User Account

All Pages

Determining cash balance

Assignment Help Accounting Basics
Reference no: EM131092231

QUESTION1

(Determining Cash Balance) The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2014, balance sheet. The following information is provided.

1. Commercial savings account of $600,000 and a commercial checking account balance of $900,000 are held at First National Bank of Yojimbo.

2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Eastwood to write checks on this balance, $5,000,000.

3. Travel advances of $180,000 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).

4. A separate cash fund in the amount of $1,500,000 is restricted for the retirement of long-term debt.

5. Petty cash fund of $1,000.

6. An I.O.U. from Marianne Koch, a company customer, in the amount of $190,000.

7. A bank overdraft of $110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank.

8. The company has two certificates of deposit, each totaling $500,000. These CDs have a maturity of 120 days.

9. Eastwood has received a check that is dated January 12, 2015, in the amount of $125,000.

10. Eastwood has agreed to maintain a cash balance of $500,000 at all times at First National Bank of Yojimbo to ensure future credit availability.

11. Eastwood has purchased $2,100,000 of commercial paper of Sergio Leone Co. which is due in 60 days.

12. Currency and coin on hand amounted to $7,700.

Instruction

(b) Indicate the proper reporting for items that are not reported as cash on the December 31, 2014, balance sheet. 

QUESTION 2

Suppose your firm buys $1,000 worth of supplies on credit with terms 3/15 n60.

a. If you pay the bill on the 14th day after the purchase, what is the cost of the trade credit you have used for the 14-day period?

b. If you pay the bill on the 50th day after the purchase, what is the cost of the trade credit you have used for the 35-day period after the discount period ended?

Reference no: EM131092231

Questions Cloud

Dr. w.e deming and his contribution : Write A report on  DR. W.E DEMING AND HIS CONTRIBUTION TO THE FIELD OF TQM
Relative error for all cases : Use 1 term, 3 term and 5 term approximation of Taylor’s series to evaluate f(2.5) for function f(x)=ln (x) about the base point x= 1.0. Compute percentage relative error for all cases.
How does his principle of liberty remedy this oversight : how does his principle of liberty remedy this oversight?
What is the mean height : Mr. Zuro finds the mean height of all 14 students in his statistics class to be 68.0 inches. Just as Mr. Zuro finishes explaining how to get the mean, Danielle walks in late. Danielle is 65 inches tall. What is the mean height of the 15 students i..
Determining cash balance : Determining Cash Balance) The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2014, balance sheet. The following information is provided.
Confidence interval for the proportion of adults : An interactive poll found that 356 of 2314 adults aged 18 or older have at least one tattoo. (a) Obtain a point estimate for the proportion of adults who have at least one tattoo.
Describe the type of data you would collect : Describe the type of data you would collect
Certain type of automobile tire : The life (in miles driven) of a certain type of automobile tire is a normal random variable L, with L = 34; 000 and L = 4; 000. (a) What is the probability that such a tire lasts over 40,000 miles?
What information must the sales team provide to the supply : Develop a minimum 6-page paper that examines the topic addressing all questions with at least two references and bibliography.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a production cost report for welding department

Prepare a production cost report for the Welding Department for the month of February.

  Tesla and comparing it to toyota

Need help with an assignment here is the info. Need it put into a power point presentation and the companies we are using are Tesla and comparing it to Toyota. If you have any questions let me know! Thanks. Here is the SIC number for Tesla Motors ..

  Identify the optimal assignments and compute

Identify the optimal assignments and compute total minimum time.

  Assessing materiality and risk

Resources: Assessing Materiality and Risk located on the Week Two Materials page Complete the simulation and prepare a 350-word total (not per question) response to the following questions:

  Interest in a sporting goods store

Leigh, who owns a 50% interest in a sporting goods store, was a material participant in the activity for the last fifteen years. She retired from the sporting goods store at the end of last year and will not participate in the activity in the futu..

  What are the tax consequences to egret and to aqua

that Aqua Corporation is immediately liquidated. In general, what are the tax consequences to Egret and to Aqua of the section 338 election and the liquidation of Aqua?

  Prepare an appropriate journal entry for transaction

Prepare journal entries, if needed, to reflect the dividend declaration, the date of record, and the date of payment - How much was net income for 20X7 and 20X8?

  Arithmetic and geometric average returns

What are the arithmetic and geometric average returns for a stock with annual returns of 5%, 8%, -3%, and 16%?

  In december 2008 dreamvision established its predetermined

in december 2008 dreamvision established its predetermined overhead rate for movies produced during year 2009 by using

  Prepare journal entries on super circuit store''s books

Outstanding certificates were then redeemed by January 15, 2011.

  Determine the direct materials price variance direct

i-time inc produces electronic timepieces. the company uses mini-lcd dispalys for its products. each time piece uses

  Write down a paper of no more than 750 words in which you

write a paper of no more than 750 words in which you discuss the difference between comparative and ratio analysis.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd