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Week 2 - Individual Assignments - David Trejo

Week 2 - Individual Assignments - David Trejo -...

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E7-2 (Determine Cash Balance) Presented below are a number of independent situations. Instructions For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as cash, explain the rationale. Cash balance is $584,650 = ($600,000 - $17,000) + $300 + $1,350 Bonds should be reported as a non-current asset $599,800 Postdated check cannot be realized until deposited, postage stamps is a prepaid expense. 85000, the NSF check needs to be reported as a receivable. $700,900 1. Checking account balance $925,000; certificate of deposit $1,400,000; cash advance to subsidiary of $980,000; utility deposit paid to gas company $180. The cash balance of $925,000 should be reported as cash. The CDs are to be reported as temporary investment, the cash advance to subsidiary needs to be reported as A/R, the utility deposit should be reported as a receivable from the gas company. 2. Checking account balance $600,000; an overdraft in special checking account at same bank as normal checking account of $17,000; cash held in a bond sinking fund $200,000; petty cash fund $300; coins and currency on hand $1,350. 3. Checking account balance $590,000; postdated check from customer $11,000; cash restricted due to maintaining compensating balance requirement of $100,000; certified check from customer $9,800; postage stamps on hand $620. 4. Checking account balance at bank $37,000; money market balance at mutual fund (has checking privileges) $48,000; NSF check received from customer $800. 5. Checking account balance $700,000; cash restricted for future plant expansion $500,000; short-term Treasury bills $180,000; cash advance received from customer $900 (not included in checking account balance); cash advance of $7,000 to company executive, payable on demand; refundable deposit of $26,000 paid to federal government to guarantee performance on construction contract.
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Cash restricted for future plant expansion of $500,000 needs to be reported as a noncurrent asset, Short-term treasury bills of $180,000 needs to be reported as a temporary investment, cash advance of $7,000 to company executive needs to be reported as a receivable, refundable deposit of $26,000 paid to federal government needs to be reported as a receivable, the cash advance of $900 received from a customer needs to be reported as a liability too.
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E7-8 (Recording Bad Debts) At the end of 2007 Aramis Company has  an allowance for doubtful accounts of $40,000. On January 16, 2008, A
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