FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Concept explainers
Topic Video
Question
8) ABC Company revealed the following information on December 31, 2019:
Cash 3,700,000
Allowance for doubtful accounts (200,000)
Inventory 2,000,000
Prepaid insurance 300,000
Total current assets 7,400,000
Analysis of cash:
Cash in bank 1,300,000
Bank overdraft in another bank (300,000)
Cash set aside for plant addition 2,000,000
Petty cash fund 10,000
Cash withheld from wages 190,000
General cash 500,000
Total cash 3,700,000
The accounts receivable included a past due account in the amount of P100,000. The account is deemed uncollectible and should be written off. The inventory included goods held on consignment amounting to P150,000 and goods of P200,000 purchased and received on December 31, 2019. Neither of these items have been recorded as a purchase. The prepaid insurance included a cash surrender value insurance of P50,000.
- What is the adjusted cash balance?
- What is the adjusted inventory?
- What is the adjusted net realizable value of accounts receivable?
- What total amount should be reported as current assets on December 31, 2019?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Problem 1-13 (AICPA Adapted) Joana Company had the following account balances on December 31, 2020: Petty cash fund Cash on hand Cash in bank- current account Cash in bank -payroll account Time deposit Cash in bank - restricted account for plant addition, expected to be disbursed in early 2021 Cash in sinking fund set aside for bond payable due June 30, 2021 50,000 500,000 4,000,000 1,000,000 2,000,000 | 500,000 1,500,000 The petty cash fund included unreplenished December 2020 petty cash expense vouchers of P5,000 and employee IOU of P5,000. The cash on hand included a P100,000 check payable to the entity dated January 31, 2021. What total amount should be reported as cash and cash equivalents on December 31, 2020? a. 6,940,000 b. 8,940,000 c. 7,940,000 d. 7,440,000 27arrow_forwardMiller Corporation’s December 31, 2019, bank statement showed a $2,041.25 balance. On this date, Miller’s Cash account reflected a $150.90 overdraft. In reconciling these amounts, the following information is discovered: 1. Cash on hand for undeposited sales receipts, December 31, $131.25. 2. Customer NSF check returned with bank statement, $426.20. 3. Cash sales of $625.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank. 4. Note receivable of $2,400.00 and interest of $24 collected by the bank and not recorded on the books. 5. Deposit in transit December 31, $330.00. 6. A customer check for $195.40 in payment of its account was recorded on the books at $945.10. 7. Outstanding checks, $2,030.55. Includes a duplicate check of $63.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account…arrow_forwardHenry Company had the following account balances on December 31, 2015.Petty cash fund P50,000Cash in bank – current account 10,000,000Cash in bank – payroll account 2,000,000Cash on hand 500,000Cash in bank – restricted account for plant additions, expected tobe disbursed in 2016 4,000,000Treasury bills, due February 15, 2016 3,000,000 The petty cash fund includes unreplenished December 2015 petty cash expense vouchers ofP20,000 and employee IOUs of P10,000. The cash on hand includes a P100,000 check payableto Henry dated January 15, 2016. What should be reported as “cash and cash equivalents”on December 31, 2015?arrow_forward
- A new accountant at Oriole 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, 2022. 1. 2. 3. 4. 5. 6. 7. 8. (a) $70 of currency and coin in a locked box used for incidental cash transactions. A $10,000 U.S. Treasury bill, due May 31, 2022. $290 of checks that Wyne has received from customers but not yet deposited. An $91 check received from a customer in payment of its April account, but postdated to May 1. $3,300 in the company's checking account. $5,100 in its savings account. $84 of prepaid postage in its postage meter. A $44 IOU from the company receptionist. What balance should Oriole report as its “Cash and cash equivalents" balance at April 30, 2022? Cash and cash equivalents balance $arrow_forwardA new accountant at Skyline Company is trying to identify which of the following amounts should be reported as the current asset Cash and Cash Equivalents in the year-end balance sheet, as at June 30, 2024: Currency and coins totalling $76 in a locked box used for petty cash transactions. A 60-day, $12,900 guaranteed investment certificate, due July 31, 2024. June-dated cheques worth $375 that Skyline has received from customers but not yet deposited. A $104 cheque received from a customer in payment of her June account, but postdated to July 1. A balance of $2,360 in the Royal Bank chequing account. A balance of $4,160 in the Royal Bank savings account. Prepaid postage of $52 in the postage meter. A $110 IOU from the company receptionist. Cash register floats of $330. Over-the-counter cash receipts for June 30 consisting of $540 of currency and coins, $90 of cheques from customers, $550 of debit card slips, and $740 of bank credit card slips. These amounts were processed by the bank…arrow_forwardJohnson Company had the following balances on December 31, 2019: Cash in checking account 250,000 Cash in money market account 500,000 Treasury bill, purchased November 1, 2019 maturing January 31, 2020 4,500,000 Time deposit purchased December 1, 2019 maturing March, 31, 2020 3,000,000 What amount should be reported as “cash and cash equivalents” on Dec. 31, 2019?arrow_forward
- The controller for Pharoah Company is trying to determine the amount of cash to report on the December 31, 2020 statement of financial position. The following information is provided: 1. A commercial savings account with $660,000 and a commercial chequing account balance of $880,000 are held at First National Bank. There is also a bank overdraft of $37,000 in a chequing account at the Royal Scotia Bank. No other accounts are held at the Royal Scotia Bank. 2. Pharoah has agreed to maintain a cash balance of $93,000 at all times in its chequing account at First National Bank to ensure that credit is available in the future. 3. Pharoah has a $6-million investment in a Commercial Bank of Montreal money-market mutual fund. This fund has chequing account privileges. 4. There are travel advances of $25,000 for executive travel for the first quarter of next year. (Employees will complete expense reports after they travel.) 5. A separate cash fund in the amount of $1.0…arrow_forwardBank Reconciliation and Adjusting Entries (Appendix 6.1) Odum Corporation’s cash account showed a balance of $17,198 on March 31, 2019. The bank statement balance for the same date indicated a balance of $17,924.55. The following additional information is available concerning Odum’s cash balance on March 31: • Undeposited cash on hand on March 31 amounted to $724.50. • A customer’s NSF check for $173.80 was returned with the bank statement. • A note for $2,000 plus interest of $25 was collected for Odum by the bank during March. The bank notified Odum of this collection on the bank statement. • The bank service charge for March was $15. • A deposit of $951.75 mailed to the bank on March 31 did not appear on the bank statement. The following checks mailed to creditors had not been processed by the bank on March 31: #429 $57.40 #432 $147.50 #433 $214.80 #434 $191.90 A customer check for $149.50 in payment of his account and listed correctly for that amount on the bank state-ment had…arrow_forwardhow do I solve this?arrow_forward
- 49. The accountant of Jepjep Holdings presented the following account balances as of December 31, 2021: Cash in bank – Checking,P2,600,000Cash in bank - Savings, P700,000 Cash on hand, P300,000 Cash in bank – restricted, P2,000,000 Treasury bills, P3,000,000 The restricted cash in bank account is opened specifically for building construction expected to be disbursed in Q1 2022. The cash on hand includes a P100,000 check payable to Jepjep, dated January 5, 2022. The Treasury bills are purchased December 1, 2021 and due on February 28, 2022. If you are the Accountant of Jepjep Holdings, what amount of "cash and cash equivalents" should be reported as of December 31, 2021?arrow_forwardBank reconciliation and entriesThe cash account for Coastal Bike Co. at October 1, 2019, indicated abalance of $5,140. During October, the total cash deposited was $39,175,and checks written totaled $40,520. The bank statement indicated abalance of $8,980 on October 31, 2019. Comparing the bank statement,the canceled checks, and the accompanying memos with the recordsrevealed the following reconciling items: A. Checks outstanding totaled $5,560.B. A deposit of $1,050 representing receipts of October 31 had beenmade too late to appear on the bank statement.C. The bank had collected for Coastal Bike Co. $2, 120 on a note leftfor collection. The face of the note was $2,000. D. A check for $370 returned with the statement had beenincorrectly charged by the bank as $730.E. A check for $310 returned with the statement had been recordedby Coastal Bike Co. as $130. The check was for the payment of anobligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $25.G. A…arrow_forwardThe breakdown of the Cash and Cash Equivalents account of b Corporation as of December 31, 2021 is as follows:Cash on hand 135,000Cash funds 5,450,000Cash in bank 8,900,000Investments 2,400,000Some relevant items related to cash on hand are presented below:• Included in the balance are as follows:o A check received from a customer dated January 5, 2022, P5,000o A customer check dated November 11, 2021, P12,000o A customer check dated February 4, 2021, P5,000o Unused postage stamps, P800o An undelivered check dated December 28, 2021, P24,000• Excluded from the balance are as follows:o A customer check dated December 30, 2021, P10,000o An undelivered check dated December 30, 2021, P8,000o A customer check dated March 31, 2021, P1,000o Money order, P4,500Relevant information regarding the cash funds are as follows:• The petty cash fund balance is at P20,000. As of December 31, 2021, included in the fund are bills and coins forP8,000, and various expense vouchers at P12,000.• Dividend…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education