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Included in December 31 Checkbook Balance

Aruba Company had $8,000,000 in its checkbook balance on December 31, 2017. It also held various cash and cash equivalent items in its safe totaling $10,440,000, including a $500,000 NSF check that was redeposited and cleared in January 2018 and a $1,500,000 check dated December 31, 2017 but not mailed until January 2018.

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XI Montero
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800 views1 page

Included in December 31 Checkbook Balance

Aruba Company had $8,000,000 in its checkbook balance on December 31, 2017. It also held various cash and cash equivalent items in its safe totaling $10,440,000, including a $500,000 NSF check that was redeposited and cleared in January 2018 and a $1,500,000 check dated December 31, 2017 but not mailed until January 2018.

Uploaded by

XI Montero
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Aruba Company had a checkbook balance on December 31, 2017 of P8,000,000 and held the

following items in the safe:

Check payable to Aruba, dated January 5, 2018,


included in December 31 checkbook balance 2,000,000

Check payable to Aruba, deposited December 20,


and included in December 31 checkbook balance,
but returned by bank on December 30, stamped
"NSF”. The check was redeposited January 2, 2018,
and cleared January 3, 2018 500,000

Check drawn on Aruba's account and payable to a vendor,


dated and recorded December 31 but not mailed
until January 15, 2018 1,500,000

Cash on hand - undeposited collections 400,000


Change fund 40,000
Time deposit for plant expansion 1,000,000
Treasury bill 2,500,000
Money market placement 3,000,000
Postage stamps unused 10,000

1. What total amount should be reported as cash on December 31, 2020?


a. 7,400,000
b. 7,440,000
c. 8,440,000
d. 7,450,000
2. What total amount should be reported as cash equivalents on December 31, 2020?
a. 6,500,000
b. 3,000,000
c. 5,500,000
d. 2,500,000

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