p34 - 49. On January 1, 2007, Mann Company borrows...

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49. On January 1, 2007, Mann Company borrows $2,000,000 from National Bank at 11% annual interest. In addition, Mann is required to keep a compensatory balance of $200,000 on deposit at National Bank which will earn interest at 5%. The effective interest that Mann pays on its $2,000,000 loan is a. 10.0%. b. 11.0%. c. 11.5%. d. 11.6%. 50. Hamilton Company has cash in bank of $10,000, restricted cash in a separate account of $3,000, and a bank overdraft in an account at another bank of $1,000. Hamilton should report cash of a. $9,000. b. $10,000. c. $12,000. d. $13,000. Cash and Receivables 7 - 11
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51. Horvath Company has the following items at year-end: Cash in bank $20,000 Petty cash 300 Short-term paper with maturity of 2 months 5,500 Postdated checks 1,400 Horvath should report cash and cash equivalents of a. $20,000. b. $20,300. c. $25,800. d. $27,200. 52. Marshell Company has cash in bank of $15,000, restricted cash in a separate account of $4,000, and a bank overdraft in an account at another bank of $2,000. Marshell should report cash of a. $13,000. b. $15,000. c. $18,000. d. $19,000. 53. Peterson Company has the following items at year-end: Cash in bank $30,000 Petty cash 500 Short-term paper with maturity of 2 months 8,200 Postdated checks 2,100 Peterson should report cash and cash equivalents of a. $30,000. b. $30,500.
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This note was uploaded on 11/03/2011 for the course ACCT 3223 taught by Professor Peck during the Spring '11 term at Texas State.

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p34 - 49. On January 1, 2007, Mann Company borrows...

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