Reference no: EM132994034

Questions -

Q1-A company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were: April $241000 May 142000 June 382000. The cash inflow in the month of June is expected to be

A-$229200.

B-$271800.

C-$283850.

D-$217740.

Q2-Oriole Company developed the following reconciling information in preparing its September bank reconciliation:

Cash balance per bank, 9/30 $46400 Note receivable collected by bank 24700

Outstanding checks 37600

Deposits in transit 19100

Bank service charge 360

NSF check 5090

Using the above information, determine the cash balance per books (before adjustments) for the Oriole Company.

A-$40450.

B-$65500.

C-$62300.

D-$8650.

Q3-The following information was taken from Whispering Winds Corp.'s cash budget for the month June

Beginning cash balance $69500 Cash receipts 92300 Cash disbursements 116100

If the company has a policy of maintaining an end of the month cash balance of $59200, the amount the company would have to borrow is

A-$13500.

B-$23800.

C-$0.

D-$35700.

Q4-Pharoah Company gathered the following reconciling information in preparing its June bank reconciliation:

Cash balance per books, 6/30 $12900 Deposits in transit 930 Notes receivable and interest collected by bank 2260 Bank charge for check printing 60

Outstanding checks 5000

NSF check 450

The adjusted cash balance per books on June 30 is

A-$15580.

B-$14650.

C-$15550.

D-$15160.

Q5-Crane Company gathered the following reconciling information in preparing its August bank reconciliation.

Cash balance per books, 8/31 $33000

Deposits in transit 1100

Bank charge for check printing 110

Outstanding checks 15000

NSF check 1300

Use the following tabular analysis to determine the impact of the required adjustments to Crane's Cash account:

Assets = Liabilities + Stockholders' Equity Cash + Accounts

Rec. = Accounts Payable + Common Stock + Revenue - Misc. Expense

Bal. Cash3300

Accounts Rec 11500

Accounts payable 6600

Aug. 30

Adj. Bal.

A-The adjusted balance of the Cash account is $30490.

B-The adjusted balance of the Cash account is $33000.

C-The adjusted balance of the Cash account is $17290.

D-The adjusted balance of the Cash account is $31590.