Cash and cash equivalents
Response to the following problem:
Delta Automotive Corporation has the following assets listed in its 12/31/2016 trial balance:
Cash in bank--checking account $22,500
U.S. Treasury bills (mature in 60 days)* 5,000
Cash on hand (currency and coins) 1,350
US Treasury bills (nurture in six rnonths)* 10,000
Undeposited customer checks 1,840
*Purchased on 11/30/2016
Required:
1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2016 balance sheet.
2. For each of the items not included in your answer to requirement 1, explain the correct classification of the item.