Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 6, Problem 7DQ
Summary Introduction
Introduction: Asset means any tangible products which have value to company and helps in company growth or help in benefitting business in future. There are basically two types of assets in the company current assets and fixed assets. Current assets are that type of asset which can be converted into cash in current accounting years. Fixed assets are those who have life for more than one accounting year and deprecation is charged over them.
To determine: Most liquid assets compared to each items mentioned in question.
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Exercise 1-2
The following items are included in the Cash general ledger account of SANTAN
COMPANY as of Dec. 31, 2019:
1. Current account with MBTC
2. Current account with MBTC (overdraft)
3. Petty cash fund (with P350 unreplenished vouchers)
4. Change fund (originally set up by retaining P250 in each
of the five cash registers)
5. Cash in bank established as sinking fund
6. Undeposited cash collections (including one check for
P400 dated Jan. 2, 2020)
7.
Cash deposited with a government agency as bidder's
bonds
8. Cash advances for travelling salesmen
9. Cash in bank (under receivership)
10. Cash for meter deposit with a public utility (Meralco)
Exercise 1-3
P100,000
20,000
1,000
1,230
40,000
REQUIRED:
1. At what amount should cash as a current asset appear in the balance sheet?
2. How will the other accounts be reported?
accounts
5. Change fund
6. Promissory note from cashier with no due date
12,400
7. Currency and coins per count
8. Cash in bank (outstanding checks amounting to…
Chapter 6 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. 6 - List the seven braod principles of internal...Ch. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQ
Ch. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Prob. 5QSCh. 6 - Prob. 6QSCh. 6 - Prob. 7QSCh. 6 - Prob. 8QSCh. 6 - Prob. 9QSCh. 6 - Prob. 10QSCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 1PSACh. 6 - Prob. 2PSACh. 6 - Prob. 3PSACh. 6 - Prob. 4PSACh. 6 - Prob. 1PSBCh. 6 - Prob. 2PSBCh. 6 - Prob. 3PSBCh. 6 - Prob. 4PSBCh. 6 - Prob. 6SPCh. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTNCh. 6 - Prob. 7BTNCh. 6 - Prob. 8BTNCh. 6 - Prob. 9BTN
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Identify the asset from the following? A. Cash and Cash equivalents B. Creditorsarrow_forwardDescribe the types of assetsthat are typically included under the heading “cash and cash equivalents” on the balance sheet.What is a “cash equivalent”?arrow_forwardWhich of the following assertions is relevant to whether the cash balances reflect the true underlying economic value of those assets? a. Existence/occurrence. b. Completeness. c. Rights and obligations. d. Valuation or allocation. e. All of the above.arrow_forward
- How do you decide the liquidity order (what asset come before the other...expenses vs prepaid vs inventory) of current assets?arrow_forwardCurrent assets in order of liquidity are cash, marketable securities, inventory, and accounts receivable. A) True B) False karrow_forwardHow much is the amount of Cash and Cash Equivalents to be presented in the balance sheet? How much from the list above should be presented as part of noncurrent assetsarrow_forward
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