Cutting Edge Co. is engaged in a small export business. The company maintains limited records. Most of the company's transactions are summarized in a cash journal; non-cash transactions are recorded by making memo entries. The following are abstracted from the company's records: Accounts receivable, increase Notes receivable, decrease Accounts payable, decrease Notes payable -trade, increase Notes payable - bank, increase Sales return (P200,000 was refunded) Sales discounts P1,480,000 800,000 600,000 800,000 1,200,000 320,000 80000 320,000 140,000 240,000 72,000 1,200,000 1,000,000 6,000,000 4,800,000 Purchase returns (P120,000 was refunded) Purchase discounts Accounts written-off Recovery of accounts written-off Cash sales Cash purchascs Cash received from account customers Cash payment to trade creditors

Cutting Edge Co. is engaged in a small export business. The company maintains limited records. Most of the company's transactions are summarized in a cash journal; non-cash transactions are recorded by making memo entries. The following are abstracted from the company's records: Accounts receivable, increase Notes receivable, decrease Accounts payable, decrease Notes payable -trade, increase Notes payable - bank, increase Sales return (P200,000 was refunded) Sales discounts P1,480,000 800,000 600,000 800,000 1,200,000 320,000 80000 320,000 140,000 240,000 72,000 1,200,000 1,000,000 6,000,000 4,800,000 Purchase returns (P120,000 was refunded) Purchase discounts Accounts written-off Recovery of accounts written-off Cash sales Cash purchascs Cash received from account customers Cash payment to trade creditors

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.1P

See similar textbooks

Similar questions

Gangnam Corp is engaged in a small export business. The company maintain limited records. Most of the company’s transactions are summarized in a cash journal; non cash transactions are recorded by making memo entries. The following are abstracted from the company’s records:· Accounts receivable- P350,000 increase· Accounts payable- P200,000 decrease· Notes payable (Trade)- P150,000 decrease· Sales returns (50,000 was refunded)- P100,000· Sales discounts- P10,000· Purchase return (30,000 was refunded)- P80,000· Purchase discount- P15,000· Accounts written off- P60,000· Cash sales- P350,000· Cash purchases- P150,000· Cash received from account customers- P1,800,000· Cash payment to trade creditors- P1,300,000What is the amount of gross purchase?
Among the transactions of Salem, Inc., were the following. Made payments on accounts payable to merchandise suppliers. Paid the principal amount of a note payable to First State Bank. Paid interest charges relating to a note payable to First State Bank. Issued bonds payable for cash; management plans to use this cash in the near future to expand manufacturing and warehouse capabilities. Paid salaries to employees in the finance department. Collected an account receivable from a customer. Transferred cash from the general bank account into a money market fund. Used the cash received in d, to purchase land and a building suitable for a manufacturing facility. Made a year-end adjusting entry to recognize depreciation expense. At year-end, purchased for cash an insurance policy covering the next 12 months. Paid the quarterly dividend on preferred stock. Paid the semiannual interest on bonds payable. Received a quarterly dividend from an investment in the preferred…
Identify each of the following reconciling items as part of the cash reconciling process as: (A) added to the cash balance per the bank statement, (B) deducted from the cash balance per the bank statement, (C) added to the cash balance per the company's books, (D) deducted from the cash balance per the company's books or (E) not a reconciling item. (Note: none of the transaction reported by bank debit and credit memos have been recorded by the company). Group of answer choices Bank service charges, $210 Outstanding checks, $12,500 Check for $129 incorrectly recorded by the company as $219 Deposit in Transit, $7,500
VKS Company has the following selected accounts with unadjusted balances:· Cash on petty cash fund (including unreplenished expenses with supporting receipts of P12,000)- P75,000· Cash in bank (net of P21,000 account with BPI which has a credit balance due to overdrawn checks)- P245,000· Checks issued (post-dated as of year-end)- P155,000· Checks prepared, recorded but was not delivered to vendor- P120,000 Assuming no other cash items are on hand nor pending clearing and that the post-dated check was not deposit until it was ready for credit with the bank, how much should be included as cash and cash equivalent in the statement of financial position to be presented as of year end?
McIntyre Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account asof December 31 has a credit balance of $1,850, and there is no undeposited cash on hand.(a) Assuming that no errors occurred during journalizingor posting, what caused this unusual balance?(b) Is the $1,850 credit balance in the cashaccount an asset, a liability, owner’s equity, a revenue,or an expense?
Yeontan Company is engaged in a small export business. The company maintain limited records. Most of the company’s transactions are summarized in a cash journal; non cash transactions are recorded by making memo entries. The following are abstracted from the company’s records:· Accounts receivable- P350,000 increase· Accounts payable- P200,000 decrease· Notes payable (Trade)- P150,000 decrease· Sales returns (50,000 was refunded)- P100,000· Sales discounts- P10,000· Purchase return (30,000 was refunded)- P80,000· Purchase discount- P15,000· Accounts written off- P60,000· Cash sales- P350,000· Cash purchases- P150,000· Cash received from account customers- P1,800,000· Cash payment to trade creditors- P1,300,000What is the amount of gross purchase? A. 1,015,000 B. 1,195,000 C. 1,165,000 D. 1,315,000
The following information was available to reconcile Montrose Company's book balance of Cash with its bank statement balance as of October 31, 2023:a. After all posting was completed on October 31, the company's Cash account had a $17,613 debit balance but its bank statement showed a $39.192 balance.b. Cheques #296 for $1,781 and #307 for $17,028 were outstanding on the September 30 bank reconciliation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $1.192 and cheque #321 for $2,670, both written in October, were not among the cancelled cheques returned with the statement.c. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, it was found that cheque #320 for the October rent was correctly written for $4.110 but was erroneously entered in the accounting records as $4,920.d. A credit memo enclosed with the bank statement indicated that there was an electronic…
AMMAH Ventures operates a Petty Cash on the imprest system with a float of GHC600. Reimbursements are made such that cash on hand does not fall below GHC72. Below is a summary of Petty Cash transactions for the period to 31 July, 2017 GH Cedis July 1 Received reimbursement by cheque from cashier 504 July 3 Paid Wages 204 July 5 Paid Rent and Rates 90 July 7 Paid Wages and Salaries 180 July 8 Paid Electricity 51 July 11 Paid for transport 18 July 12 Paid for transport 24 July 13 Paid Wages 108 July 14 Paid Rent and Rates 33 July 15 Paid Wages 132 July 17 Paid Koo Nimo a creditor 110 July 18 Paid for transport 60 July 19 Paid Electricity 15 July 20 Paid K. Ansah a creditor 24 July 21 Paid for transport 21 July 25 Paid Rent and Rates 108 July 29 Paid Wages and Salaries 288 July 31 Paid for transport 84 Required: You are…
ANIMAH Ventures operates a Petty Cash on the imprest system with a float of GHC600. Reimbursements are made such that cash on hand does not fall below GHC72. Below is a summary of Petty Cash transactions for the period to 31 July, 2017.GHCJuly 1 Received reimbursement by cheque from cashier 504July 3 Paid Wages 204July 5 Paid Rent and Rates 90July 7 Paid Wages and Salaries 180July 8 Paid Electricity 51July 11 Paid for transport 18July 12 Paid for transport 24July 13 Paid Wages 108July 14 Paid Rent and Rates 33July 15 Paid Wages 132July 17 Paid Koo Nimo a creditor in full 110July 18 Paid for transport 60July 19 Paid Electricity 15July 20 Paid K. Ansah a creditor 24July 21 Paid for transport 21July 25 Paid Rent and Rates 108July 29 Paid Wages and Salaries 288July 31 Paid for transport 84Required:You are required to write-up the petty cashbook.
he Steamed Egg Company has the following items in its general ledger: Petty cash fund- P5,000; Checking account, Bank of Korea- P290,000; Cash fund legally restricted for short-term borrowings, Bank of Korea- P100,000; Checking account, BPI Bank- P(170,000); Checking account, Metrobank- P49,500. The amount of cash that should be reported in Steamed Egg’s balance sheet as a current asset is:Required to answer.