2 3. 4. 5. The net accounts receivable balance is comprised of the following three items: (a) accounts receivable-debit balances ¥41,600, (b) accounts receivable-credit balances ¥6,400, and (c) allowance for doubtful accounts ¥2,800. Inventory costing ¥4,240 was shipped out on consignment on July 31, 2022. The ending inventory balance does not include the consigned goods. Receivables in the amount of ¥4,240 were recognized on these consigned goods. Equipment had a cost of ¥89,600 and an accumulated depreciation balance of ¥22,400. Income taxes payable of ¥7,200 were accrued on July 31. Blue Ltd., however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance but was offset against the income taxes payable amount. Prepare a corrected classified statement of financial position as of July 31. 2022. from the available information, adjusting the account balances using the additional information. (List Current Assets in reverse order of liquidity) BLUE LTD Statement of Financial Position July 31, 2022 Assets

2 3. 4. 5. The net accounts receivable balance is comprised of the following three items: (a) accounts receivable-debit balances ¥41,600, (b) accounts receivable-credit balances ¥6,400, and (c) allowance for doubtful accounts ¥2,800. Inventory costing ¥4,240 was shipped out on consignment on July 31, 2022. The ending inventory balance does not include the consigned goods. Receivables in the amount of ¥4,240 were recognized on these consigned goods. Equipment had a cost of ¥89,600 and an accumulated depreciation balance of ¥22,400. Income taxes payable of ¥7,200 were accrued on July 31. Blue Ltd., however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance but was offset against the income taxes payable amount. Prepare a corrected classified statement of financial position as of July 31. 2022. from the available information, adjusting the account balances using the additional information. (List Current Assets in reverse order of liquidity) BLUE LTD Statement of Financial Position July 31, 2022 Assets

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.9MCE

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A $115 petty cash fund has cash of $22 and receipts of $83. The journal entry to replenish the account would include a a.debit to Cash for $22. b.credit to Petty Cash for $83. c.credit to Cash for $115. d.debit to Cash Short and Over for $10.
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The following were the transactions involving an entity's petty cash fund during the period. July 1, 20x1 Established $30,000 petty cash fund. July 1 Disbursements: through 21, 20x1 - Office supplies expense - Transportation expenses - Repairs and maintenance - Miscellaneous expense Total $4,200 10,500 3,000 9,000 A. debit to receivable from custodian for $1,800. B. credit to petty cash fund for $28,500. C. total debits to various expense accounts for $26,700. D. credit to cash in bank for $28,500. P26,700 July 22, Total coins and currencies in the petty cash box is $1,500. Replenishment 20x1 is made. 19. The petty cash fund is not replenished and financial statements are prepared on July 31, 20x1. The month-end adjustment to the petty cash fund would not include a
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