In 2020. Novak Inc. issued 700 shares of $10 par value common stock for land worth $46,300.(a) Prepare Novak's journal entry to record the transaction (Credit account titles are automatically indented when amount is entered. Donot indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationDebit(b) Indicate the effect the transaction has on cash.(c) Indicate how the transaction is reported on the statement of cash flows.Novak Inc.Statement of Cash Flows (Partial)eTextbook and MediaCredit

(a) Preparing the Journal EntryWhen Novak Inc. issued 700 shares of $10 par value common stock in…

Answered: In 2020. Novak Inc. issued 700 shares…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 16P

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Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.
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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.
Odum Corporation’s cash account showed a balance of $17,000 on March 31, 2019. The bank statement balance for the same date indicated a balance of $17,711.55. The following additional information is available concerning Odum’s cash balance on March 31: • Undeposited cash on hand on March 31 amounted to $724.50. • A customer’s NSF check for $175.80 was returned with the bank statement. • A note for $2,000 plus interest of $25 was collected for Odum by the bank during March. The bank notified Odum of this collection on the bank statement. • The bank service charge for March was $15. • A deposit of $960.75 mailed to the bank on March 31 did not appear on the bank statement. The following checks mailed to creditors had not been processed by the bank on March 31: Check # Amount 429 $57.40 432 147.50 433 210.80 434 191.90 A customer check for $149.50 in payment of his account and listed correctly for that amount on the bank statement had been incorrectly…
2.3. Thor Company provided the following data on December 31, 2019: Checkbook balance: 4,000,000 Bank statement balance: 5,000,000 Check drawn on Thor's account, payable to supplier, dated and recorded on December 31, 2019 but not mailed until January 15, 2020: 500,000 Sinking fund cash: 2,000,000 On December 31, 2019, what amount should be reported as "cash" under current assets? a. 4,500,000 b. 5,500,000 c. 3,500,000 d. 6,500,000 ŵ
Provide what is required of the problem correctly.
a. The deposit in transit of Grace Corporation at June 30, 2020 is? b. The outstanding checks of Grace Corporation at June 30, 2020 is? c. The unadjusted cash ledger balance of Grace Corporation at June 30, 2020 is? d. The unadjusted cash bank balance of Grace Corporation at June 30, 2020 is? e. The adjusted cash balance of Grace Corporation at June 30, 2020 is?
1. Tranvia Company revealed the following information on December 31, 2020:Cash in checking account 350,000Cash in money market account 750,000Treasury bill, purchased November 1, 2020maturing January 31, 2021 3,500,000Time deposit purchased December 1, 2020maturing March 31, 2021 4,000,000 What amount should be reported as cash and cash equivalents on December 31, 2020? 2. Affable Company provided the following information at year-end comprising the cashaccount:Cash in bank – demand deposit 5,000,000Cash on hand 400,000Postage stamps unused 5,000Certificate of time deposit 1,500,000Money order 50,000Manager check 100,000Traveler check 1,000,000Postdated customer check 500,000 What total amount should be reported as cash at year end? 3. Thor Company provided the following data on December 31, 2020:Checkbook balance 4,000,000Bank statement balance 5,000,000Check drawn on Thor’s account, payable to supplier,dated and recorded on December 31, 2020 but notmailed until January 31, 2021…
(a)Prepare the bank reconciliation statement for the month of December 2021. (b)Prepare the necessary adjusting journal entries to update the accounting record.
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May you please help me determine the true cash balance for February 28, 2020?
In 2020, Pharoah Inc. issued 1,000 shares of $10 par value common stock for land worth $40,600.(a) Prepare Pharoah’s journal entry to record the transaction. (b) Indicate the effect the transaction has on cash. select an effect DecreaseIncreaseNo Effect (c) Indicate how the transaction is reported on the statement of cash flows.

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