TAP 3 - 15% - Version 2 ACT340 Intermediate Accounting Exercise 1 (85 points) On January 10 Sparkle plc. sold to water ltd. a product having a sales price of $6,000 with terms of 3/10, n/60. On January 12, Shine plc received a cash payment for the balance due from River Itd. Instructions: Prepare journal entries on the Shine plc. books to record sales and receivables for all the events noted above under "Sales and receivables are entered at gross selling price" base. Exercise 2 (15 points) a. Define "cash equivalents". b. What may be included under the heading of "cash equivalents"? Give at least 3 examples. Bonus question (10 points) Calibar Company has the following items at year-end: Cash in bank Petty cash Commercial paper with maturity of 2 months Postdated checks Calibar should report cash and cash equivalents of a 30,000. b. 30,500. c. 38,700. d. 40,800. 30,000 500 8,200 2,100