I-06.02 Problem

I-06.02 Problem - I-06.02 Manahan Corporation received its...

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I-06.02 Manahan Corporation received its August 31 bank statement showing total funds on deposit of $288,090.09. This amount was $149,158.22 in excess of the balance in the general ledger Cash account. Additional information consists of the following: The company has a 1-year, $100,000, certificate of deposit. This amount is included in the total funds listed on the bank statement. Manahan classifies this security in a separate investment account in its general ledger. Interest earned on the CD was $475 during the month. This interest is free for withdrawal and is automatically posted to the regular checking account. Manahan's first notification of the amount of interest for the month is via the bank statement, and the interest income has not yet been recorded in the general ledger Cash account. Manahan Corporation received a $50,000 draft for an oil and gas lease from XTX Exploration. This draft was presented to the bank in early July. Drafts are not cash until the maker (XTX) honors them (at their option), and this process can take as long as
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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I-06.02 Problem - I-06.02 Manahan Corporation received its...

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