Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 8, Problem 6EA
To determine
Determine the amount of cash and cash equivalents that will be reported on the Company B’s
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- My Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March?arrow_forwardVienna Company provided the following information at the current year-end: Cash in bank, per bank statement …………………………………….….…… . 200,000Petty cash fund ………………………………………………………..…………. 3,000Commercial paper with maturity of 2 months ………………………..…. 55,000 Customer postdated checks ……………………………………………………. 14,000 Plant expansion fund …………………………………………………………….. 150,000Bond sinking fund (Bonds are due in 5 months) ……………………………. 120,000Cash fund for payment of salaries ……………………………………………. 200,000Sales ……………………………………………………………………………..…. 4,250,000 Sales returns and allowance …………………………………………………….. 140,000Accounts receivable …………………………………………………………….. 430,000 Allowance for doubtful accounts before adjustment - debit balance…. … 7,600 Deposit in transit and outstanding checks were P80,000 and P55,000 respectively at year-end. The entity estimated that 10% of the accounts receivable balance will be uncollectible. 1) What amount of cash and cash equivalent should be reported on December 31, 2023? 2)…arrow_forwardAt year-end, Kyo Company reported cash and cash equivalents which comprised the following: Cash on hand PhP 600,000 Demand deposit 3,000,000 Certificate of deposit 2,500,000 Postdated customer check 250,000 Petty cash fund 100,000 Traveler’s check 250,000 Manager’s check 150,000 Money order…arrow_forward
- Taehyung Company reported a balance of P258,000 in its Cash account at the end of the month. There were P120,000 deposits in transit and P90,000 outstanding checks. The bank statement showed a balance of P300,000, service charges of P36,000 and the proceeds of a note collected by the bank for the company. The note had a face value of P90,000. The interest on the note collected by the bank wasarrow_forwardA Company provided the following information at year-end comprising the cash account: Cash in bank – demand deposit account 5,000,000 Money order 50,000 Cash on hand 400,000 Manager check 100,000 Postage stamps unused 5,000 Traveler check 1,000,000 Certificate of time deposit with 3-mo. Maturity 1,500,000 Post-dated customer check 500,000 What total amount should be reported as “cash” at year-end?arrow_forwardAt year-end, Sample has cash of $8,000, current accounts receivable of $40,000, merchandise inventory of $43,200, and prepaid expenses totaling $5,100. Liabilities of $32,000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $840,000. How many days did it take Sample to collect its average level of receivables? (Assume 365 days/year. Round any interim calculations to two decimal places. Round the number of days to the nearest whole number) A. 30 B. 13 C.17 D.15arrow_forward
- As of January 1 of the current year, Grayson Company had accounts receivable of $40,000. The sales for January, February, and March were $120,000, $140,000, and $150,000, respectively. Of each month's sales, 20% are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with the remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of January?arrow_forwardAs of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000, and $150,000, respectively. Of each month's sales, 20% are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with the remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and cash sales) in the month of March? a. $146,800 b. $102,000 c. $74,800 d. $116,800 Please don't provide answer in image format thank youarrow_forwardAs of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000, and $150,000, respectively. Of each month's sales, 20% are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with the remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and cash sales) in the month of March? a - 74,800 b- 102,000 c- 116,800 d- 146,800arrow_forward
- At year-end, Mariz Company reported cash and cash equivalent comprising: cash on hand P 500,000, demand deposit P 4,000,000, certificate of deposit P 2,000,000, post dated customer’s check P 300,000, petty cash fund P 50,000, traveler’s check P 200,000, managers check P100,000 and money order P 150,000. What amount of cash should be reported at year-end?arrow_forwardThe accounting staff of Lambert Company has assembled the following information for the year ended December 31 of the current year. Cash sales $ 726,000 Credit sales 2,500,000 Collections on accounts receivable 2,205,000 Cash transferred from the money market fund to the general bank account 250,000 Interest and dividends received 100,000 Purchases (all on account) 1,800,000 Payments on accounts payable to merchandise suppliers 1,530,000 Cash payments for operating expenses (including payroll) 1,065,000 Interest paid 180,000 Income taxes paid 95,000 Loans made to borrowers 500,000 Collections on loans (excluding receipts of interest) 260,000 Cash paid to acquire plant assets 3,100,000 Book value of plant assets sold 651,300 Loss on sales of plant assets 75,200 Proceeds from issuing bonds payable 2,500,000 Dividends paid 120,000 Cash and cash equivalents, Jan. 1 512,000 Required: a. Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating…arrow_forwardAt year-end, StickStick has cash of $ 22 comma 000$22,000, current accounts receivable of $ 80 comma 000$80,000, merchandise inventory of $ 24 comma 000$24,000, and prepaid expenses totaling $ 5 comma 900$5,900. Liabilities of $ 64 comma 000$64,000 must be paid next year. Assume accounts receivable had a beginning balance of $ 40 comma 000$40,000 and net credit sales for the current year totaled $ 480 comma 000$480,000. How many days did it take StickStick to collect its average level of receivables?arrow_forward
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