explain answer Blossom Company has recorded the following items in its financial records.Cash in bank:Checking account$50,000Money market fund36,000Payroll account26,000Certificate of deposit (matures in 2 months)28,000Certificate of deposit (matures in 12 months)33,000Total cash in bank$173,000Cash in plant expansion fund143,000Cash on hand34,000Highly liquid investmentsPetty cash53,0002,600Receivables from customers122,000Stock investments84,000U.S Treasury bills43,000The highly liquid investments (Commercial Paper) had maturities of 3 months or less when they were purchased. The stockinvestments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years.(a) What amount should Blossom report as "Cash and cash equivalents" on its balance sheet?SUPPORT

Step 1: Calculation of cash and cash equivalents.Cash and Cash…

Answered: Blossom Company has recorded the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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16. Ludwig Company showed the following current assets as year-end: Cash 3,200,000 Accounts Receivable 2,500,000 Inventory 2,000.000 Total Current Assets Z000.000 Cash on hand, including customer postdated check P100,000 and 10U P50,000 500,000 Cash in bank per bank statement (outstanding Check at year-end P200,000) 2.000.000 3,200,000 Total cash What total amount should be reported as current assets? a. 7,700,000 b. 7,450,000 c. 7,400,000 d. 7,500,000
Homestead State Bank has the following financial information. Cash Securities Investments Net Loans Net Premises and Equip. Balance Sheet Deposits Non-Deposit Borrowings" Equity Capital Total Liabilities and Equity 18.33% Total Assets 20.59% 19.70% 18.75% Homestead State Bank Information Table $50 Interest Income $600 Interest Expenses $1200 Non-Interest Income $250 "All purchased funds Use this information to calculate Homestead State Bank's ROE Non-Interest Expenses $2100 Provision for Loan Losses $970 Pre Tax Net Operating Income $800 Security Gains (Losses) $330 Taxes $2100 Net Income Income Statement $420 ($150) $50 ($110) ($60) $160 ($40) ($45) $65
Sheridan Company has recorded the following items in its financial records. Cash in bank: Checking account Money market fund Payroll account Certificate of deposit (matures in 2 months) Certificate of deposit (matures in 12 months) Total cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments U.S Treasury bills $45,000 31.000 21,000 23,000 28,000 Cash and cash equivalents $ $148,000 138,000 29,000 48,000 2,100 117,000 79,000 38,000 The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. (a) What amount should Sheridan report as "Cash and cash equivalents" on its balance sheet?
Normanby Bank has the following balance sheet. Assets ($ million) Liabilities and equity ($ million) Treasury notes 85 Deposits 125 Loans 115 Interbank funds 55 Equity 20 Total assets 200 Total liabilities and equity 200 One of Normanby Bank’s wholesale customers decides to make an immediate deposit withdrawal of $15 million. To fund this withdrawal request, the bank adopts a liability liquidity management approach via the interbank funds market. Which of the following statements is CORRECT? Select one: a. After the transactions, the bank has 140m in deposits, 40m in interbank funds, and total assets remain unchanged. b. After the transactions, the bank has 110m in deposits, 40m in interbank funds, and 170m in total assets. c. After the transactions, the bank has 125m in deposits, 70m in interbank funds, and 215m in total assets. d. After the transactions, the bank has 110m in deposits,…
Study this case and answer question asked below: You have the following quotes from Bank A & Bank B Bank A: Bank B SPOT USD/CHF 1.4650/55 USD/CHF 1.4653/60 3-months 5/10 6-months 10/15 Cash/Spot 1/2 SPOT GBP/USD 1.7645/60 GBD/USD 1.7640/50 3-months 25/20 6-months 35/25 If you want to buy 1 million GBP Spot against CHF you have to pay Minimum Amount you have to pay is a. CHF 2.5866 Million b. CHF 2.5881 Million c. CHF 2.5875 Million d. CHF 2.5863 Million
Consider a bank with the following balance sheet Assets Liabilities Required reserves Excess reserves T-bills Commercial loans $ 9 million Checkable deposits $ million Bank capital $ 44 million $ 52 million $ 100 million $ 10 million The bank makes a loan commitment for $15 million to a commercial customer. Before the commitment, the bank's capital ratio equals%. (Round your response to two decimal places.)
PROOF OF CASH PROBLEM Pacho Enterprises has the following information about cash account Bank balance, beginning ( 11,500.00) Bank receipts ( 125,000.00) Bank wihdrawal ( 50,000.00) Book balance, beginning ( 9,000.00) Deposit in transits last month ( 2,000.00) Deposit in transits this month ( 4,500.00) Total collections during the month ( 32,500.00) Total disbursements during the month ( 49,900.00) Uncleared checks last month ( 5,000.00) Uncleared checks this month ( 7,500.00) Additional information 1 Macho check was debited to our bank account ( 6,600.00) 2 The bank debited our account as service charge for the month ( 1,000.00) 3 Last month bank services charged were not adjusted ( 500.00) 4 Bank credited the loan proceeds net of P5000 as interest ( 95,000.00) 5 The company owned check was returned due to last of signature ( 5,000.00) Required:P A. Proof of cash statement B. Adjusting journal entries
Jane Dear Tractors has cash in bank of $85,000, cash set aside for a plant expansion in a separate account of $105,000, short-term paper that matures in 10 months for $35,000, and a compensating balance of $90,000 at another bank for a long-term loan. How much should be reported under the heading Cash? O $315,000 $190,000 $85,000 $225,000
Nearby Bank has the following balance sheet (in millions): Assets Liabilities and Equity Cash $60 Demand deposits $140 5-year T notes $60 1-year CD $160 30-year mortgages $200 Equity $20 Total Assets $320 Total L and E $320 What is the maturity gap for Nearby Bank?
On December 31, 20X1, Albania Company provided the following data: Cash in bank 3,000,000 Time deposit – 30 days 1,000,000 Money market placement due on June 30, 20X2 2,000,000 Saving deposit in a closed bank 100,000 Sinking fund for bond payable June 30, 20X3 1,500,000 Petty cash fund 20,000 The cash in the bank included a customer check of P200,000 outstanding for 18 months. A check of P250,000 in payment of accounts payable was dated and recorded on December 31, 20X1, but mailed to creditorson January 15, 20X2. Check of P100,000 dated January 31, 20X2, in payment of accounts payable was recorded and mailed December 31, 20X1. The reporting period is the calendar year. Answer: Cash in bank 3,000,000 Customer check outstanding for 18 months (200,000) Undelivered check 250,000 Postdated check delivered 100,000 Collection on January 2020 recorded on December 31, 2019 (450,0000) Adjusted Cash in Bank 2,700,000 Cash in Bank 2,700,000 Time Deposit- 30 DAYS 1,000,000 Petty Cash Fund…
The breakdown of the Cash and Cash Equivalents account of b Corporation as of December 31, 2021 is as follows:Cash on hand 135,000Cash funds 5,450,000Cash in bank 8,900,000Investments 2,400,000Some relevant items related to cash on hand are presented below:• Included in the balance are as follows:o A check received from a customer dated January 5, 2022, P5,000o A customer check dated November 11, 2021, P12,000o A customer check dated February 4, 2021, P5,000o Unused postage stamps, P800o An undelivered check dated December 28, 2021, P24,000• Excluded from the balance are as follows:o A customer check dated December 30, 2021, P10,000o An undelivered check dated December 30, 2021, P8,000o A customer check dated March 31, 2021, P1,000o Money order, P4,500Relevant information regarding the cash funds are as follows:• The petty cash fund balance is at P20,000. As of December 31, 2021, included in the fund are bills and coins forP8,000, and various expense vouchers at P12,000.• Dividend…
The breakdown of the Cash and Cash Equivalents account of b Corporation as of December 31, 2021 is as follows:Cash on hand 135,000Cash funds 5,450,000Cash in bank 8,900,000Investments 2,400,000Some relevant items related to cash on hand are presented below:• Included in the balance are as follows:o A check received from a customer dated January 5, 2022, P5,000o A customer check dated November 11, 2021, P12,000o A customer check dated February 4, 2021, P5,000o Unused postage stamps, P800o An undelivered check dated December 28, 2021, P24,000• Excluded from the balance are as follows:o A customer check dated December 30, 2021, P10,000o An undelivered check dated December 30, 2021, P8,000o A customer check dated March 31, 2021, P1,000o Money order, P4,500Relevant information regarding the cash funds are as follows:• The petty cash fund balance is at P20,000. As of December 31, 2021, included in the fund are bills and coins forP8,000, and various expense vouchers at P12,000.• Dividend…

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