Exercise 7-24 (Algo) Factoring of accounts receivable without recourse [LO7-8] Mountain High Ice Cream Company transferred $63,000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,300) less a 3% fee (3% of the total factored amount). Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet > 1 Record the transfer of accounts receivable. Note: Enter debits before credits. Event 1 General Journal Debit Credit

Exercise 7-24 (Algo) Factoring of accounts receivable without recourse [LO7-8] Mountain High Ice Cream Company transferred $63,000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,300) less a 3% fee (3% of the total factored amount). Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet > 1 Record the transfer of accounts receivable. Note: Enter debits before credits. Event 1 General Journal Debit Credit

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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54. CPA Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables?
EB 6. LO 8.6 The bank reconciliation shows the following adjustments. Deposits in transit: $1,698 • Notes receivable collected by bank: $2,500; interest: $145 ● Outstanding checks: $987 • Error by bank: $436 • Bank charges: $70 Prepare the correcting journal entry. .
Accounting A Corp. required additional cash for its operation and used its accounts receivable to raise such needed cash, as follows: On December 1, 2021, A Corp. assigned on a non-notification basis accounts receivable of P10,000,000 to a bank in consideration for a loan of 60% of the receivables less a 1% service fee on the accounts assigned. A signed a note for the bank loan. On December 31, 2021, A collected assigned accounts of P5,000,000 less discount of P100,000. A remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 2% per month on the loan balance. A received an advance of P400,000 from Job Financial Co. by pledging P500,000 of accounts receivable. The loan is due in five years. On December 31, 2021, A discounted at a bank a customer's P3,000,000, 1 year, 10% note receivable dated April 30, 2021. The bank discounted the note at 15% on the same date.…
ACTIVITY 3: BANK RECONCILIATION On Oct. 31, 2021, Dark Co's cash balance per records is P7,450, while the balance per bank statement is P8,510. The following information is determined: a. The bank statement reflects a P780 deposit that is not yet recorded in the books. The deposit pertains to a collection of note receivable with a principal balance of P700; the difference represents the interest on the note b. The bank statement also reflects a P25 withdrawal representing service charges for the month c. Dark Co. erroneously recorded a check drawn for P140 as P410. The check, which is payment for an account payable, cleared the bank at the correct amount. d. Dark Co. erroneously recorded a P910 collection of an amount receivable as P190. The bank statement reflects the correct amount of deposit e. A P1,900 check deposit on Oct. 31 is not yet reflected in the bank statement f. The following checks drawn by Dark Co. are not yet presented to the bank for payment: Check #075 for P325,…
PROBLEM 1 Aljon Company reported the following as of December 31, 2021: Accounts receivables P100,000 Notes receivables 80,000 Allowance for doubtful accounts Installment receivables (normally receivable within 1 to 3 years) Customer's credit balances 27,000 150,000 20,000 Supplier's debit balances Advances to subsidiaries 10,000 35.000 Advances to suppliers 30.000 Advances to affiliates 40.000 Security deposit 85.000 Subscriptions receivable 22.000 How much is the total trade receivables as of December 31, 2021?
BE 7.16/ 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 balance per books, or (4) deducted from balance per books. a.Deposit in transit $5,500. b.Bank service charges $25. c.Interest credited to Horton's account $31. d.Outstanding checks $7,422. e.NSF check returned $377.
*E7.24 (LO 6) (Bank Reconciliation and Adjusting Entries) Angela Lansbury 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 Deduct: Outstanding checks Balance per books 1,540 (2,000) $ 6,540 Month of July Results Per Bank Per Books Balance July 31 $8,650 $9,250 July deposits July checks July note collected (not included in July deposits) July bank service charge 5,000 5,810 4,000 3,100 1,000 15 July NSF check from a customer, returned by the bank (recorded by bank as a charge) 335 Instructions a. Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance. b. Prepare the general journal entry or entries to correct the Cash account.
As on 30 July the Cash book reports a bank balance of RO 4,250, without recording a credit transfer from a customer of RO 7,200 and a standing order payment of RO 4,500. Deposits awaiting clearance were RO 22,400 and the value of cheques yet to be presented on this date was RO 9,480. The bank balance is. a. 19870 b. 14470 c. 5970 overdraft d. 11370 overdraft
EB6. LO 8.6The bank reconciliation shows the following adjustments. Deposits in transit: $1,698 Notes receivable collected by bank: $2,500; interest: $145 Outstanding checks: $987 Error by bank: $436 Bank charges: $70 Prepare the correcting journal entry.
P7-4A Bank Reconciliation On July 31, Sullivan Company’s Cash in Bank account had a balance of $ 8, 112.62. On that date, the bank statement indicated a balance of $ 9, 098.55. A comparison of returned checks and bank advices revealed the following: Deposits in transit July 31, amounted to $3, 358.19. Outstanding checks July 31 totaled $1, 251.12. The bank erroneously charged a $215 check of Solomon Company against the Sullivan bank account. A $15 bank service charge has not yet been recorded by Sullivan Company. Sullivan neglected to record $3,000 borrowed from the bank on a ten percent six-month note. The bank shows the $3, 000 as a deposit. Included with the returned checks is a memo indicating that J. Martin’s check for $640 had been returned NSF. Martin, a customer had sent the check to pay an account of $660 less a $20 discount. Sullivan Company recorded a $107 payment for repairs as $1, 070. Required: Prepare a bank reconciliation for Sullivan Company at July 31. Prepare…
ank Reconciliation and Entries ne cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31,095 on October 31, 20Y6. Comparing the bar emos with the records revealed the following reconciling items: . Checks outstanding totaled $10,125. . A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. E. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. 3. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. e. A check drawn for $320 had been incorrectly charged by the bank as $230. f. Bank service charges for October amounted to $70. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement $ 31,095…
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