Case #2, part 2 - Cash and cash equivalents problem 1. On 12/31/x6, the accountant is...

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● Case #2, part 2 - Cash and cash equivalents problem 1. On 12/31/x6, the accountant is reconciling notes related to cash and cash-related holdings for Beco Corp. After scrutinizing cash receipts, bank accounts, and related information, you find the following in Bevo Corp.'s records and databases: ● ● ● ● Bevo Corp. possesses various types of short-term investments and bank accounts: Balance of money market account without check cashing privileges Balance of checking account Treasury bills originated on 12/1/x6, maturing on 2/28/x7 Cash and coin on premises of $5,350 Checks on hand totaled $40,000. Of this amount, $5,250 of checks were dated January 5, 20x7. The rest were dated prior to December 31, 20x6. Bevo Corp. deducts travel advances from future paychecks, at 12/31/x6 these totaled $2,000 to be deducted against employee salaries in January 20x7. Commercial paper originated on 11/1/x6, maturing on 1/31/x7 Investment originated on 1/1/x4, maturing on 3/1/x7 Bevo is due a tax refund of $5,500 but it won't be paid until 20x7 and holds dividend paying securities that will be paid dividends on January 1, 20x7 in the amount of $3,000. Bevo must set aside $300,000 of cash at all times in a legally-binding debt covenant attached to debt securities that will mature in three years. The company also has a similar legally-binding covenant of $150,000 attached to debt securities that will mature on 7/1/x7. Both of these amounts are included in its money market account without check cashing privileges. Bevo had an overdraft of $10,000. There were no compensating balances or protections on the account. Required: Create a partial balance sheet classifying the information included above. There will be current assets, long-term assets as well as current liabilities, but you must also further classify within these broad categories where necessary (e.g., cash and cash equivalents, receivables, marketable securities (aka, short- term investments), long-term investments). Current assets Cash and Cash Equivalents Restricted Cash Marketable securities $950,000 564,112 6,000 Hint: Your final work should follow the format of a balance sheet (with liquidity). For example: Balance Sheet at 12/31/x6 Trade receivables Non-trade receivables Long-term investments Restricted Cash $380,000 $65,000 Investments in securities Current liabilities $XXXXX $XXXXX $XXXXX $XXXXX $XXXXX $XXXXX $XXXXX $XXXXX For additional feedback, I would need the components you placed within each category rather than a full amount. ● Case #2, part 2 - Cash and cash equivalents problem 1. On 12/31/x6, the accountant is reconciling notes related to cash and cash-related holdings for Beco Corp. After scrutinizing cash receipts, bank accounts, and related information, you find the following in Bevo Corp.'s records and databases: ● ● ● ● Bevo Corp. possesses various types of short-term investments and bank accounts: Balance of money market account without check cashing privileges Balance of checking account Treasury bills originated on 12/1/x6, maturing on 2/28/x7 Cash and coin on premises of $5,350 Checks on hand totaled $40,000. Of this amount, $5,250 of checks were dated January 5, 20x7. The rest were dated prior to December 31, 20x6. Bevo Corp. deducts travel advances from future paychecks, at 12/31/x6 these totaled $2,000 to be deducted against employee salaries in January 20x7. Commercial paper originated on 11/1/x6, maturing on 1/31/x7 Investment originated on 1/1/x4, maturing on 3/1/x7 Bevo is due a tax refund of $5,500 but it won't be paid until 20x7 and holds dividend paying securities that will be paid dividends on January 1, 20x7 in the amount of $3,000. Bevo must set aside $300,000 of cash at all times in a legally-binding debt covenant attached to debt securities that will mature in three years. The company also has a similar legally-binding covenant of $150,000 attached to debt securities that will mature on 7/1/x7. Both of these amounts are included in its money market account without check cashing privileges. Bevo had an overdraft of $10,000. There were no compensating balances or protections on the account. Required: Create a partial balance sheet classifying the information included above. There will be current assets, long-term assets as well as current liabilities, but you must also further classify within these broad categories where necessary (e.g., cash and cash equivalents, receivables, marketable securities (aka, short- term investments), long-term investments). Current assets Cash and Cash Equivalents Restricted Cash Marketable securities $950,000 564,112 6,000 Hint: Your final work should follow the format of a balance sheet (with liquidity). For example: Balance Sheet at 12/31/x6 Trade receivables Non-trade receivables Long-term investments Restricted Cash $380,000 $65,000 Investments in securities Current liabilities $XXXXX $XXXXX $XXXXX $XXXXX $XXXXX $XXXXX $XXXXX $XXXXX For additional feedback, I would need the components you placed within each category rather than a full amount.

Answer rating: 100% (QA)

Bevo Corp Partial Balance Sheet at December 31 x6 Current Assets Cash and Cash Equivalents C... View the full answer