Q6: Braden Corporation's bank requires monthly financial statement. On its February 28, 20X1 financial statements, Braden reported total assets of $325,000 and total equity of $65,000. On March 1, 20X1 Braden Corporation borrows $80,000 cash from the local bank and immediately upon receiving the funds: (a) Braden paid $28,000 to their vendor, Express Company, representing the amount owed for a purchase of supplies made on account in December 20X0. (b) Braden paid $20,000 for employee work performed in January and February 20X1. (c) Braden purchased $10,000 of new supplies from Express Company (Braden paid cash since Express is no longer allowing Braden to purchase supplies on account). Consider the company's accounting equation as of March 31st 20X1 and select the answer below that correctly describes the company's total liabilities as of this date (ignoring loan interest): A. $340,000 B. $312,000 C. $292,000 D. $282,000 E. None of the answers provided are correct.

Q6: Braden Corporation's bank requires monthly financial statement. On its February 28, 20X1 financial statements, Braden reported total assets of $325,000 and total equity of $65,000. On March 1, 20X1 Braden Corporation borrows $80,000 cash from the local bank and immediately upon receiving the funds: (a) Braden paid $28,000 to their vendor, Express Company, representing the amount owed for a purchase of supplies made on account in December 20X0. (b) Braden paid $20,000 for employee work performed in January and February 20X1. (c) Braden purchased $10,000 of new supplies from Express Company (Braden paid cash since Express is no longer allowing Braden to purchase supplies on account). Consider the company's accounting equation as of March 31st 20X1 and select the answer below that correctly describes the company's total liabilities as of this date (ignoring loan interest): A. $340,000 B. $312,000 C. $292,000 D. $282,000 E. None of the answers provided are correct.

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 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Similar questions

On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
54. CPA Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables?
Accounting A Corp. required additional cash for its operation and used its accounts receivable to raise such needed cash, as follows: On December 1, 2021, A Corp. assigned on a non-notification basis accounts receivable of P10,000,000 to a bank in consideration for a loan of 60% of the receivables less a 1% service fee on the accounts assigned. A signed a note for the bank loan. On December 31, 2021, A collected assigned accounts of P5,000,000 less discount of P100,000. A remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 2% per month on the loan balance. A received an advance of P400,000 from Job Financial Co. by pledging P500,000 of accounts receivable. The loan is due in five years. On December 31, 2021, A discounted at a bank a customer's P3,000,000, 1 year, 10% note receivable dated April 30, 2021. The bank discounted the note at 15% on the same date.…
Clariza Frozen Goods Inc. opened its business on January 1, 2020. The Company has the following transactions during the year: Sales (cash and credit) during the year amounted P5,000,000. Ninety percent of these were made on credit. • The Company granted discounts to its customers as follows: o 3/10, n/30 o 2/15, n/30 o 1% for all cash customers Cash received from customers (deposited with Jennifer Bank) amounting to P3,425,000 consisted of: v Cash customers v Customers paying within 10 days v Customers paying within 15 days v Customers not availing the discounts P495,000 1,940,000 490,000 500,000 Merchandise returns amounted to P500,000, all related to credit sales. • The Company provided for 2% of its net credit sales as doubtful accounts. Unadjusted balances of some of the Company's accounts as at December 31, 2020 before closing its books are as follows: Cash in bank per ledger - Charles Bank Cash in bank per bank statement - Charles Bank P1,500,000 1,775,000 1,000,000 500,000…
IV. Activities: Prepare a bank reconciliation statement. Write your answer on a separate sheet of paper. Activity 1 The bank statement of the Fast Company shows a balance of P10,000 on 31 January 2015 whereas the company's ledger shows a balance of P8,525. The following reasons have been identified for this discrepancy. 1. An amount of P822 sent to the bank for a deposit on January 31, 2015, does not appear in the bank statement. 2. The following checks issued during January have not yet been cleared by the bank. a. Check No: 201, Issue date: 15 January 2015, Amount; P200. b. Check No: 212, Issue date: 19 January 2015, Amount; P20. c. Check No: 216, Issue date: 25 January 2015, Amount; P610.
49. The accountant of Jepjep Holdings presented the following account balances as of December 31, 2021: Cash in bank – Checking,P2,600,000Cash in bank - Savings, P700,000 Cash on hand, P300,000 Cash in bank – restricted, P2,000,000 Treasury bills, P3,000,000 The restricted cash in bank account is opened specifically for building construction expected to be disbursed in Q1 2022. The cash on hand includes a P100,000 check payable to Jepjep, dated January 5, 2022. The Treasury bills are purchased December 1, 2021 and due on February 28, 2022. If you are the Accountant of Jepjep Holdings, what amount of "cash and cash equivalents" should be reported as of December 31, 2021?
The bank statement for Betty Company indicates a balance of $20,000 on September 30, 2021. After thejournals for September had been posted, the cash account in the depositor's books had a balance of $19,800.The following reconciling items are available to prepare a bank reconciliation for Betty Company.(1)Bank debit memorandum for service charges, $60.() Bank credit memorandum for interest earned, $374.(in) Bank debit memorandum for $170 NSF (not sufficient funds) check from a customer.(iv) Cash sales of $450 had been erroneously recorded in the cash account as $324.(v)A check paid for $980 was erroneously recorded by the bank in the bank statement as $1,530.(vi) Checks outstanding, $1,180.(vi) Deposits in transit not recorded by bank, $700.Required:Prepare the bank reconciliation for Betty Company as of September 30, 2021
Delta Automotive Corporation has the following assets listed in its 12/31/2021 trial balance: Cash in bank—checking account $ 22,500U.S. Treasury bills (mature in 60 days)* 5,000Cash on hand (currency and coins) 1,350U.S. Treasury bills (mature in six months)* 10,000Undeposited customer checks 1,840*Purchased on 11/30/2021 Required:1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2021 balance sheet.2. For each of the items not included in your answer to requirement 1, explain the correct classification of the item.
28. Johnson's cash book showed a debit balance of Sh. 117,010 on 31st March 20X7. His bank statement showed a credit balance of Sh. 38,257 on the same date. A careful examination of the two records revealed that the difference was due to the following; 1. Bank charges amounting to Sh. 1,712. 2. The bank had paid Sh. 5,340 to Johnson's insurance company as per standing order. 3. David who was Johnson's tenant had paid rent Sh. 14,500 direct into Johnson's bank account. 4. Cheques from debtors for Sh. 43,275 deposited by Johnson on 29th March were returned unpaid but no entry had been made in the cash book to record the return. 5. Cheques totaling Sh. 149,088 deposited by Johnson on 30th March were credited by the bank on 2nd April, 2011. 6. Cheques totaling Sh. 134,402 issued by Johnson to his creditors did not appear on the bank statement. One of these cheques for Sh. 6,420 is dated 3rd September 2010. 7. A cheque for Sh. 8,240 issued by Peter another customer at the bank was credited…
ठी = =
Alpha company provided the followinginformation for the month of December: Cash balance per ledger 5,000,000 Cash balance per bank statement 5,500,000 Proceeds of bank loan discounted on December 1 for one year at 14% 516,000 Undeposited collections on December 31300,000 Check of Omega Company had been incorrectly deducted by bank from Alpha Company account 50,000 Check of Alpha Company in payment ofan account payable had been recorded by the depositor as P20,000. The correctamount is 200,000 The ledger account for cash was the only cash account kept by the entity.It included a petty cash account comprised of the following items: Currency and coin 4,000 Supplies 2,000 Transportation 3,000 Postage1,000 Deposit of Omega Company credited by bank to the account of Alpha Company 130,000 Deposit of December 27 omitted from bankstatement 150,000 Outstanding checks 544,000 Requirement: (1) Prepare a bank reconciliation using theadjusted balance approach.(2) Prepare…