Академический Документы
Профессиональный Документы
Культура Документы
http://onlinehomework.guru/acc-422week-1/
ACC 422 Week 1
Exercise 7-2
Presented below are a number of independent situations.
For each individual situation, determine the amount that should be reported as cash.
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.
Cash balance
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.
Cash balance
3. Checking account balance $590,000; postdated check from a 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.
Cash balance
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.
Cash balance
5. Checking account balance $700,000; cash restricted for future plant expansion $500,000; shortterm 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.
Cash balance
Exercise 7-4
Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,500 per month, has
just purchased a new Acura. You decided to test the accuracy of the accounts receivable balance of
$82,000 as shown in the ledger.
The following information is available for your first year in business.
(1
)
Collections from
customers
(2
)
Merchandise
purchased
(3
)
Ending merchandise
inventory
(4
)
$198,000
320,000
90,000
Compute an estimate of the ending balance of accounts receivable from customers that should
appear in the ledger and any apparent shortages. Assume that all sales are made on account.
Apparent shortage
Exercise 7-8
At the end of 2014, Aramis Company has accounts receivable of $800,000 and an allowance for doub
2015, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be c
write-off.
Prepare the journal entry for Aramis Company to write off the Ramirez receivable. (If no entry is
account titles and enter 0 for the amounts. Credit account titles are automatically indented when
manually.)
Date
LINK TO TEXT
What is the net realizable value of Aramis Companys accounts receivable before the write-off of t
Exercise 7-9
The trial balance before adjustment of Reba McIntyre Inc. shows the following balances.
Dr.
Accounts
Receivable
Allowance for
Doubtful
Accounts
Sales Revenue
(all on credit)
Cr.
$90,000
1,750
$680,000
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 (b) 1% of net sales. (If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account
titles are automatically indented when the amount is entered. Do not indent manually.)
No.
(a)
Debit
Credit
(b)
Exercise 7-13
On April 1, 2014, Rasheed Company assigns $400,000 of its accounts receivable to the Third Nationa
due July 1, 2014. The assignment agreement calls for Rasheed Company to continue to collect the rec
finance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of inte
Prepare the April 1, 2014, journal entry for Rasheed Company. (If no entry is required, select "No
for the amounts. Credit account titles are automatically indented when the amount is entered. D
Date
April 1, 2014
Prepare the journal entry for Rasheeds collection of $350,000 of the accounts receivable during the
period from April 1, 2014, through June 30, 2014. (If no entry is required, select "No Entry" for
the account titles and enter 0 for the amounts. Credit account titles are automatically
indented when the amount is entered. Do not indent manually.)
Debit
Credit
Exercise 7-16
Beyonc Corporation factors $175,000 of accounts receivable with Kathleen Battle Financing, Inc.
on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables
records are transferred to Kathleen Battle Financing on August 15, 2014. Kathleen Battle Financing
assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount
Date
Debit
Credit
Exercise 8-3
Assume that in an annual audit of Harlowe Inc. at December 31, 2014, you find the following
transactions near the closing date.
Assuming that each of the amounts is material, state whether the merchandise should be included in
the clients inventory.
Transactions
1.
2.
3.
4.
5.
Exercise 8-13
Inventory information for Part 311 of Monique Aaron Corp. discloses the following information for th
June 1
Balance
June 10
11
Purchased
15
20
Purchased
27
Assuming that the periodic inventory method is used, compute the cost of goods sold and ending i
(1)
LIFO
Ending Inventory
LINK TO TEXT
LINK TO TEXT
Assuming that the perpetual inventory method is used and costs are computed at the time of each w
inventory at LIFO?
Assuming that the perpetual inventory method is used and costs are computed at the time of each
withdrawal, what is the gross profit if the inventory is valued at FIFO?