E7-1 - EASTWOOD COMPANY BALANCE SHEET December 31, 2007 A)...

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EASTWOOD COMPANY BALANCE SHEET December 31, 2007 A) Current Assets Cash and cash equivalents $6,508,700 Temporary Investments $2,100,000 $1,000,000 Long-term Assets Retirement of debt fund $1,500,000 $500,000 Total Cash $11,608,700 B) Reported as Receivables: Travel advance IOU from Marianne Koch Reported as Current Liabilities: Bank overdraft Investment in Sergio Leone Company Two CD's totaling $500,000 each Cash on deposit maintained as compensating balance Post dated check, January 12, 2008
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Phil Collins Company Journal entries 1 Cash $22,500 Loss on sale of Receivable $2,500 Accounts receivable $25,000 2 Cash $55,000 Sale of receivable $10,000 Accounts Receivable $65,000 3 Bad Debt Expense $6,220 Allowance for doubtful accounts $6,220 ($82,000*5%) + $2,120) 4 Bad Debt Expense $8,570 Allowance for doubtful accounts $8,570
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E8-3 Inventoriable costs: 1. Should be reported as inventory because Goods purchased f.o.b. shipping point that are in transit at the balance sheet date are to be included in the inventory of the
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E7-1 - EASTWOOD COMPANY BALANCE SHEET December 31, 2007 A)...

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