The controller of the Red Wing Corporation is in the process of preparing the company's 2024 financial statements. She is trying todetermine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following itemsare being considered:a. Balances in the company's accounts at the First National Bank; checking $13,800, savings $22.400.b. Undeposited customer checks of $5,500.c. Currency and coins on hand of $610.d. Savings account at the East Bay Bank with a balance of $430,000. This account is being used to accumulate cash for future plantexpansion (in 2026).e. $26,000 in a checking account at the East Bay Bank. The balance in the account represents a 20% compensating balance for a$130,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2027.1. U.S. Treasury bills; 2-month maturity bills totaling $18,000, and 7-month bills totaling $23,000.Required:1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balancesheet.2. For each of the items not included in your answer to requirement 1, select the correct classification of the item.Complete this question by entering your answers in the tabs below.Required 1 Required 2Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balancesheet.Cash and cash equivalents includes::Total$0< Required 1Required 2 >

e controller of the Red Wing Corporation is in the process of preparing the company's 2024 financial statements. She is trying to termine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items being considered: a. Balances in the company's accounts at the First National Bank; checking $13,800, savings $22,400 b. Undeposited customer checks of $5,500. c. Currency and coins on hand of $610. d. Savings account at the East Bay Bank with a balance of $430,000. This account is being used to accumulate cash for future plant expansion (in 2026) e. $26,000 in a checking account at the East Bay Bank. The balance in the account represents a 20% compensating balance for a

e controller of the Red Wing Corporation is in the process of preparing the company's 2024 financial statements. She is trying to termine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items being considered: a. Balances in the company's accounts at the First National Bank; checking $13,800, savings $22,400 b. Undeposited customer checks of $5,500. c. Currency and coins on hand of $610. d. Savings account at the East Bay Bank with a balance of $430,000. This account is being used to accumulate cash for future plant expansion (in 2026) e. $26,000 in a checking account at the East Bay Bank. The balance in the account represents a 20% compensating balance for a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

compute for adjusted book balance as on november 30 , adjusted bank receipts for december ; adjusted bank disbursements for December Please show complete solutions.
On July 31, 2022, Metlock Company had a cash balance per books of $6,280.00. The statement from Dakota State Bank on that date showed a balance of $7,830.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $22.00. 2. The bank collected $1,660.00 for Metlock through electronic funds transfer. 3. The July 31 cash receipts of $1,336.30 were not included in the bank statement for July. These receipts were deposited by the company in a night deposit vault on July 31. 4. 5. Company check No. 2480 issued to L. Taylor, a creditor, for $364.00 that cleared the bank in July was incorrectly recorded as a cash payment on July 10 for $346.00. Checks outstanding on July 31 totaled $1,982.10. 6. On July 31, the bank statement showed an NSF charge of $715.00 for a check received by the company from W. Krueger, a customer, on account.
Which of the following can be considered as an effective control of cash?A. One person handles the receipts and disbursements of cash.B. Cash is deposited monthly into a bank.C. There is approval of cash payments.D. A reconciliation of the bank balance with the cash balance is prepared twice a year.
The controller for Sunland Co. is attempting to determine the amount of cash to be reported on its December 31, 2017, balance sheet. The following information is provided. 1. Sunland received a post-dated check from a customer. The check is dated January 1, 2018, in the amount of $48,000. The company has a certificate of deposit of $126,000. The CD matures 120 days after its November 1, 2017 date of 2. origination. Sunland Co. holds a commercial savings account of $426,000 and a commercial checking account balance of $1,200,000 at First National Bank of Alexander. In addition, a bank overdraft of $70,000 existed at year-end in a separate account 3. that the company uses to deposit cash receipts at First National Bank of Alexander. A separate cash fund in the amount of $1,475,000 is set aside for the expansion of the company's New Jersey factory. On December 21, 2017, Sunland Co. purchased $710,000 of commercial paper from Voight, Inc. The commercial paper 5. matures January 14, 2018.…
A new accountant at Skyline Company is trying to identify which of the following amounts should be reported as the current asset Cash and Cash Equivalents in the year-end balance sheet, as at June 30, 2024: Currency and coins totalling $76 in a locked box used for petty cash transactions. A 60-day, $12,900 guaranteed investment certificate, due July 31, 2024. June-dated cheques worth $375 that Skyline has received from customers but not yet deposited. A $104 cheque received from a customer in payment of her June account, but postdated to July 1. A balance of $2,360 in the Royal Bank chequing account. A balance of $4,160 in the Royal Bank savings account. Prepaid postage of $52 in the postage meter. A $110 IOU from the company receptionist. Cash register floats of $330. Over-the-counter cash receipts for June 30 consisting of $540 of currency and coins, $90 of cheques from customers, $550 of debit card slips, and $740 of bank credit card slips. These amounts were processed by the bank…
Please. answer problem 7 No. 1 with solutions. Thank youuu
i need the answer quickly
Your Corporation's unadjusted bank balance at September 30, 2021 is $400. The following information is available for the bank reconciliation. $900 $300. Deposits in transit, $500 Outstanding checks, $300 Bank service charges, $75 Bank collected an accounts receivable for Your Company, NSF check written by one of Your Company's customers, What is Your Company's true cash balance?
49. The accountant of Jepjep Holdings presented the following account balances as of December 31, 2021: Cash in bank – Checking,P2,600,000Cash in bank - Savings, P700,000 Cash on hand, P300,000 Cash in bank – restricted, P2,000,000 Treasury bills, P3,000,000 The restricted cash in bank account is opened specifically for building construction expected to be disbursed in Q1 2022. The cash on hand includes a P100,000 check payable to Jepjep, dated January 5, 2022. The Treasury bills are purchased December 1, 2021 and due on February 28, 2022. If you are the Accountant of Jepjep Holdings, what amount of "cash and cash equivalents" should be reported as of December 31, 2021?
You went for a job interview as an accountant at PKP Bhd. During the interviewing session,you were asked with regards to your ability to do a reconciliation of the bank statement. Inconfirming your ability, the interviewer handed over the following information for 30 June2020:(i) The bank statement balance is RM14,070.(ii) The cash account balance is RM15,141.(iii) Outstanding checks amounted to RM2,145.(iv) Deposits in transit are RM3,060.(v) The bank service charge is RM120.(vi) A check for RM95 for supplies was recorded as RM59 in the ledger.REQUIRED:(a) Prepare the bank reconciliation statement of PKP Bhd for 30 June 2020.
The Cash account of Gate City Security Systems reported a balance of $2,490 at December 31, 2024. There were outstanding checks totaling $1,000 and a December 31 deposit in transit of $300. The bank statement, which came from Tri Cities Bank, listed the December 31 balance of $3,810. Included in the bank balance was a collection of $630 on account from Nicole Lee, a Gate City customer who pays the bank directly. The bank statement also shows a $20 service charge and $10 of interest revenue that Gate City earned on its bank balance. Prepare Gate City's bank reconciliation at December 31. Gate City Security Systems Bank Reconciliation December 31, 2024 Bank: Balance, December 31, 2024 ADD: LESS Adjusted bank balance, December 31, 2024 Book: Balance, December 31, 2024 ADD: LESS Adjusted book balance, December 31, 2024
In the draft accounts for the year ended 31 October 2019 of Thomas P Lee, garage proprietor, the balancE at bank according to the cash book was TZS 894.68 in hand. Subsequently the following discoveries were made: 1) Chegue number 176276 dated 3 September 2019 for TZS 310.84 in favour of GLowe Limited has been correctly recorded in the bank statement, but included in the cash book payments as TZS 301.84. 2) Bank commission charged of TZS 169.56 and bank interest charged of T2S 109.10 have been entered in the bank statement on 23 October 2019, but not included in the cash book. 3) The recently received bank statement shows that a cheque for TZS 29.31 received from TAndrews and credited in the bank statements on 9 October 20X9 has now been dishonored and debited in the bank statement on 26 October 2019. The only entry in the cash book for this chegue records its receipt on 8 October 20X9. 4) Cheque number 177145 for TZS 15.10 has been recorded twice as a credit in the cash book 5)…