Cash, Cash Equivalents, and Short Term Investment Classifications
The Simmons Corporation had the following investments at December 31: 1. 1000 shares of Hollings, Inc., purchased early in the year at $40 per share and held as available for sale and with a year end fair market value of $38 per share
2. $25,000 in U.S. three month Treasury Bills
3. $15,000 commercial deposit with a maturity date of April 30 of the next year
4. $2,500 in postage stamps
5. $1,600 petty cash fund
6. $3,000 IOU from the president of Simmons Corporation
7. $12,000 money market account
Required
a. Describe where each item would be classified on the balance sheet.
b. At what amount should cash, cash equivalents, and short term investments be reported?