Reference no: EM131876191

Questions -

Q1. In the process of reconciling Marks Enterprises' bank statement for September, Mr. Marks compiles the following information:

Cash balance per company books on September 30	$6,230
Deposits in transit at month-end	$1,390
Outstanding checks at month-end	$710
Bank charge for printing new checks	$90
Note receivable and interest collected by bank on Marks' behalf	$680
A check given to Marks during the month by a customer is returned by the bank as NSF	$570

The adjusted cash balance per the books on September 30 is:

$5,750

$6,820

$4,150

$8,070

$6,250

Q2. The following information is available for Holland Company at December 31:

Money market fund balance	$2,920
Certificate of deposit maturing June 30 of next year	$16,300
Postdated checks from customers	$1,800
Cash in bank account	$23,731
NSF checks from customers returned by bank	$780
Cash in petty cash fund	$330
Inventory of postage stamps	$31
U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year	$11,300

Based on this information, Holland Company should report Cash and Cash Equivalents on December 31 of:

$38,281

$54,581

$40,861

$43,312

$39,301

Q3. The following information is taken from Hogan Company's December 31 balance sheet:

Cash and cash equivalents	$9,919
Accounts receivable	77,922
Merchandise inventories	67,862
Prepaid expenses	5,600
Accounts payable	$16,450
Notes payable	94,138
Other current liabilities	11,000

If net credit sales and cost of goods sold for the current year were $604,000 and $359,700, respectively, the firm's days' sales uncollected for the year is (Use 365 days a year and round your final answer to one decimal place):

41.0 days

47.1 days

159.1 days

68.9 days

79.1 days

Q4. The following information is available for Johnson Manufacturing Company at June 30:

Cash in bank account	$7,955
Inventory of postage stamps	89
Money market fund balance	13,900
Petty cash balance	500
NSF checks from customers returned by bank	1,017
Postdated checks received from customers	766
Money orders	1,757
A nine-month certificate of deposit maturing on December 31 of current year	9,500

Based on this information, Johnson Manufacturing Company should report Cash and Cash Equivalents on June 30 of:

$19,712

$23,372

$22,355

$24,112

$23,461

Q5. If a check correctly written and paid by the bank for $372 is incorrectly recorded in the company's books for $327, how should this error be treated on the bank reconciliation?

Subtract $45 from the bank's balance and add $45 to the book's balance.

Add $45 to the bank's balance.

Subtract $45 from the bank's balance.

Add $45 to the book balance.

Subtract $45 from the book balance.

Q6. On November 19, Hayes Company receives a $26,400, 60-day, 5% note from a customer as payment on his account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year. Do not round intermediate calculations.)

Debit Interest Receivable $66; credit Interest Revenue $66.

Debit Interest Receivable $154; credit Interest Revenue $154.

Debit Interest Revenue $154; credit Interest Receivable $154.

Debit Interest Receivable $220; credit Interest Revenue $220.

Debit Interest Revenue $220; credit Interest Receivable $220.

Q7. MixRecording Studios purchased $8,000 in electronic components from TechCom. MixRecording Studios signed a 90-day, 8% promissory note for $8,000. If the note is dishonored, what is the amount due on the MixRecording Studios? (Use 360 days a year. Do not round intermediate calculations.)

$8,330

$8,160

$8,250

$160

$8,000

Q8. The amount due on the maturity date of a $8,000, 90-day 8%, note receivable is (Use 360 days a year. Do not round intermediate calculations):

$7,360.

$8,000.

$8,640.

$8,160.

$7,840.

Q9. A company factored $55,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a:

Debit to Cash of $55,000, a credit to Factoring Fee Expense of $1,100, and credit to Accounts Receivable of $53,900.

Debit to Cash of $56,100 and a credit to Accounts Receivable of $56,100.

Debit to Cash of $55,000 and a credit to Notes Payable of $55,000.

Debit to Cash of $55,000 and a credit to Accounts Receivable of $55,000.

Debit to Cash of $53,900, a debit to Factoring Fee Expense of $1,100, and a credit to Accounts Receivable of $55,000.

Q10. Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller's $8,400, 90-day, 8% note. What entry should TechCom make on January 15 of the next year when the note is paid? (Use 360 days a year. Do not round intermediate calculations.)

Debit Cash $8,568; credit Notes Receivable $8,568.

Debit Cash $8,568; credit Interest Revenue $28; credit Interest Receivable $140; credit Notes Receivable $8,400.

Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20; credit Notes Receivable $4,800.

Debit Notes Receivable $8,400; debit Interest Receivable $168; credit Sales $8,568.

Debit Cash $8,568; credit Interest Revenue $168; credit Notes Receivable $8,400.