Bill Jovi is reviewing the cash accounting for Nottleman, Inc., a local mailing service. Jovis
review will focus on the petty cash account and the bank reconciliation for the month ended May
31, 2012. He has collected the following information from Not
Presented below are a number of independent situations.
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.
1. Checking account balance $925,00
McMann, Inc. decided to establish a petty cash fund to help ensure internal control over its small
cash expenditures. The following information is available for the month of April.
1. On April 1, it established a petty cash fund in the amount of $200.
The trial balance before adjustment for Sinatra Company shows the following balances.
Accounts Receivable .$82,000
Allowance for Doubtful Accounts .1,750
Sales Revenue .
Using the data above, give the journal entries requ
On April 1, 2012, Prince Company assigns $500,000 of its accounts receivable to the Third
National Bank as collateral for a $300,000 loan due July 1, 2012. The assignment agreement
calls for Prince Company to continue to collect the receivables. Third
Francis Equipment Co. closes its books regularly on December 31, but at the end of 2012 it held
its cash book open so that a more favorable balance sheet could be prepared for credit purposes.
Cash receipts and disbursements for the first 10 days of Ja
Presented below is information for Grant Company.
1. Beginning-of-the-year Accounts Receivable balance was $15,000.
2. Net sales (all on account) for the year were $100,000. Grant does not offer cash discounts.
3. Collections on accounts receivable dur
Aragon Company has just received the August 31, 2012, bank statement, which is summarized
Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550.
Cash on hand at August 31 is $310. The bookkeeper improperly
On December 31, 2012, Iva Majoli Company borrowed $62,092 from Paris Bank, signing a 5year, $100,000 zero-interest-bearing note. The note was issued to yield 10% interest.
Unfortunately, during 2014, Majoli began to experience financial difficulty. As
Horton Corporation is preparing a bank reconciliation and has identified the following potential
reconciling items. For each item, indicate if it is (1) added to balance per bank statement, (2)
deducted from balance per bank statement, (3) added to bal
Kipling Company deposits all receipts and makes all payments by check. The following
information is available from the cash records.
June 30 Bank Reconciliation
Balance per bank $ 7,000
Add: Deposits in transit 1,540
Deduct: Outstanding checks (2,000)
Sandel Company reports the following financial information before adjustments.
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful
accounts on the basis of (a) 4% of gross accounts receivable and (
On December 31, 2012, Oakbrook Inc. rendered services to Begin Corporation at an agreed price
of $102,049, accepting $40,000 down and agreeing to accept the balance in four equal
installments of $20,000 receivable each December 31. An assumed interest
njury Management Organization, Inc. - Houston, TX
$9 an hour
Serve as first point of contact for the Medical Bill Review unit from clients of provider bills. Perform date stamping
and sorts by client workflows and processes. Staff must operate a calculato
West Oaks Houston
JOB TITLE: RECEPTIONIST
REPORTS TO: ADMINISTRATOR
RESPONSIBILTIES: Will be responsible for greeting all individuals into the front office
area in a pleas
IOSCO (International Organization of Securities Commissions) and
the IASB (International Accounting Standards Board.) The IOSCO
does not set accounting standar
Presented below is information from Lopez Computers Incorporated. July 1 Sold $30,000 of
computers to Smallwood Company with terms 3/15, n/60. Lopez uses the gross method to record
10 Lopez received payment from Smallwood for the full a
On June 3, Bolton Company sold to Arquette Company merchandise having a sale price of
$2,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was
received by Arquette on June 8 from John Booth Transport Service for
The controller for Weinstein Co. is attempting to determine the amount of cash and cash
equivalents to be reported on its December 31, 2012, balance sheet. The following information is
1. Commercial savings account of $600,000 and a commercia
Gringo Corporation factors $250,000 of accounts receivable with Winkler Financing, Inc. on a
with recourse basis. Winkler Financing will collect the receivables.
The receivables records are transferred to Winkler Financing on August 15, 2012. Winkler
SEK Corp. factors $400,000 of accounts receivable with Mays Finance Corporation on a without
recourse basis on July 1, 2012. The receivables records are transferred to Mays Finance, which
will receive the collections. Mays Finance assesses a finance ch
Your accounts receivable clerk, Mary Herman, to whom you pay a salary of $1,500 per month,
has just purchased a new Audi. You decided to test the accuracy of the accounts receivable
balance of $117,000 as shown in the ledger.
The following information
The chief accountant for Dollywood Corporation provides you with the following list of
accounts receivable written off in the current year.
Dollywood Corporation follows the policy of debiting Bad Debt Expense as accounts are written
off. The chief acc
Patriot Company shows a balance of $241,140 in the Accounts Receivable account on December
31, 2012. The balance consists of the following.
Installment accounts due in 2013 $23,000
Installment accounts due after 2013 34,000
Overpayments to creditors 2,
On January 1, 2012, Botosan Company issued a $1,200,000, 5-year, zerointerest-bearing note to
National Organization Bank. The note was issued to yield 8% annual interest. Unfortunately,
during 2013 Botosan fell into financial trouble due to increased c
Sandburg Company requires additional cash for its business. Sandburg has decided to use its
accounts receivable to raise the additional cash and has asked you to determine the income
statement effects of the following contemplated transactions.
1. On J
Presented below is information related to Sanford Corp.
July 1 Sanford Corp. sold to Legler Co. merchandise having a sales price of $10,000 with terms
Sanford records its sales and receivables net.
5 Accounts receivable of $12,000 (gross)
Presented below is information related to Haselhof Inc.
Balance per books at October 31, $41,847.85; receipts $173,523.91; disbursements $164,893.54.
Balance per bank statement November 30, $56,274.20.
The following checks were outstanding at November
Braddock Inc. had the following long-term receivable account balances at December 31, 2011.
Note receivable from sale of division $1,500,000
Note receivable from officer 400,000
Transactions during 2012 and other information relating to Braddocks long-