Delta Automotive Corporation has the following assets listed in its 12/31/2024 trial balance: Cash in bank-checkingaccount $ 34,500 U.S. Treasury bills (mature in 60 days)*Footnote asterisk 7,000 Cash on hand (currency and coins) 2,550 U.S. Treasury bills (mature in six months)*Footnote asterisk 22,000 Undeposited customer checks 3,040 *Footnote asterisk Purchased on 11/30/2024 Required: Determine the correct balance of cash and cash equivalents to bereported in the current asset section of the 2024 balance sheet. For each of the items not included in your answer torequirement 1, select the correct classification of the item.

Cash and cash equivalents are highly liquid assets that can be easily convertible to cash…

Answered: Delta Automotive Corporation has the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Delta Automotive Corporation has the following assets listed in its 12/31/2024 trial balance: Cash in bank—checking account $ 29,500 U.S. Treasury bills (mature in 60 days)* 7,000 Cash on hand (currency and coins) 2,050 U.S. Treasury bills (mature in six months)* 17,000 Undeposited customer checks 2,540 *Purchased on 11/30/2024 Required: Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. For each of the items not included in your answer to requirement 1, select the correct classification of the item.
Delta Automotive Corporation has the following assets listed in its 12/31/2024 trial balance: Cash in bank-checking account U.S. Treasury bills (mature in 60 days)* Cash on hand (currency and coins) U.S. Treasury bills (mature in six months)* Undeposited customer checks *Purchased on 11/30/2024 Required: $ 22,500 5,000 1,350 10,000 1,840 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. 2. For each of the items not included in your answer to requirement 1, select the correct classification of the item. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. Cash and cash equivalents includes: Total Required 1 Required 2 $ 0 For each of the items not included in your answer to requirement 1, select the correct classification of the item.
Delta Automotive Corporation has the following assets listed in its 12/31/2021 trial balance: Cash in bank—checking account $ 22,500U.S. Treasury bills (mature in 60 days)* 5,000Cash on hand (currency and coins) 1,350U.S. Treasury bills (mature in six months)* 10,000Undeposited customer checks 1,840*Purchased on 11/30/2021 Required:1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2021 balance sheet.2. For each of the items not included in your answer to requirement 1, explain the correct classification of the item.
The following information was included in the bank reconciliation for EEE Company for October and November 2020: Checks and charges recorded by bank in November, including a November service charge of P10,000 and NSF check of P50,000 1,375,000 Service charge made by in October and recorded by depositor in November 5,000 Total credits to cash in all journals during November 1,550,000 Customer's NSF check returned in October and redeposited in November (no entry made by depositor in either October or November) 100,000 Outstanding checks on October 31,2020 that cleared in November 575,000 5. What is the total amount of outstanding checks on November 30,2020?
The following information was included in the bank reconciliation for EEECompany for October and November 2020: Checks and charges recorded by bank in November, including a November service charge of P10,000 and NSF check of P50,000 1,375,000 Service charge made by in October and recorded by depositor in November 5,000 Total credits to cash in all journals during November 1,550,000Customer’s NSF check returned in October and redeposited in November (no entry made by depositor in either October or November) 100,000 Outstanding checks on October 31,2020 that cleared in November 575,000 What is the total amount of outstanding checks on November 30,2020? FFF Company had the following bank reconciliation on June 30, 2020:
Chad Corporation for the year ended December 31, 2022, has these balances: Traveler’s check P 150,000 Money orders 90,000 Customer’s not-sufficient-fund check 30,000 Customer’s check dated January 5, 2023 15,000 Current account at Bank of the Philippine Island 6,000,000 Current account at Equitable PCI Bank (300,000) Payroll account 1,500,000 Foreign bank account – restricted (in USD)** 60,000 Postage stamps 3,000 Employee’s postdated check 12,000 IOU from a key officer 30,000 Credit memo from a vendor for a purchase return 60,000 Petty cash fund (P12,000 currency and expense vouchers for P18,000) 30,000 Treasury bills, due 3/31/23 (purchased 12/31/22) 600,000 Treasury bills, due 3/31/23 (purchased 1/1/22) 900,000 Change fund 10,000 Bond sinking fund 1,000,000 Exchange rate as of December 31, 2022 is at P50 for every USD. Average exchange rate is at P45 for every USD.…
KORSTOCKS Company provided the following information on December 31, 2021. Cash on Hand 200,000Philippine Bank Current Account 5,000,000Manila bank current account 4,000,000City Bank current account (bank overdraft) (100,000)Asia Bank savings account for equipment acquisition 250,000Asia Bank Time Deposit, 90 days 2,000,000 Included among the checks drawn by KORSTOCKS against Philippine Bank current account and recorded in December 2021 are:a. check written and dated December 23, 2021 and delivered to payee on January 3, 2022, P 100,000b. check written December 26, 2021, dated January 30, 2022, delivered to payee on December 28, 2021, P 150,000what amount should be reported as cash and cash equivalents on December 31, 2021?a. 11,200,000b. 11,450,000c. 10,950,000d. 11,700,000
Chad Corporation for the year ended December 31, 2022, has these balances: Traveler’s check P 150,000 Money orders 90,000 Customer’s not-sufficient-fund check 30,000 Customer’s check dated January 5, 2023 15,000 Current account at Bank of the Philippine Island 6,000,000 Current account at Equitable PCI Bank (300,000) Payroll account 1,500,000 Foreign bank account – restricted (in USD)** 60,000 Postage stamps 3,000 Employee’s postdated check 12,000 IOU from a key officer 30,000 Credit memo from a vendor for a purchase return 60,000 Petty cash fund (P12,000 currency and expense vouchers for P18,000) 30,000 Treasury bills, due 3/31/23 (purchased 12/31/22) 600,000 Treasury bills, due 3/31/23 (purchased 1/1/22) 900,000 Change fund 10,000 Bond sinking fund 1,000,000 Exchange rate as of December 31, 2022 is at P50 for every USD. Average exchange rate is at P45 for every USD.…
Bailey Corporation for the year ended December 31, 2022, has these balances: Traveler’s check P 150,000 Money orders 90,000 Customer’s not-sufficient-fund check 30,000 Customer’s check dated January 5, 2023 15,000 Current account at Bank of the Philippine Island 6,000,000 Current account at Equitable PCI Bank (300,000) Payroll account 1,500,000 Foreign bank account – restricted (in USD)** 60,000 Postage stamps 3,000 Employee’s postdated check 12,000 IOU from a key officer 30,000 Credit memo from a vendor for a purchase return 60,000 Petty cash fund (P12,000 currency and expense vouchers for P18,000) 30,000 Treasury bills, due 3/31/23 (purchased 12/31/22) 600,000 Treasury bills, due 3/31/23 (purchased 1/1/22) 900,000 Change fund 10,000 Bond sinking fund 1,000,000 Exchange rate as of December 31, 2022 is at P50 for every USD. Average exchange rate is at P45 for every USD.…
MAKE THE NECCESSARY JOURNAL ENTRIES FOR THE FOLLOWINGTRANSACTIONS 4) Bank Credit Memorandum states that , 95.000 TL issued check iscollected from the Bank. 5) 24 month rent contract, Starting 1st April 2020 is signed for384.000 TL. Prepayment is made by half check and half note issued, 6) 25.000 USD is paid ( cash ) by the customer for USD Merchandise sale .Rate is 7.15 TL/USD.
At December 31, 2023, Blanco Company had the following balances in the accounts it maintains at Manila Bank: Checking account # 101 Checking account # 201 Time deposit account - 30 days 90-day treasury bill, due Mar. 1, 2024 Travel fund Cash in sinking fund 180-day treasury bill due Apr. 1, 2024 P2,000,000 (200,000) 350,000 400,000 125,000 500,000 875,000 Blanco Company classifies investments with original maturities of three months or less as cash equivalents. In its December 31, 2023 statement of financial position, what amount should Blanco Company report as cash and cash equivalents?
Jakarta Company provided the following information at month-end: Cash in bank per bank statement P8,000,000 Deposit in transit P1,200,000 Outstanding checks, including a certified check of P200,000 P1,500,000 Amount erroneously credited by the bank to the entity's account P150,000 Note collected by the bank for the entity, including interest of P100,000 P1,100,000 Service charge for the current month P20,000 NSF checks of customers returned by bank P 500,000 Error in recording a check in the book. The correct amount as paid by the bank is P100,000 instead of P200,000 as recorded in…

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