Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $6.5 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 6.00 percent payable at maturity. The accounting period ends December 31. how would i make the three journal entires for the statement above

Q: At the end of the month, the bank statement of Dream Company showed a balance of P102,000, service…

A: Cash Account balance = P128,000 Bank statement balance =P102,000 Reconciliation statement should be…

Q: 1.  Calculate the loss rate for each year from 2016 through 2019. Round your answers to three…

A: Formula of loss rate /persentage of uncomfortable Accounts - (Loss from uncomfortable Accounts ( bed…

Q: Francis Equipment Co. closes its books regularly on December 31, but at the end of 2020 it held its…

A: Working capital: Working capital refers to the excess amount of current assets over its current…

Q: Safe Security Doors Ltd. undertakes bank reconciliation at the end of each month before preparing…

A: Ideally cash balance as per cash book and bank balance as per bank statement should reconcile with…

Q: Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at…

A:

Q: Suppose that the company has a balance sheet as follows at the beginning of the year. In that single…

A: Any part or whole of the transaction that impact both sides of the balance sheet i.e. Assets and…

Q: Use the information below to prepare a bank reconciliation for XYZ Company for the month of January.…

A: Solution: Bank reconciliation for XYZ Company for the month of January is as under:

Q: Chai is required to maintain a minimum cash balance of​ $5,000 at the end of each month by the bank.…

A: The sales on the account mean the sale is done on a credit basis. the amount of the credit sales…

Q: The information below is extracted from the books of James Brown for the year ended 31st March,…

A: 1.  Sales Ledger Adjustment A/c   PARTICULARS AMOUNT PARTICULAR AMOUNT         To Balance B/d…

Q: FEUST Company is preparing its bank reconciliation for the month of March and revealed the following…

A: Solution:- Calculation of the adjusted cash in bank balance as follows under:-

Q: If a business collects cash when the gift card is sold, how can gift card sales in December result…

A: Gift cards are mostly sold by a retailer to a buyer for cash. The buyer can then redeem the gift…

Q: Sparks Corporation has a cash balance of $14,100 on April 1. The company must maintain a minimum…

A: Cash balance before borrowings = $14,100 + $59,000 - $68,500 = $4,600

Q: E9-4 (Algo) Recording a Note Payable through Its Time to Maturity with Discussion of Management…

A: Introduction: A journal entry is a record of a business deal in the accounting system of an…

Q: Further checks revealed the following during 2018: • During the financial year a trade debt of…

A: Answer a: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 2014…

A: Percentage of cash sale=100-Credit sale percentage=100-65%=35%

Q: Dante Manufacturing has a cash balance of P8,000 on August 1 of the current year. The company’s…

A: solution given                        Purchases      SalesJanuary          P 142,000     P…

Q: Swifty Equipment Co. closes its books regularly on December 31, but at the end of 2020 it held its…

A: Periodic Inventory Method:-It is a form of inventory valuation where inventory gets updated at the…

Q: Irene & Co. had sales of € 15,000 during 2004, 80% of them on credit and 20% for cash. During the…

A: Accounts receivables:- Accounts receivables shows the money that is due to a firm on goods and…

Q: Taylor Company has a cash balance of Php 7,500 on April 1. The company must maintain a minimum cash…

A: Borrowings are the loan which is taken by the individual to meet its financial requirements. The…

Q: Tiger Trade has the following cash transactions for the period.        Accounts…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: On 1 October 2020, Nduundune had 750,000 in the bank and Sh. 126,000 in hand. During the month he…

A: The cash book is prepared to record the cash and bank transactions for the given period.

Q: On December 1, 2011, the Itami Wholesale Co. is attempting to project cash receipts and…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Many businesses borrow money during periods of increased business activity to finance inventory and…

A: Journal Entries- Mitt Event Particulars Debit Credit 1 Cash Dr. 6,500,000     To Note…

Q: Smith’s Cafe Ltd.’s bank statement for the month of April 2020 showed an ending bank balance of…

A: A bank reconciliation is a statement where the balance of the bank account of the entity is matched…

Q: Suppose Columbia Sportswear Company had accounts receivable of $206,024,000 at the beginning of a…

A: Amount of cash receipts from customers = Beginning Accounts receivable + Sales revenue - Ending…

Q: Many businesses borrow money during periods of increased business activity to finance inventory and…

A: Interest expense till Dec. 31st=6,000,000×8%×212=$80,000

Q: Global Fiter Corp. completed the following petty cash transactions during May and June in 2014 May…

A: Imprest System of Petty Cash The general ledger account Petty Cash will remain inactive at a fixed…

Q: Some data regarding the financial enterprise are as follows; - The company collects its sales 25% in…

A: A cash budget is an estimate of a company's cash flows for a given time span, such as weekly,…

Q: Each business day, on average, a company writes checks totaling $30,000 to pay its suppliers. The…

A: Answer a)

Q: Tidewater Inc., a retailer, provided the following financial information for its most recent fiscal…

A: Cash flow statements are the statements that determines the inflow and outflow of cash from three…

Q: The Alex Thomsen Company is planning to request a line of credit from its bank. The following sales…

A: Budget is a tool which helps a manger to monitoring a business activities. There are many type of…

Q: You are called in to prepare financial statements at December 31, 2016. The following additional…

A: Prepare an income statement for 2016

Q: In performing accounting services for small businesses, you encounter the following situations…

A: Sales taxes payable is a liability. Increase in liabilities should be credited. Increases in…

Q: Many businesses borrow money during periods of increased business activity to finance inventory and…

A: Calculating the value of interest on the note payable at due date. We have,The value of interest =…

Q: On its second year of operations, Victorias Co. thought of expanding its business. In order to…

A: Factoring fee = accounts receivable factored  x 10% = P200000 X 10% = P20,000 Amount retained by…

Q: On January 1, Kale Company has a beginning cash balance of $42,000. During the year, the company…

A: Amount to be borrowed = Desired ending cash balance - Amounts available where, Amounts available =…

Q: Yanie's coffee beans store had accounts receivable of $18,000 at the beginning of the year and…

A: Cash received from customers = Beginning balance of Accounts Receivable + Credit sales during the…

Q: I am having trouble with this problem.  The beginning-of-the-period cash balance for the Travis…

A: Cash is the most liquid asset of the company and it usually has a debit balance. In order to…

Q: Sparks Corporation has a cash balance of $24,100 on April 1. The company must maintain a minimum…

A: Cash balance before borrowings = $24,100 + $49,000 - $68,500 = $4,600

Q: Some data regarding the financial enterprise are as follows; - The company collects its sales 25% in…

A: From the above info we will prepare Cash Budget May to August as…

Q: but at the end of 2015 it held its cash book open so that a more favorable statement of financial…

A: Working capital is determined by deducting current assets from current liabilities. Current ratio is…

Q: The accounting records for Delta Driving School shows a cash balance of $14,134 on February 28,…

A: Bank reconciliation:Bank statement is prepared by bank. The company maintains its own records from…

Q: Clover Company has $12,000 at June 1. Clover also anticipates $30,000 in cash receipts and $34,500…

A: A minimum cash balance enables companies to avoid cash shortages caused by cash outflows exceeding…

Q: Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at…

A: The Cavite branch of Main Corporation is an Independent Branch since the branch carries its own…

Q: ABC Corporation recorded debits of P2,500,000 and credits of P2,450,000 in the Cash in Bank account…

A: The bank reconciliation statement is prepared to adjust the balances of cash book and pass book with…