Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 7.2BE
To determine
International Financial Reporting Standards (IFRS):
IFRS is a set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). It is universally accepted set of standards which states the rules and practice for accounting practice.
To determine: The amount that current assets section of C‘s balance sheet include for cash under IFRS and under U.S. GAAP.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Serial Problem Business Solutions LO P3
Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,266. The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,781 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.
The bank erroneously cleared a $510 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems.
On March 25, the bank statement lists a $49 charge for the safety deposit box. Santana has not yet recorded this expense.
On March 26, the bank statement lists a $113 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense.
On March 31, the bank statement lists $34 interest earned on Business Solutions’s checking account for the month of…
MC49
The following bank reconciliation is presented for the Pony Co. for the month of November, 2020:
Balance per bank statement, 11/30/2020
P180,400
Add: Deposit in transit
P41,500
Erroneous bank charge
15,500
56,500
Subtotal
P236,900
Less: Outstanding Checks
78,200
Balance per books, 11/30/2020
P158,700
Data for the month of December 2020 follow:
Per bank: December deposits/credits — P261,000
December charges/debits — P224,200
Balance, December 31, 2020 — P217,200
All items that were outstanding as of November 30 cleared through the bank in December, including the bank charge. In addition, P25,000 checks were outstanding as of December 31, 2020.
What is the amount of cash disbursements per books in December 2020? (WITH SOLUTION)
a. P146,000
b. P171,000
c. P249,200
d. P249.200
Exercise 7-1 (Algo) Cash and cash equivalents; restricted cash; financial statement effects [LO7-2]
The controller of the Red Wing Corporation is in the process of preparing the company’s 2024 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items are being considered:
Balances in the company’s accounts at the First National Bank; checking $15,500, savings $24,100.
Undeposited customer checks of $7,200.
Currency and coins on hand of $780.
Savings account at the East Bay Bank with a balance of $600,000. This account is being used to accumulate cash for future plant expansion (in 2026).
$45,000 in a checking account at the East Bay Bank. The balance in the account represents a 15% compensating balance for a $300,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2027.
U.S. Treasury bills; 2-month maturity bills totaling $35,000, and…
Chapter 7 Solutions
Intermediate Accounting, 10 Ed
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Distinguish between the gross and net methods of...Ch. 7 - Briefly explain the accounting treatment for sales...Ch. 7 - Explain the typical way companies account for...
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Briefly explain the difference between the income...Ch. 7 - Prob. 7.14QCh. 7 - Is any special accounting treatment required for...Ch. 7 - Explain any possible differences between...Ch. 7 - Prob. 7.17QCh. 7 - What is meant by the discounting of a note...Ch. 7 - What are the key variables that influence a...Ch. 7 - Prob. 7.20QCh. 7 - Prob. 7.21QCh. 7 - (Based on Appendix 7B) Marshall Companies, Inc.,...Ch. 7 - Prob. 7.1BECh. 7 - Prob. 7.2BECh. 7 - Prob. 7.3BECh. 7 - Prob. 7.8BECh. 7 - Prob. 7.9BECh. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Uncollectible accounts; balance sheet approach ...Ch. 7 - Uncollectible accounts; solving for unknown LO75,...Ch. 7 - Prob. 7.16BECh. 7 - Note receivable LO77 On December 1, 2018,...Ch. 7 - Long-term notes receivable LO74 On April 19,...Ch. 7 - Prob. 7.19BECh. 7 - Factoring of accounts receivable LO78 Refer to...Ch. 7 - Prob. 7.21BECh. 7 - Discounting a note LO78 On March 31, Dower...Ch. 7 - Receivables turnover LO78 Camden Hardwares credit...Ch. 7 - Prob. 7.24BECh. 7 - Prob. 7.25BECh. 7 - Prob. 7.26BECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.23ECh. 7 - Factoring of accounts receivable with recourse ...Ch. 7 - Factoring of accounts receivable with recourse...Ch. 7 - Concepts; terminology LO71 through LO78 Listed...Ch. 7 - Prob. 7.29ECh. 7 - Prob. 7.36ECh. 7 - Prob. 7.1PCh. 7 - Prob. 7.2PCh. 7 - Prob. 7.3PCh. 7 - Prob. 7.5PCh. 7 - Prob. 7.1DMPCh. 7 - Real World Case 74 Sales returns; Green Mountain...Ch. 7 - Ethics Case 75 Uncollectible accounts LO75 You...Ch. 7 - Prob. 7.5DMPCh. 7 - Prob. 7.6DMPCh. 7 - Prob. 7.9DMP
Knowledge Booster
Similar questions
- Notes 2022 2021 ASSETS Cash on hand 1,404,561 2,529,876 Statutory deposits with Central Banks 7,508,221 7,045,773 Due from banks 9,178,784 12,425,341 Treasury Bills 8,400,605 4,934,664 Advances 4 56,829,415 55,515,628 Investment securities 5 19,953,780 19,259,501 Investment interest receivable 203,693 205,204 Investment in associated companies 6 62,603 55,961 Premises and equipment 7 3,255,758 3,218,670 Right-of-use assets 8 (a) 398,405 477,858 Intangible assets 9 1,143,560 1,171,222 Pension assets 10 (a) 1,200,717 1,415,216 Deferred tax assets 11 (a) 316,556 246,214 Taxation recoverable 49,290 72,817 Other assets 12 1,071,755 594,950 TOTAL ASSETS 110,977,703 109,168,895 LIABILITIES AND EQUITY LIABILITIES Due to banks 445,410 155,985 Customers’ current, savings and deposit accounts 13 87,586,189 86,609,634 Other fund raising instruments 14 4,461,931 4,618,554 Debt securities in issue 15 1,674,719 1,865,895 Lease liabilities 8 (b) 420,088 482,867 Pension liability 10 (a) 40 25,356…arrow_forwardBalance sheet ($ million) Cash $10 50 Loans Securities 15 Deposit Equity $68 7 The bank is expecting a $15 net deposit drain. Show the bank's balance sheet if: a. The bank purchases liability to offset this expected drain. b. The bank uses the asset side liquidity to finance this expected drain.arrow_forwardNotes 2022 2021ASSETS Cash on hand 1,404,561 2,529,876Statutory deposits with Central Banks 7,508,221 7,045,773Due from banks 9,178,784 12,425,341Treasury Bills 8,400,605 4,934,664Advances 4 56,829,415 55,515,628Investment securities 5 19,953,780 19,259,501Investment interest receivable 203,693 205,204Investment in associated companies 6 62,603 55,961Premises and equipment 7 3,255,758 3,218,670Right-of-use assets 8 (a) 398,405 477,858Intangible assets 9 1,143,560 1,171,222Pension assets 10 (a) 1,200,717 1,415,216Deferred tax assets 11 (a) 316,556 246,214Taxation recoverable 49,290 72,817Other assets 12 1,071,755 594,950 TOTAL ASSETS 110,977,703 109,168,895 LIABILITIES AND EQUITYLIABILITIES Due to banks 445,410 155,985Customers’ current, savings and deposit accounts 13 87,586,189 86,609,634Other fund raising instruments 14 4,461,931 4,618,554Debt securities in issue 15 1,674,719 1,865,895Lease liabilities 8 (b) 420,088 482,867Pension liability 10 (a) 40 25,356Provision for…arrow_forward
- 10:33 W n Learning Objective 6 1. Adjusted Balance $17,580 The May cash records of Donald Insurance follow: Date Cash Receipts May 4 9 14 17 31 Cash Debit $ 4,230 со 520 530 1,950 1,840 Check No. 1416 1417 1418 1419 1420 1421 1422 Cash Payments 424/ 1480 QAA ▶ICO Cash Credit Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: 5G`ll 72% $890 120 630 1,090 1,420 900 670 ||| 0 < :arrow_forward12 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 102 02 BANK CURRENCY DTH 62.000121 02 CERTIFICATES OF FX RECEIVABLES 62.000What transaction does the registration made above belong to?A) Acceptance of the policy by the bankB) Endorsement of the policyC) Returning the policy to the bankD) Payment of the policy by the bankE) Collection of the policy by the bankarrow_forwardMC50 The following bank reconciliation is presented for the Pony Co. for the month of November, 2020: Balance per bank statement, 11/30/2020 P180,400 Add: Deposit in transit P41,500 Erroneous bank charge 15,500 56,500 Subtotal P236,900 Less: Outstanding Checks 78,200 Balance per books, 11/30/2020 P158,700 Data for the month of December 2020 follow: Per bank: December deposits/credits — P261,000 December charges/debits — P224,200 Balance, December 31, 2020 — P217,200 All items that were outstanding as of November 30 cleared through the bank in December, including the bank charge. In addition, P25,000 checks were outstanding as of December 31, 2020. What is the amount of cash receipts per books in December 2020? (WITH SOLUTION) a. P204,500 b. P219,500 c. P246,000 d. P317,500arrow_forward
- MC51 The following bank reconciliation is presented for the Pony Co. for the month of November, 2020: Balance per bank statement, 11/30/2020 P180,400 Add: Deposit in transit P41,500 Erroneous bank charge 15,500 56,500 Subtotal P236,900 Less: Outstanding Checks 78,200 Balance per books, 11/30/2020 P158,700 Data for the month of December 2020 follow: Per bank: December deposits/credits — P261,000 December charges/debits — P224,200 Balance, December 31, 2020 — P217,200 All items that were outstanding as of November 30 cleared through the bank in December, including the bank charge. In addition, P25,000 checks were outstanding as of December 31, 2020. What is the amount of cash balance per books in December 2020? (WITH SOLUTION) a. P257,200 b. P242,200 c. P207,200 d. P192,200arrow_forward12 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 102 02 BANK CURRENCY DTH 62.000121 02 SHARES OF FX RECEIVABLES 62.000What transaction does the above record belong to?A) Acceptance of the policy by the bankB) Endorsement of the policyC) Returning the policy to the bankD) Payment of the policy by the bankE) Collection of the policy by the bankarrow_forwardActivity 1 BANK BOOK List of checks paid by the Bank List of checks issued in the Book Chk No o0100 12,000 Chk No oo101 6,000 Chk No o0101 6,000 Chk No o0102 3,000 Chk No o0105 20,000 Chk No o0103 9.900 Chk No o0103 Chk No 21090 9,900 Chk No o0104 15,000 11,000 Chk No o0105 20,000 BANK воок List of deposits recorded in the List of deposits in the Bank Вook July 4 July 18 July 24 July 28 July 1 13,000 9,000 July 4 9,000 30,000 July 18 30,000 23,000 5.400 Using the answers in activity 1, on Comparison of Bank and Book of ABM Consultancy Services, match by putting a check mark on both items. The first item is answered for your reference. BANK BOOK List of checks paid by the Bank List of checks issued in the Book Chk No. o0100 12,000 Chk No. o0101 6,000 Chk No. 00101 6,000 V Chk No. o0102 3,000 BANK BOOK List of deposits in the Bank List of deposits recorded in the Book July 1 13,000 July 4 9,000 July 4 9,000 July 18 30,000arrow_forward
- 491 1:16 O 38 d. Accounts receivable. 17 These are short-term, highly liquid investments that are so near their maturity that they represent insignificant risk of changes in value due to changes in interest rates. a. Cash and Cash equivalents Treasury bills Treasury notes Cash equivalents b. C. d. 18. Cash in foreign currency is valued at face value. current exchange rate. C. current exchange rate reduced by an allowance for expected decline in peso. d. estimated realizable value. 19. The following were the transactions involving an entity's petty cash fund during the period. July. 1, 20x1 Established P30,000 petty cash fund. July 1 through 21, 20x1 Disbursements: Office supplies expense Transportation expenses P4.200 10,500 Repairs and maintenance 3,000 Miscellaneous expense 9,000 Total P26,700 July 22, 20x1 Total coins and currencies in the petty cash box is P1,500. Replenishment is made. The petty cash fund is not replenished and financial statements are prepared on July 31, 20x1.…arrow_forwardD Question 6 An entity reported the following data on December 31,2019: Cash in bank, net of bank overdraft of 100,000 1200,000 PCF, including unreplenished expenses of 10,000 50,000 Notes receivables 750,000 A/R net customers account with credit balances of 200K 2,000,000 Inventory, excluding unrecorded purchase of 300,000 on account in transit shipped FOB SP on 12/31/19 2500,000arrow_forward50 ________________ are short-term, highly liquid assets that can readily be converted into known amounts of cash and with little risk of price fluctuations. a. Post-dated cheques from customers b. Cash equivalents c. IOUs (Informal letters of a promise to pay a debt) d. Postage stamps on handarrow_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