Cash balance per bank $4,287.

20
Add: NSF check 597.00
Less: Bank service charge
33.10
Adjusted balance per bank
$4,851.10
Cash balance per books $4,585.20
Less: Deposits in transit 584.90
Add: Outstanding checks
917.00
Adjusted balance per books
$4,917.30
(a) What is the proper adjusted cash balance per bank?
The proper adjusted cash balance per bank
$
(b) What is the proper adjusted cash balance per books?
The proper adjusted cash balance per books
$
(c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per
books.

Cash balance per bank $4,287.20

Add: Deposits in transit 584.90
Less: Outstanding checks 917.00
= $3,955.10 adjusted balance per bank
Cash balance per books $4,585.20
Less: NSF check 597.00
Less: Bank service charge 33.10
= $3,955.10 adjusted balance per books
Journal Entries:
Dr Accounts Receivable 597
Cr Cash 597
Dr Miscellaneous Expense 33.10
Cr Cash 33.10

home / study / business / accounting / questions and answers / exercise 7-12 your answer is incorrect. try
again. ...

Question
Exercise 7-12

Your answer is incorrect. Try again.

A new accountant at Leftwich Inc. is trying to identify which of

the amounts shown below should be reported as the current
asset Cash and cash equivalents in the year-end balance
sheet, as of April 30, 2014.
1
.

$60 of currency and coin in a locked box used for incidental cash
transactions.

2
.

A $10,000 U.S. Treasury bill, due May 31, 2014.

3
.

$260 of April-dated checks that Leftwich has received from customers but
not yet deposited.

4
.

An $85 check received from a customer in payment of its April account,

but postdated to May 1.

5
.

$2,500 in the companys checking account.

6
.

$4,800 in its savings account.

7
.

$75 of prepaid postage in its postage meter.

8
.

A $25 IOU from the company receptionist.

(a) What balance should Leftwich report as its Cash and

cash equivalents balance at April 30, 2014?

Cash and cash equivalents balance at April 30, 2014

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$?????

home / study / business / accounting / questions and answers / problem 7-7a castle corporation prepares
monthly ...

Question
Problem 7-7A

Castle Corporation prepares monthly cash budgets. Here are relevant data from
operating budgets for 2014.

January
Sales

February

$360,000

$400,000

120,000

130,000

Salaries

84,000

81,000

Administrative expenses

72,000

75,000

Selling expenses

79,000

88,000

Purchases

All sales and purchases are on account. Budgeted collections and disbursement
data are given below. All other expenses are paid in the month incurred except for
administrative expenses, which include $1,000 of depreciation per month.
Other data.

1
.

Collections from customers: January $326,000; February $378,000.

2
.

Payments for purchases: January $110,000; February $135,000.

Other receipts: January: collection of December 31, 2013, notes receivable

$15,000; February: proceeds from sale of securities $4,000.

4
.

Other disbursements: February $10,000 cash dividend.

The companys cash balance on January 1, 2014, is expected to be
$46,000. The company wants to maintain a minimum cash balance of
$40,000.
Prepare a cash budget for January and February.

CASTLE CORPORATION
Cash Budget
For the Two Months Ending February 28, 2014

Ad
d:

Le
ss:

January

February

Ad
d:
Le
ss:
$
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home / study / business / accounting / questions and answers / presented below are the data on three
promissory ...

Question

Presented below are the data on three promissory notes.

Determine the missing amounts (round answers to 0 decimal
places, e.g. 125 Assume length of year = 360 days.)
Date of
Note
Interest
April 1

Terms Maturity
Total Interest
Date
60 days

Principal

Annual
Rate

$600,000

9%

July 2
March 7

?
30 days ?
$600
6 months ?
?

90,000
120,000

?
10%

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o
o
o
o
o

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Very confusing post. Still am trying..Hope I got it right
1. Total Int = Prinicpal*Int Rate*Maturity period/360 = 600,000*9%*60/360 = 9000
2. Rate = Int *360/(Principal*Maturity period) = 600*360/(90000*30) = 8%
3. Total Int = Prinicpal*Int Rate*Maturity period/360 = 120,000*10%*6/12 = 6000

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First answer!

Presented below are data on three promissory notes. Determine the missing amounts. (Round

answers to 0 decimal places, e.g. 125. Assume length of year = 360 days.)

Date
of
Note

Terms

Maturity
Date

Principa
l

Annual
Interest Rate

Total
Interest

$
(a
)

April
1

60
days

May 31

9000

$600,000

9%

8.00

(b
)

July 2

30
days

August 1

90,000

$600
$

(c
)

March
7

6
months

September 7

6000

120,000

10%

home / study / business / accounting / questions and answers / suppose the 2014 financial statements of
3m company ...

Question

Suppose the 2014 financial statements of 3M

Company report net sales of $21.9 billion. Accounts
receivable (net) are $3.43 billion at the beginning of the year
and $3.51 billion at the end of the year.

1Compute 3Ms receivable turnover. (Round answers to 1

decimal place, e.g. 12.5.)

Accounts receivable turnover ratio

______

2)Compute 3Ms average collection period for accounts

receivable in days. (Round answer to 1 decimal place,
e.g. 12.5. Use 365 days for calculation.)

Average collection period

________days

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1) Accounts Receivable turnover ratio = Net annual credit sale / (beginning accounts
receivable+ending accounts receivable)/2
= $21.9 billion/ ($3.43 + $3.51 billion)/2
=6.31 times
2) average collection period = average accounts receivable / (Annual sales/365
days)
average accounts receivable = 3.43+3.51 billion / 2
= $ 3.47 billion
average collection period = $ 3.47 / 0.06
= 57.8 days

times

Question

Exercise 8-8
These transactions took place for Glavine Co.
2013
1
.

May
1

Received a $5,500, 12-month, 7% note in exchange for an outstanding

account receivable from S. Rooney.

2
.

Dec.
31

Accrued interest revenue on the S. Rooney note.

2014
3
.

May
1

Received principal plus interest on the S. Rooney note. (No interest has
been accrued since December 31, 2013.)

Record the transactions in the general journal. The company

does not make entries to accrue interest except at December
31.(Credit account titles are automatically indented
when amount is entered. Do not indent manually.
Round answers to 0 decimal places, e.g. 5,250.)
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S.n
o

Date

Particulars

Debit
($)

Cred
it

($)

May
1,2013

Note Receivable

5500

To Accounts Receivable S.Rooney

5500

(Being Note for S.Rooney's

Balance)

Dec
31,2013

Interest Receivable

256.67
256.
67

To Interest
(Being Interest accrued)

May
31,2014

Bank A/c
To Note Receivable

5500

To Interest Receivable

256.
67

To Interest

128.
33

( Collect Note - S.Rooney)

These transactions took place for Glavine Co.

2013

5885

1.May 1
Received a $5,000, 12-month, 6% note in exchange for an outstanding account receivable from
S. Rooney.
2.Dec. 31
Accrued interest revenue on the S. Rooney note.
2014
3.May 1
Received principal plus interest on the S. Rooney note. (No interest has been accrued since
December 31, 2013.)
Record the transactions in the general journal. The company does not make entries to accrue
interest except at December 31.(Credit account titles are automatically indented when amount is
entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,250.)

Dr Notes receivable $5,000

Cr Accounts receivable $5,000
Dec. 31
Dr Interest receivable $200 [$5,000 x 6% x 8/12]
Cr Interest revenue $200
May 1
Dr Cash $5,300
Cr Notes receivable $5,000
Cr Interest receivable $200
Cr Interest revenue $100 [$5,000 x 6% x 4/12]

On January 1, 2012, Sather Company had Accounts Receivable $56,800 and Allowance for
Doubtful Accounts $5,690. Sather Company prepares financial statements annually and uses a
perpetual inventory system. During the year the following selected transactions occurred.
Jan. 5 Sold $8,200 of merchandise to Noel Company, terms n/30. Cost of the merchandise sold
was $5,210.
Feb. 2 Accepted a $8,200, 4-month, 9% promissory note from Noel Company for balance due.
Feb. 12 Sold $14,160 of merchandise costing $6,420 to Lima Company and accepted Lima's
$14,160, 2-month, 10% note for the balance due.
Feb. 26 Sold $6,020 of merchandise costing $4,090 to Hubbard Co., terms n/10.
Apr. 5 Accepted a $6,020, 3-month, 8% note from Hubbard Co. for balance due.
Apr. 12 Collected Lima Company note in full.
June 2 Collected Noel Company note in full.
June 15 Sold $2,600 of merchandise costing $1,520 to Matthews Inc. and accepted a $2,600, 6month, 12% note for the amount due.

Jan. 5 Sold $8,200 of merchandise to Noel Company, terms n/30. Cost of the merchandise sold
was $5,210.
Dr Accounts receivable (AR) $8,200
Cr Sales $8,200
Dr COGS $5,210
Cr Merchandise inventory (MI) $5,210
Feb. 2 Accepted a $8,200, 4-month, 9% promissory note from Noel Company for balance due.
Dr Notes receivable (NR) $8,200
Cr AR $8,200
Feb. 12 Sold $14,160 of merchandise costing $6,420 to Lima Company and accepted Lima's
$14,160, 2-month, 10% note for the balance due.
Dr NR $14,160
Cr Sales $14,160
Dr COGS $6,420
Cr MI $6,420
Feb. 26 Sold $6,020 of merchandise costing $4,090 to Hubbard Co., terms n/10.
Dr AR $6,020
Cr Sales $6,020
Dr COGS $4,090
Cr MI $4,090
Apr. 5 Accepted a $6,020, 3-month, 8% note from Hubbard Co. for balance due.
Dr NR $6,020
Cr AR $6,020
Apr. 12 Collected Lima Company note in full.
Dr Cash $14,396
Cr NR $14,160
Cr Interest revenue $236 ($14,160 x 10% x 2/12)
June 2 Collected Noel Company note in full.
Dr Cash $8,446
Cr NR $8,200
Cr Interest revenue $246 ($8,200 x 9% x 4/12)
June 15 Sold $2,600 of merchandise costing $1,520 to Matthews Inc. and accepted a $2,600, 6month, 12% note for the amount due.

Dr NR $2,600
Cr Sales $2,600
Dr COGS $1,520
Cr MI $1,520

On January 1, 2014, Oswalt Company had Accounts Receivable of

$54,200 and Allowance for Doubtful Accounts of $3,700. Oswalt
Company prepares financial statements annually. During the year, the
following selected transactions occurred.
1.
Jan. 5
Sold $4,000 of merchandise to Ross Company, terms
n/30.
2.
Feb. 2
Accepted a $4,000, 4-month, 9% promissory note
from Ross Company for balance due.
3.
12
Sold $12,000 of merchandise to Cano Company and
accepted Canos $12,000, 2-month, 10% note for the balance due.
4.
26
Sold $5,200 of merchandise to Meachum Co., terms n/10.
5.
Apr. 5
Accepted a $5,200, 3-month, 8% note from Meachum
Co. for balance due.
6.
12
Collected Cano Company note in full.
7.
June 2
Collected Ross Company note in full.
8.
15
Sold $2,000 of merchandise to Glanvile Inc. and accepted
a $2,000, 6-month, 12% note for the amount due.
Journalize the transactions.
Please use the format I have provided in the photo below:
On January 1, 2014, Oswalt Company had Accounts Receivable of $54,200 and Allowance for
Doubtful Accounts of $3,700. Oswalt Company prepares financial statements annually. During
the year, the following selected transactions occurred.
Journal Entries
1.

Jan. 5

Sold $4,000 of merchandise to Ross Company, terms n/30.

January 5
Accounts Receivables (Ross Company) A/c Dr. $4,000
To Sales Revenue A/c Cr. $4,000

2.
Feb. 2
balance due.

Accepted a $4,000, 4-month, 9% promissory note from Ross Company for

February 2
Notes Receivables (Ross company) A/c Dr. $4,000
To Accounts Receivables (Ross Company) A/c Cr. $4000
3.
12
Sold $12,000 of merchandise to Cano Company and accepted Canos $12,000, 2month, 10% note for the balance due.
12
Notes Receivables (Cano Company) A/c Dr. $12,000
To Sales Revenue A/c Cr. $12,000
4.

26

Sold $5,200 of merchandise to Meachum Co., terms n/10.

26
Accounts Receivables (Meachum Co.) A/c Dr. $5,200
To Sales Revenue A/c Cr. $5,200

5.

Apr. 5

Accepted a $5,200, 3-month, 8% note from Meachum Co. for balance due.

Apr. 5
Notes Receivables (Meachum Co.) A/c Dr. $5,200
To Accounts Receivables (Meachum Co.) A/c Cr. $5,200
6.

12

Collected Cano Company note in full.

12
Cash A/c Dr. $12,200
To Notes Receivables (Cano Company) A/c Cr. $12,000
To Interest Revenue A/c Cr. $ 200 ( $ 12000 *0.10* 2 month / 12 months)
7.

June 2

Collected Ross Company note in full.

June 2
Bank A/c Dr. $ 4120
To Notes Receivables (Ross Company) A/c Cr. $4,000

To Interest Revenues A/c Cr. $ 120

($ 4000 * 0.09 * 4 months / 12 months)

8.
15
Sold $2,000 of merchandise to Glanvile Inc. and accepted a $2,000, 6-month, 12%
note for the amount due.
15
Note Receivables (Glanvile Inc.) A/c Dr. $2,000
To Sales Revenue A/c Cr. $2,000

home / study / business / accounting / questions and answers / tolbert company incurs these expenditures
in purchasing ...

Question

Tolbert Company incurs these expenditures in purchasing a

truck: cash price $24,000; accident insurance (during use)
$2,000; sales taxes $1,080; motor vehicle license $300; and
painting and lettering $1,700.
What is the cost of the truck?
The cost of the truck $????
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Statement showing
computations
Particulars
CashPrice

Amount

24,000.00

Sales tax

1,080.00

Painting and Lettering

1,700.00

Total Cost of Truck

26,780.00

Note Accident Insurance

and Motor Vehicle license
are revenue expenses

Hinshaw Company purchased a new machine on October 1, 2014, at a cost of $87,200. The
company estimated that the machine has a salvage value of $8,000. The machine is expected
to be used for 70,200 working hours during its 7-year life. Compute the depreciation expense
under the straight-line method for 2014 and 2015, assuming a December 31 year-end. (Round
answers to 0 decimal places, e.g. 125.)
Depreciation per year using straight line method:
($87,200 - $8000) /7 years
= $11,314.29 per year
In 2014, it was in use for 3 months. So the depreciation allowed is:
($11,314.29)(3 months / 12 months per year) = $2828.57
In 2015,we can depreciate the entire yearly amount of $11,314.29

home / study / business / economics / questions and answers / seger company was organized on january
1. during ...

Question

Seger Company was organized on January 1. During the first

year of operations, the following plant asset expenditures and
receipts were recorded in random order.

Debit
1.Cost of real estate purchased as a plant site (land $262,870
and building $25,230) $ 288,100
2.Installation cost of fences around property 6,960
3.Cost of demolishing building to make land suitable for
construction of new building 24,790
4.Excavation costs for new building 13,780
5.Accrued real estate taxes paid at time of purchase of real
estate 2,449
6.Cost of parking lots and driveways 38,700
7.Architects fees on building plans 35,470
8.Real estate taxes paid for the current year on land 6,628
9.Full payment to building contractor 657,080
$1,073,957
Credit
10.Proceeds from salvage of demolished building $ 12,600
Analyze the transactions using the following table column
headings. Enter the amounts in the appropriate columns. For
amounts in the Other Accounts column, also indicate the
account title. (Please select "Not Applicable" if no
account title is suitable. Enter negative amounts using
either a negative sign preceding the number e.g. -45
or parentheses e.g. (45).)
Totals:
account titles consist of
Land Improvements, not applicable, pre-paid
insurence, licenes expense, property tax expense.
every account needs a title

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Please see the below table for all the required answers

Ite
m

Land

Building

(262,870)

(25,230)

(24,790)

Other
Accounts

(6,960)

(13,780)

(2,449)

(38,700)

(35,470)

8
-

Land
Improvem
ents

Account
Title

(6,628)

Property
Tax

expense

(657,080)

10

12,600

Item 2 - Its a land improvement cost

Item 8 is a property tax which has to be every year
Remaining all items are classified either Land or Building according to their expense
type.

home / study / business / accounting / questions and answers / quinn company sells office equipment on
july 31, ...

Question

Show transcribed image text

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Answer:
Journal Entry:
(b)
Cash Debit $23750
Loss in Disposal of plant Asset Debit $11930
Accumulated Depreciation Debit $45790
Office Equipment Credit $ 81470
Note : Accumulated depreciation shall be taken till the date of sale of
asset = (40950+4840) = $45790
Loss on Disposal of plant Asset = (Cost - Accumulated Dep) - Sale value
= (81470 45790) 23750 =$11930

home / study / business / accounting / questions and answers / quinn company sells office equipment on
july 31, ...

Question

Quinn Company sells office equipment on July 31, 2014, for

$21,200 cash. The office equipment originally cost $88,360
and as of January 1, 2014, had accumulated depreciation of
$41,480. Depreciation for the first 7 months of 2014 is
$4,880. Prepare the journal entries to (a) update depreciation
to July 31, 2014, and (b) record the sale of the equipment.
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Jazz Company purchases a patent for $150,000 on January 2, 2010. Its estimated useful life is
5 years.
(a) Prepare the journal entry to record amortization expense for the first year.

(b) Show how this patent is reported on the balance sheet at the end of the first year.
a) [You have the wrong date on your answer, the rest is right.]
Dec 31
Debit 'Amortization Expense - Patent' $ 30,000

Credit 'Patent' $ 30,000

---------------b) Here's what your missing : I'll show what happens in the Patent account over the year :
. . . . . . . . Patent Account
Date . . . . . . . Amount . . . . . . . . Balance
Jan 2 . . . . . $ 150,000 Dr . . . . $ 150,000 Dr
Dec 31 . . . . $ .30,000 Cr . . . . $ 120,000 Dr
-------------------The year-end amortization adjusting entry reduces the balance sheet 'Patent' account by
$30,000, leaving that account with a year-end balance of $ 120,000 Dr.

Question 1
Suppose Nike, Inc. reported the following plant assets and intangible
assets for the year ended May 31, 2014 (in millions): other plant assets
$961.3; land $242.9; patents and trademarks (at cost) $534.0;
machinery and equipment $2,155.9; buildings $962; goodwill (at cost)
$170.1; accumulated amortization $50.1; and accumulated
depreciation $2,263.
Prepare a partial balance sheet for Nike for these items. (List
Property, Plant and Equipment in order of Land,
Buildings and Equipment.)

home / study / business / accounting / questions and answers / presented here are selected transactions
for pine ...

Question

Presented here are selected transactions for Pine Company for

2014.

Jan
.

Jun
e

De
c.

Retired a piece of machinery that was purchased on January 1, 2004. The

machine cost $71,000 on that date and had a useful life of 10 years with
no salvage value.

3
0

Sold a computer that was purchased on January 1, 2011. The computer

cost $30,000 and had a useful life of 5 years with no salvage value. The
computer was sold for $12,000.

3
1

Discarded a delivery truck that was purchased on January 1, 2009. The

truck cost $33,400 and was depreciated based on an 8-year useful life with
a $3,000 salvage value.

Journalize all entries required on the above dates, including

entries to update depreciation, where applicable, on assets
disposed of. Pine Company uses straight-line depreciation.
(Assume depreciation is up to date as of December 31,
2013.)
Date

Account Titles and Explanation

Accumulated De

Debit
71,000

Equipment

Depreciation Exp

Credit

71,000

3,000

Accumulated De

3,000

(To record depreciation on computer sold)

Cash

12,000

Accumulated De

21,000

Equipment

30,000

Gain on Disposa

Depreciation Exp

Accumulated De

3,800

3,800

(To record depreciation on truck sold)

Loss on Disposa

Accumulated De

Equipment

33,400

Presented below are selected transactions at Ingles Company for 2008.

Journalize all entries required on the above dates, including entries to update depreciation,
where applicable, on assets disposed of. Ingles Company uses straight-line depreciation.
(Assume depreciation is up to date as of December 31, 2007.)
Jan. 1 Retired a piece of machinery that was purchased on January 1, 1998. The machine cost
$62,000 on that date. It had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2005. The computer cost $40,000.
It had a useful life of 5 years with no salvage value. The computer was sold for $14,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2004. The truck cost
$39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

1- Jan 1 08 Accum Depr $62000

Equip $62000
To retire fully depreciated machinery
2- Orig Cost $40000 - $28000 = $12000 Book Value on June 30 08
Calc. $40000/5 = $8000 annual depr.

No of periods in use = 3.5 (2005, 2006, 2007, and 6 months in 2008)

Total depr = $8000 x 3.5 = $28000
June 30 08 Depr Exp $4000
Accum Depr $4000
To record 6 months of current year depreciation
Book value now = $40000 - $28000 = $12000
Sold for $14000 so you have a $2000 gain on sale
June 30 08 Cash $14000
Accum Depr 28000
Gain on Sale $2000
Equip 40000
To record sale of computer on June 30 08
3. Amount of depr taken as of Dec 30 08 = $39000-3000/6 = $6000 annual depr for 5
years (2004, 2005, 2006, 2007, & 2008) = $6000 x 5
= $30000 accum depr as of Dec 30 08. Truck was discarded with $6000 undepreciated
cost remaining so a $6000 loss on disposal occured.
Dec 30 08 Depr Exp $6000
Accum Depr $6000
To record current year depreciation
Dec 30 08 Accum Depr - Truck $30000
Loss on Disposal of Truck 6000
Equip - Truck $36000
To write-off disposal of truck

Oct. 1Acquired a copyright for $200,000.The copyright has a useful

life of 50years.Instructions:(a)Prepare journal entries to record the
transactions above.(b)Prepare journal entries to record the 2012
amortization expense for intangible assets.(c)Prepare the intangible
assets section of the balance sheet at December 31, 2012.(d)Prepare
the note to the financials on Times intangibles as of December 31,
2012.ANSWER:a)2-JanPatents45,000Cash45,000Jan-JunResearch and
Development expense230,000Cash230,0001-SepAdvertising
Expense125,000Cash125,0001-OctCopyright200,000Cash200,000

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b)31-DecAmortization Expense - Patents15,000Patents
(100000*1/10)+(45000*1/9)15,00031Amortization Expense Copyright7,000Copyright(60000*1/10)+(200000*1/50*3/12)7,000c)Int
angible AssetsPatents (100000+45000)(10000+15000)$120,000Copyright (60000+200000)(24000+7000)229,000Total intangible assets$349,000d)The
intangible assets of the company consists of two patents and
twocopyrights. One patent with a total cost of $145,000 is being
amortizedin two segments ($100,000 over 10 years and $45,000 over
9 years); theother patent was obtained at no recordable cost. A
copyright with a costof $60,000 is being amortized over 10 years; the
other copyright with acost of $200,000 is being amortized over 50
years