Determine the total amount that should be included in cash balance at December 31, 2021 Mickey Mouse Corporation included the following items in their general ledger account “Cash"which amounting to P3,050,000 on December 31, 2021:Short-term treasury billsSavings account with BDO, earmarked for an office equipmentdue for delivery in January 2022IOUS from employeeUndeposited checks from customersUndeposited bills and coins received from customersCustomers' checks dated January 2022Travel advancesP10,000820,0007,500200,000100,90025,40010,000Petty cash fund (including expense receipts for P1,500)DAIF checks from customers returned by bank15,00030,000

Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Answered: Mickey Mouse Corporation included the…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 6DQ

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Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?
What is the journal entry to record an NSF check, from J. Smith for 250, that is returned with the bank statement? a. Cash 250 DR; NSF Check 250 CR b. Accounts Receivable 250 DR; Cash 250 CR c. NSF Check 250 DR; Accounts Receivable 250 CR d. Cash 250 DR; Accounts Receivable 250 CR e. Cash 250 DR; Miscellaneous Expense 250 DR
TRESE Co. provided the following information about the composition of its cash on December 31. 2020: ·       Commercial savings account of P600,000 and a commercial checking account balance of P900,000 are held at BPI. ·       Money market fund account held by Citibank that permits Eastern to write checks in this balance, P5,000,000. ·       Travel advances of P180,000 for executive travel for the first quarter of next year (employee to pay through salary deduction) ·       A separate cash fund in the amount of P1,500,000 is restricted for the retirement of long-term assets. ·       Petty cash fund, P10,000 What is the correct amount of cash and cash equivalents TRESE Company should report in its December 31, 2020 statement of financial position?
Taemin Inc. had a checkbook balance on December 31, 2020 of P10,000,000 and held the following items in the safe:·       Check payable to Taemin Inc., dated January 4, 2020, included in the December 31 checkbook balance- P3,000,000·       Check payable to Taemin Inc., deposited December 20 and included in the December 31 checkbook balance but returned by bank on December 30, stamped NSF. The check was redeposited on January 2, 2021 and cleared January 3, 2021- P1,000,000·       Check drawn on Taemin Inc.’s account and payable to contractor, dated and recorded December 31 but not mailed until January 15, 2021- P1,500,000·       Cash on hand - undeposited collections- P500,000·       Change fund- P10,000·       Time deposit for plant expansion- P1,000,000·       Treasury bill- P2,500,000·       Money market placement- P3,000,000·       Postage stamps- P5,000 What is the total amount should be reported as cash on December 31, 2020?
On December 31, 2020, Hunter X Hunter Company reported cash of P12,350,000 which comprised the following: Undeposited collections                                                                                  PhP 500,000 Cash in bank – BDO checking account 3,000,000 Undeposited NSF check received from the customer,             dated December 1, 2020 250,000 Undeposited check from a customer, dated             January 15, 2021 400,000 Cash in bank – BDO fund for payroll 2,000,000 Cash in bank – BDO money market instrument, 90 days 3,000,000 Cash in foreign bank restricted…
Mickey Mouse Corporation reported total cash and cash equivalent of P5,500,000 on December 31, 2021 include the following information:a. Two certificates of deposits, each totaling P500,000. One certificate having a maturity of 120 days and other certificate having a maturity of 90 days. b. A check that is dated January 3,2022 in the amount of P250,000.c. A check that is yet to deliver to the payee until December 31, 2021 amounting to P350,000.d. Currency and coins in hand amounted to P10,500.e. Check payable to Mickey Mouse Corporation amounting to P100,000 was deposited on December 13, but returned by the bank on December 25, stamped “DAIF”. No entry has yet been made to return the return of the check.Mickey Mouse Corporation has agreed to maintain a cash balance of P700,000 in one of its banks at all times to ensure future credit availability (this amount is not legally restricted as to withdrawal and was included in the above balance). How much is the correct amount of cash and…
Suga Corp. had a checkbook balance on December 31, 2021 of P10,000,000 and held the following items in the safe:· Check payable to Suga, dated January 4, 2021, included in the December 31 checkbook balance- P3,000,000· Check payable to Suga, deposited December 20 and included in the December 31 checkbook balance but returned by bank on December 30, stamped NSF. The check was redeposited on January 2, 2022 and cleared January 3, 2022- P1,000,000· Check drawn on Suga’s account and payable to contractor, dated and recorded December 31 but not mailed until January 15, 2022- P1,500,000· Cash on hand - undeposited collections- P500,000· Change fund- P10,000· Time deposit for plant expansion- P1,000,000· Treasury bill- P2,500,000· Money market placement- P3,000,000· Postage stamps- P5,000 What is the total amount should be reported as cash on December 31, 2021?
Hotdog Corp. had a checkbook balance on December 31, 2021 of P10,000,000 and held the following items in the safe:· Check payable to Hotdog, dated January 4, 2021, included in the December 31 checkbook balance- P3,000,000· Check payable to Hotdog, deposited December 20 and included in the December 31 checkbook balance but returned by bank on December 30, stamped NSF. The check was redeposited on January 2, 2022 and cleared January 3, 2022- P1,000,000· Check drawn on Hotdog's account and payable to contractor, dated and recorded December 31 but not mailed until January 15, 2022- P1,500,000· Cash on hand - undeposited collections- P500,000· Change fund- P10,000· Time deposit for plant expansion- P1,000,000· Treasury bill- P2,500,000· Money market placement- P3,000,000· Postage stamps- P5,000 What is the total amount should be reported as cash on December 31, 2021?
On December 31, 2022, the cash account of AA Company shows the following composition: Petty cash fund, P180,000; Cash in bank (payroll fund). P2,000,000, Interest and dividend fund, P250,000; Tax fund, P120,000; Cash in bank (current account). P3,000,000; Certificate of deposit (terms 90 days), P1,000,000; Certificate of deposit (terms 180 days). P1.500,000; Cash in foreign bank-restricted, P500.000; Money market fund, (60 days), P500,000; Money market funds (6 months), P900,000; Customer's check dated February 15, 2021, P60,000: Customer's check dated December 30, 2020 returned for lack of funds, P40,000: A 30-day BSP treasury bill, P1,000,000; A 3-year BSP treasury bill acquired three months prior to maturity, P1 200,000; Sinking fund cash, P800,000,Contingent fund, P900,000 Fund for the acquisition of fixed asset, P500,000, Travelers checks, P60,000, and Cashiers' checks, What is the correct cash and cash equivalents balance to be reported by AA Company on P100,000. December…
Jungkook Company reported a cash balance of P3,310,476 on December 31, 2020. The amount consistsof the following:• Petty cash fund (including expense receipts for P 2,340)- P10,000• Checking account in BDO (outstanding checks at Dec. 31, P26,780)- P286,230• Cash on hand, including a customer’s check of P4,750 dated January 15, 2021- P38,246• Cash in bank, General account, net of P12,000 bank overdraft in another bank’s account- P284,000• Cash in bank, payroll account, net of P 8,500 check dated December 26, but undelivered as ofDecember 31, 2020- P225,000• Sinking fund cash- P1,567,000• Short-term treasury bills- P120,000• Cash surrender value of life insurance- P780,000At what amount should cash and cash equivalents of Jungkook reported on December 31, 2020?
AAA Corporation's checkbook balance on December 31, 2020, was P800,000. In addition, AAA held the following items in its safe on December 31: Check payable to AAA Corporation, dated January 2, 2021, not included in December 31 checkbook balance P200,000 Check payable to AAA Corporation, deposited December 20, and included in December 31 checkbook balance, but returned by bank on December 30, stamped "NSF." The check was redeposited January 2, 2021, and cleared January 7 40,000 Post-dated checks 15,000 Check drawn on AAA Corporation's account, payable to a vendor, dated and recorded December 31, but not mailed until January 15, 2021 100,000 The proper amount to be shown as cash on AAA's balance sheet at December 31, 2020, is

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