December 31, 2020.

Reference no: EM132420549

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