BROWN Company keeps limited records. Its assets and liabilities at the beginning and end of the current yearare as follows:BeginningEndingCash in bank30,000P 50,000Accounts receivable, netMerchandise inventory50,00070,000100,00080,000Accounts payableNotes payable - bank40,00020,00020,00025,000Equipment, net80,00060,000During the year, the owner withdrew cash of P120,000 and made additional investment of P50,000. How muchis the net income(loss) for the year

Change in assets = Change in liabilities + Change in equity Change in assets - Change in liabilities…

Answered: BROWN Company keeps limited records.…

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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Vegas company's unadjusted cash balance at Oct 31 is $5,400. The following information is available for bank reconciliation: - outstanding checks, $600 - deposit in transit, $450 - bank service charges, $90 - bank had collected an account receivable for company, $1000 - bank statement included an NSF check written by one of company's customers for $600. What was the adjusted book balance at Oct 31? A, $5,400 B, $5,710 C, $6,910 D, $5,490
JW Company’s cash balance at the end of the month was $4,500. After comparing the company’s records with the monthly bank statement, JW’s accountant identified the following reconciling items: outstanding checks, $800; deposits in transit, $700; bank service charge, $30; NSF check, $200. The cash receipt of the NSF check was previously wrongly recorded by the JW company as $250. What is the adjusted bank balance? (Assumption, no fraud in this case)
The cash account of SWITZER ltd. reported a balance of $2,500 at August 31,2020. Included were the outstanding cheques totalling $900 and on August 31 deposit of $500 that did not appear on the bank statement. The bank statement, which came from HSBC bank, listed on August 31,2020, balance of $3,405. Included in the bank balance was on August 30 collection of $550 on account from a customer who pays the bank directly. The bank statement also shows a $20 service charge, $10 of interest revenue that SWITZER earned on its bank balance and an NSF cheque for $35. Make the company’s journal entries for transactions that arise from the bank reconciliation. Include an explanation with each entry.
The cash account in Cake Company's ledger on December 31, 2023 showed a balance of P5,250,000 which included the following: Petty cash fund-P50,000 Undeposited receipts, including a postdated customer check of P100,000-P1,400,000 Cash in bank-P1,300,000 Cash in sinking fund-P500,000 Vouchers paid out of collections, not yet recorded-P250,000 IOUS signed by employees-P150,000 What total amount should be reported as cash in the December 31, 2023 statement of financial position?
The balance in Happ Incorporated's general ledger Cash account was $14,190 at August 31, before reconciliation. The August 31 balance shown in the bank statement was $12,730. Reconciling items included deposits in transit, $1,360; bank service charges, $150; NSF check written by a customer and returned with the bank statement, $610; outstanding checks, $540; and interest credited to the account during September but not recorded on the company's books, $120. Required: Prepare a bank reconciliation as of August 31 for Happ Incorporated Balance per bank Add: Deduct: Reconciled balance. HAPP INCORPORATED Bank Reconciliation August 31 Balance per books Add: Deduct: Reconciled balance
Duct Company reported the following account balances and related information on December 31, 2019 Cash 3,700,000 Accounts receivable 1,500,000 Allowance for doubtful accounts 200,000 Inventory 2,000,000 Prepaid expenses 300,000 Analysis of cash: Cash in bank 1,300,000 Bank overdraft in another bank 300,000 Cash set aside for plant addition 2,000,000 Petty cash fund 10,000 Cash withheld from wages 190,000 General cash 500,000 The accounts receivable included past due accounts in the amount of P100,000. The account is deemed uncollectible and should be written off. The Inventory included goods held on consignment amounting to P150,000 and goods of P200,000 purchased and received on Dec. 21, 2019. Neither of these items has been recorded as purchases. The prepaid insurance included cash surrender value of life insurance of P50,000. What is the adjusted inventory? a. P2,200,000…
Nickleson Company had an unadjusted cash balance of $9,841 as of May 31. The company’s bank statement, also dated May 31, included a $64 NSF check written by one of Nickleson’s customers. There were $640 in outstanding checks and $200 in deposits in transit as of May 31. According to the bank statement, service charges were $85, and the bank collected an $800 note receivable for Nickleson. The bank statement also showed $9 of interest revenue earned by Nickleson. Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.) Please don't provide imagr based answer..thanku
The cash account shows a balance of $41500 before reconciliation. The bank statement does not include a deposit of $9600 made on the last day of the month. The bank statement shows a collection by the bank of $3950 and a customer's check for $1350 was returned because it was NSF. A customer's check for $1320 was recorded on the books as $1960, and a check written for $323 was recorded as $389. The correct balance in the cash account was O $44674. O $43394. O $43526. O $53126.
Nickleson Company had an unadjusted cash balance of $9,116 as of May 31. The company's bank statement, also dated May 31, included a $92 NSF check written by one of Nickleson's customers. There were $1,078 in outstanding checks and $250 in deposits in transit as of May 31. According to the bank statement, service charges were $100, and the bank collected a $900 note receivable for Nickleson. The bank statement also showed $18 of interest revenue earned by Nickleson. Required Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.) True cash balance
Safari Company has a balance of P100,000 in cash & cash equivalents account as of December 31, 2022. The following items were found to be included in this balance. a. Compensating balance of P5,000 which is legally restricted as to withdrawal b. A negative bank balance of P10,000 from one of its bank accounts from just one bank. c. Plant expansion fund of P25,000 which is expected to be used on January 3, 2023. d. A certified check received from one customer last March 24, 2022. How much is the cash and cash equivalents to be presented in the 2022 Financial Statements?

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