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1 September, 20:33

A new accountant at Marin 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, 2017.1. $54 of currency and coin in a locked box used for incidental cash transactions. 2. A $10,300 U. S. Treasury bill, due May 31, 2017.3. $260 of April-dated checks that Marin has received from customers but not yet deposited. 4. An $80 check received from a customer in payment of its April account, but postdated to May 1.5. $2,880 in the company's checking account. 6. $5,730 in its savings account. 7. $54 of prepaid postage in its postage meter. 8. A $24 IOU from the company receptionist. What balance should Marin report as its "Cash and cash equivalents" balance at April 30, 2017?

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  1. 1 September, 21:06
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    Answer: $19,224

    Explanation:

    The amounts that are reported as the current assets "cash and cash equivalents" as follows:

    Currency = $54

    U. S. Treasury bill = $10,300

    April checks = $260

    Checking account = $2,880

    Savings account = $5,730

    Therefore,

    Cash and cash equivalents balance at April 30, 2017:

    = $54 + $10,300 + $260 + $2,880 + $5,730

    = $19,224
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