The controller for Wallaby Co. is attempting to determine the amount of cash and cash equivalents to be reported on its December 31, 2015, statement of financial position. The following information s provided. 1. Commercial savings account of £600,000 and a commercial checking account balance of £800,000 are held at First National Bank of Olathe. Money market fund account held at Volonte Co. (a mutual fund organization) permits Wallaby to write checks on this balance, £5,000,000. 2. 3. Travel advances of £180,000 for executive travel for the first quarter next year (employee to reimburse through salary reduction). 4. A separate cash fund in the amount of £1,500,000 is restricted for the retirement of long-term debt. 5. Petty cash fund of £1,000. 6. An I.O.U. from Marianne Koch, a company customer, in the amount of £150,000. 7. A bank overdraft of £110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank. 8. The company has two certificates of deposit, each totaling £500,000. These CDs have a maturity of 120 days. 9. Wallaby has received 10. Wallaby has agreed to maintain a cash balance of £500,000 at all times at First National Bank of Olathe to ensure future credit availability. 11. Wallaby has purchased £2,100,000 of commercial paper of Sergio Leone Co. which is due in 60 days. check that is dated January 12, 2016, in the amount of £125,000. 12. Currency and coin on hand amounted to £7,700. (a) Compute the amount of cash (and cash equivalents) to be reported on Wallaby Co.'s statement of financial position at December 31, 2015. Cash
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
I need all items that should be reported as cash.
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