Exercise 2 – 9Hechter Company's checkbook balance as of December 31, 2020 was P1,750,000. On the samedate, Hechter had the following items on its safe, together with 18 blank checks:a. A P70,000 check payable to Hechter Co., dated January 2, 2021 that was included in theDecember 31 checkbook balance.b. A P300,000 check payable to a supplier and drawn on Hechter Co.'s account that was datedand recorded December 31 but not mailed until January 3, 2021.What amount of cash should Hechter Co. report on its December 31, 2020 statement of financialposition?

Name: Exercise 2 – 9Hechter Company's checkbook balance as of December 31,
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Exercise 2 – 9Hechter Company's checkbook balance as of December 31, 2020 was P1,750,000. On the samedate, Hechter had the following items on its safe, together with 18 blank checks:a. A P70,000 check payable to Hechter Co., dated January 2, 2021 th

Solution:- Introduction:- Cash and Cash equivalents includes bills, checks received but not…

Answered: Vhat amount of cash should Hechter Co.…

Business

Accounting

Vhat amount of cash should Hechter Co. report on its December 31, 2020 statement of financio РOsition?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11MC

See similar textbooks

Similar questions

Exercise 4-54 Operating Cycle and Current Receivables a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. The): complete their typical case in 6 months or less and collect from the typical client within 1 additional month. b. Johnstons Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash and any receivables are generally paid by the end of the following month. c. Mortondos is a womens clothing store specializing in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Most sales are on credit and the typical customer pays within 1 month of sale. d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Required: For each of the businesses described above, indicate the length of the operating cycle.
Hawk Enterprises identified the following items on its January,r reconciliaLion that may require adjusting entries: a. A deposit of $1,190 was recorded in Hawks accounting records. but not on the January 31 bank statement. b. A check for $3.31 was outstanding at January 31. c. Included with the bank statement was a check for $560 written by Eagle Corporation. The bank had in error, deducted this check from Hawks account. d. Bank service charges were $371. e. An NSF check written by one of Hawks customers in the amount of $1,150 was returned by the bank with Hawks bank statement. This customer was paying for merchandise originally purchased on account. Required: For each of these five items, prepare an adjusting entry for Hawks jaumai1 if any is required.
Comprehensive (Appendix 3.1) Dawson OConnor is the owner of Miller Island Sales, a distributor of fishing supplies. The following is the balance sheet of the company as of December 31, 2018: Dawson keeps very few records and has asked you to help him prepare the 2019 financial statements for Miller Island Sales. An analysis of the 2019 cash transactions recorded in the companys checkbook indicates deposits and checks as follows: Other information about the company is as follows: 1. Accounts receivable at December 31, 2019; 9,200. 2. Accounts payable at December 31: 3. Salaries payable at December 31, 2019, 1,800. 4. Equipment is depreciated by the straight-line method over a 10-year life. The equipment purchased in 2019 was acquired on July 1. All of the equipment will have zero salvage value at the end of its useful life. 5. Interest payable at December 31. 2019: 140. 6. The company uses a periodic inventory system Inventory at December 31, 2019: 17,400. Required: 1. Prepare a worksheet to summarize the transactions and adjustments of Miller Island Sales for 2019. (Hint: Include debit and credit columns for both transactions and adjustments.) 2. Prepare a 2019 income statement and a balance sheet as of December 31, 2019. (Contributed by Waller A. Parker)
Sales and notes receivable transactions The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3. Loaned 18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10. Sold merchandise on account to Bradford Co., 24,000. The cost of goods sold was 14,400. I3. Sold merchandise on account to Dry Creek Co., 60,000. The cost of goods sold was 54,000. Mar. 12. Accepted a 60-day, 7% note for 24,000 from Bradford Co. on account. 14. Accepted a 60-day, 9% note for 60,000 from Dry Creek Co. on account. Apr. 3. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11. Received from Bradford Co. the amount due on the note of March 12. 13. Dry Creek Co. dishonored its note dated March 14. July 12. Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note. Aug. 1. Received from Trina Gelhaus the amount due on her note of April 3. Oct. 5. Sold merchandise on account, terms 2/10, n/30, to Halloran Co., 13,500. Record the sale net of the 2% discount. The cost of goods sold was 8,100. 15. Received from Halloran Co. the amount of the invoice of October 5, less 2% discount. Instructions Journalize the entries to record the transactions.
Aging of receivables; estimating allowance for doubtful accounts Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Trophy Fish prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 20Y4: The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Wolfe Sports, which is due in the next year. Customer Due Date Balance Adams Sports Flies May 22 5,000 Blue Dun Flies Oct. 10 4,900 Cicada Fish Co. Sept. 29 8,400 Deschutes Sports Oct. 20 7,000 Green River Sports Nov. 7 3,500 Smith River Co. Nov. 28 2,400 Western Trout Company Dec. 7 6,800 Wolfe Sports Jan. 20 4,400 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1% 1-30 days past due 2 31-60 days past due 10 61-90 days past due 30 91-120 days past due 40 Over 120 days past due 80 Instructions 1. Determine the number of days past due for each of the preceding accounts. 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 4. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of 3,600 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?
block c/2019/4 On 31.12.t1, Frieda OHG has trade receivables with a book value of € 35,700, which also includes receivables from Alma AG in the amount of € 11,900 and from Belma AG in the amount of € 5,950 . On 31.12. t0, Frieda OHG had accounted for supposedly secure receivables in the amount of € 23,800 gross. Create the posting records for the following business transactions in year t1: Frieda OHG considers it likely that only 30% of the claim against Alma AG will be received. Insolvency proceedings are opened against Belma AG and an entry rate of 80% is set by the insolvency administrator with regard to the claim of Frieda OHG. It is known from the past that approximately 2% of receivables that are not individually impaired are not paid. Alma AG transfers € 5,950 to Frieda OHG
Problem 3. The books of Marikit’s Service, Inc. disclosed a cash balance of P687,570 on December31, 2020. The bank statement as of December 31 showed a balance of P547,800. Additionalinformation that might be useful in reconciling the two balances follows:a. Check number 748 for P30,000 was originally recorded on the books as P45,000.b. A customer’s note dated September 25 was discounted on October 12. The note wasdishonored on December 29 (maturity date). The bank charged Marikit’s account forP142,650, including a protest fee of P2,650.c. The deposit of December 24 was recorded on the books as P28,950, but it was actually adeposit of P27,000.d. Outstanding check totaled P98,850 as of December 31.e. There were bank service charges for December of P2,100 not yet recorded on the books.f. Marikit’s account had been charged on December 26 for a customer’s NSF for check forP12,960g. Marikit properly deposited P6,000 on December 3 that was not recorded by the bank.h. Receipts of December 31…
IA 9. Problem Solving. A promissory note which is dated October 1, 20A was received from a client for service delivered by the ML Company for P450,500. Its term is 90 days and carries with it an 12% interest. On November 15, 20A, due to financial difficulty, ML company have the client’s promissory note discounted to a C19 Financing even at 18% discount. Pertaining to this transaction alone, compute the net amount of increase in profit assuming the bank was paid by its client on the said due date. Although we assume 360 days a year, use the actual number of days of each month mentioned. Round off final answer to the nearest peso.