FINANCIAL ACCOUNTING UDEL W/ACCESS >IB
8th Edition
ISBN: 9781119268444
Author: Kimmel
Publisher: WILEY C
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Question
Chapter 7, Problem 7.12E
(a)
To determine
Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily converted into other types of assets, it is reported as current assets in the assets section as the most liquid asset.
Forms of cash:
- Coins
- Currency or paper money
- Checks
- Money orders
- Traveler’s checks
- Funds in checking accounts
- Funds in savings account
The following items are not considered as cash because they are near-cash items but not cash:
- Certificates of deposit
- Postdated checks
- Non-sufficient fund checks
- IOUs (‘I owe you’)
Cash and cash equivalents: Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents have a maturity period of three months, or less than 3 months. Cash equivalents are reported along with cash in the assets section of the
To determine: The balance of ‘Cash and cash equivalents’ to be reported on the balance sheet of Incorporation W, as at April 30, 2017.
(b)
To determine
To indicate: The accounts and statements where the items which are not included as ‘Cash and Cash equivalents’ in part (a) should be reported
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A new accountant at Splish Brothers Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022.
1.
$86 of currency and coin in a locked box used for incidental cash transactions.
2.
A $11,900 U.S. Treasury bill, due May 31, 2022.
3.
$340 of April-dated checks that Splish Brothers has received from customers but not yet deposited.
4.
An $86 check received from a customer in payment of its April account, but postdated to May 1.
5.
$4,230 in the company’s checking account.
6.
$4,770 in its savings account.
7.
$58 of prepaid postage in its postage meter.
8.
A $26 IOU from the company receptionist.
(a) What balance should Splish Brothers report as its “Cash and cash equivalents” balance at April 30, 2022?
Cash and cash equivalents balance at April 30, 2022
A new accountant at Coronado Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022.
1.
$75 of currency and coin in a locked box used for incidental cash transactions.
2.
A $12,800 U.S. Treasury bill, due May 31, 2022.
3.
$210 of checks that Wyne has received from customers but not yet deposited.
4.
An $93 check received from a customer in payment of its April account, but postdated to May 1.
5.
$2,700 in the company’s checking account.
6.
$5,400 in its savings account.
7.
$83 of prepaid postage in its postage meter.
8.
A $38 IOU from the company receptionist.
(a)What balance should Coronado report as its “Cash and cash equivalents” balance at April 30, 2022?
Cash and cash equivalents balance
$enter the cash and cash equivalents balance in dollars
A new accountant at Wyne Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April 30, 2022.
1. $60 of currency and coin in a locked box used for incidental cash transactions.2. A $10,000 U.S. Treasury bill, due May 31, 2022.3. $260 of checks that Wyne has received from customers but not yet deposited.4. An $85 check received from a customer in payment of its April account, but postdated to May 1.5. $2,500 in the company’s checking account.6. $4,800 in its savings account.7. $75 of prepaid postage in its postage meter.8. A $25 IOU from the company receptionist.
Instructions
a. What balance should Wyne report as its “Cash and cash equivalents” balance at April 30, 2022?b. In what account(s) and in what financial statement(s) should the items not included in “Cash and cash equivalents” be reported?
ProblemsIdentify internal control principles over cash disbursements.
Chapter 7 Solutions
FINANCIAL ACCOUNTING UDEL W/ACCESS >IB
Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 14QCh. 7 - Prob. 15QCh. 7 - Prob. 16QCh. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 20QCh. 7 - Prob. 21QCh. 7 - Prob. 22QCh. 7 - Prob. 23QCh. 7 - Prob. 24QCh. 7 - Prob. 25QCh. 7 - Prob. 26QCh. 7 - Prob. 27QCh. 7 - Prob. 28QCh. 7 - Match each situation with the fraud triangle...Ch. 7 - Prob. 7.2BECh. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - While examining cash receipts information, the...Ch. 7 - Prob. 7.6BECh. 7 - Luke Rove is uncertain about the control features...Ch. 7 - Prob. 7.8BECh. 7 - Prob. 7.9BECh. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Prob. 7.14BECh. 7 - Prob. 7.1DIECh. 7 - Prob. 7.2DIECh. 7 - Prob. 7.3DIECh. 7 - Prob. 7.4ADIECh. 7 - Prob. 7.4BDIECh. 7 - Prob. 7.1ECh. 7 - Prob. 7.2ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.8ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.1APCh. 7 - Prob. 7.2APCh. 7 - Prob. 7.3APCh. 7 - Prob. 7.4APCh. 7 - Prob. 7.5APCh. 7 - Prob. 7.6APCh. 7 - Prob. 7.7APCh. 7 - Prob. 7.8APCh. 7 - Prob. 7CCCPCh. 7 - Prob. 7.1EYCTCh. 7 - Prob. 7.2EYCTCh. 7 - Prob. 7.3EYCTCh. 7 - Prob. 7.4EYCTCh. 7 - Prob. 7.5EYCTCh. 7 - Prob. 7.6EYCTCh. 7 - Prob. 7.7EYCTCh. 7 - Prob. 7.8EYCTCh. 7 - Prob. 7.9EYCTCh. 7 - Prob. 7.10EYCTCh. 7 - Prob. 7.1IFRSCh. 7 - Prob. 7.2IFRS
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