business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $47,500; amounts due from customers from sales of books, $26,900; equipment, $48,000; amounts owed to publishers for books purchased, $8,000; one-year notes payable to a local bank for $2,850. No dividends were declared or paid to the stockholders during the year.

business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $47,500; amounts due from customers from sales of books, $26,900; equipment, $48,000; amounts owed to publishers for books purchased, $8,000; one-year notes payable to a local bank for $2,850. No dividends were declared or paid to the stockholders during the year.

Name: The following information applies to the questions displayed below.]K
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: The following information applies to the questions displayed below.]Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 cash to start thebusiness and received 4,000 shares of stock. The store completed its f

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The statement of financial position of the Money Company on December 31, 2020 shows cash of P330,820. Thefollowing items were found to comprise this total amount: Checking account in Metrobank, (outstanding check As of year-end totaled P15,200) P105,200 Savings account at Far East Bank 30,800 Petty cash fund (including expense receipts for 250) 1,500 Cash on Hand (undeposited sales receipts) 4,200 Sinking fund cash 35,000 Cash in foreign bank (in equivalent pesos) 65,000 Customers' check on hand: Traveler's check 14,000 Manager's check 23,120 Short-term treasury bills 52,000 Money Company also has on hand a check payable to supplier amounting to P62,000, which has been recorded in the cash disbursement journal in December. REQUIRED: What is the correct amount of cash?
abardeen corporation borrowed 58,000 from the bank on october 1, year 1. The note had a 4 percent annual rate of interest and matured on march 31, year 2. interest and principal were paid in cash on the maturity date. a. what amount of cash did abardeen pay for interest in year 1? b. what amount of interest expense was recognized on the year 1 income statement? c. what amount of total liabilities was reported on december 31, year 1, balance sheet?
The accounting records and bank statement of Orison Supply Store provide the following information at the end of April. The closing 'Cash' account balance was $28,560, and the bank statement shows a closing balance of $32,000. On reviewing the bank statement it is found an account customer has deposited $2,000 into the bank account for a March sale and the monthly insurance premium of $4,500 was automatically charged to the account. Interest of $5,10 was paid by the bank and a bank fee of $50 was charged to the account. A payment of $1,500 to a supplier has been recorded twice in the accounts. After the ,calculation of the "ending reconciled cash balance", what is the balance of the 'cash' account?
Please! help me with this question
Safe Security Doors Ltd. undertakes bank reconciliation at the end of each month before preparing its monthly financial statements. The following information is produced by comparing the cash deposits and withdrawals recorded by the business in July with their bank statement received for the month ending 31 July 2021: The bank statement for the month of July shows a credit balance of $112,250 as at 31 July 2021. Safe Security Doors Ltd.’s cash at bank ledger account has a debit balance of $109,230 at 31 July 2021. $7,850 cash received from a customer Adam on 30 July (invoice no. 211) and $11,045 cash received from another customer Brian on 31 July (invoice no. 213) are recorded in the entity’s accounting record but are not shown in the bank statement. Interest earned on bank account is $85. Cheque no. 112 and 113 are not included in the bank statement. # 112 $ 8,045 # 113 $ 6,950 Bank deducted transaction fees of $15 for an overseas transfer by the entity. Safe Security Doors…
Please show work. On July 1 of the current year, Rio Bravo factored receivables with a carrying value of $250,000 to a local bank. The transfer was made with a recourse of $3000. The bank assesses a finance charge of 3% of the amount of accounts receivable and retains an amount equal to 5% of the accounts receivable (for probable adjustments). The journal entry for this transaction will include which of the following? A. Debit to Recourse Liability of $3,000 B. Debit to Cash of $233,000. C. Debit to Due from Bank of $15,500. D. Debit to Loss on Sale of Receivables of $10,500. E. Mor than one of these.
If Service World has $1,950 cash, $400 of government Treasury bills purchased last month with a six-week maturity, and $940 of cash set aside for legal reasons, how much will the company report on the balance sheet as “Cash and Cash Equivalents”?
For purposes of starting the working capital of Jay Trading on December 31, 2021, the following data are submitted: Cash on Hand and in Bank P 610,000 Petty Cash 6,000 Notes payable 500,000 Accounts Receivable 1,200,000 Merchandise Inventory 1,300,000 Accrued Expenses 90,000 Accounts Payable 650,000 Notes Receivable (collectible annually at P1,000,000 every May 31) 2,000,000 Unearned Rent Income 80,000 How much total current assets should be presented on the statement of financial position of Jay Trading on December 31, 2021?
The cash in bank account of Romeo Co. for april 2020 showed an ending balance of $193947. Deposit in transit on April 30 was $27300. Outstanding checks as of April 30 were $89152.5 including $7500 certified check which the bank has certified on April 27. During the month of April, the bank charged back NSF checks in the amount $5152.5 which 2752.5 had been redeposited by April 20. On April 23, the bank charged Romeo's account $3300 items which have been charged to Rina's Account the error was not detected by the bank. During April, the proceeds from notes collected by the bank for Romeos co was $11322 and bank charges for this services $27 there are not yet recorded by the book. How much is unadjusted balance per bank on April 30? Answ: $253894.5 Romeo company purchased 150000 shares 5% ownership of Blue company on January 14, 2022. Romeo received a share dividend of 8% on March 31, 2022 when the market price of share is $25. On December 14, 2022, Romeo received a cash dividend of $20…
The Richard’s Red Company maintains a checking account at the Bank of the North. The bank statement for the month of October 2024 indicated the following: balance on October 1, 2024 was $32,690, deposits for October totaled $86,000, checks paid in October totaled $75,200, service charges for October totaled $350; October NSF checks totaled $1,600; a monthly loan payment deducted by the bank directly from the company’s bank account totaled $3,400; and the ending balance on October 31, 2024 totaled $38,140. At the end of October 2024, Richard’s accounting records indicated a balance in its checking account of $42,544. October 31st deposits in transit were $4,224, and outstanding checks totaled $5,620. In addition, a check for $500 to purchase office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctly processed the check during October. Assuming the company has no other cash, the amount Richard’s Red would report for cash as a current asset on…
On December 31, 2021, ABC Company presents the following cash and cash equivalents account balance per ledger items: Demand deposit 2,200,000 Undeposited collection 300,000 Time deposit-30 days 500,000 NSF check of customer 20,000 300,000 35-day money market placement due 1/28/2022 45-day commercial papers due 2/4/2022 80,000 Savings deposit in closed bank 50,000 IOU from an employee 150,000 Preferred redemption fund 400,000 Additional information: a) Included in the demand deposit of P2,200,000 was a customer check amounting to P50,000 dated January 25, 2022. b) Also included in the bank deposit is a customer check amounting to P90,000 dated December 31, 2020. The company neglected to encash the check. On December 31, 2021, the customer was informed and he was willing to replace this with a new one. New check is yet to be received from the customer. c) Check of P60,000 dated January 31, 2022 in payment of accounts payable was recorded and mailed December 31, 2021. d) creditors on…
At December 31, 2013, Veto Co. had the following balances in the accounts it maintains at NHI Bank: • Checking account #101 175,000 • Checking account # 201 (10,000) Money market account 25,000 90-day certificate of deposit, due 2/28/14 50,000 • 180-day certificate of deposit, due 3/15/14 80,000 Veto Co. classifies debt securities acquired three months or less before maturity date as cash equivalents. In its December 31, 2013 statement of financial position, what amount should Veto Co. report as cash and cash equivalents?