In preparing the bank reconciliation at December 31,2002, Castle Company has made available the following data: Balance per bank statement 3,807,500 Deposit in Transit 520,000 Amount erroneously credited by bank to Castle 40,000 Bank service charge for December 7,500 Outstanding checks 675,000 The adjusted cash in bank balance on December 31,2002 is a.3,652,500 b. 3,645,000 c. 3,612,500 d.3,605,000 10. Bell Corp. had the following balances at December 31, 2002: Cash in checking account P 420,000 Cash in money market account 300,000 Treasury bill purchased 12/01/02, maturing 2/28/03 960,000 Treasury bond purchased 3/01/01, maturing 2/28/03 600,000 Bell’s policy is to treat as cash equivalents all highly liquid investments with maturity of three months or less when purchased. What amount should Bell report as cash and cash equivalents in its December 31, 2002 balance sheet? a. 2,280,000 b. 1,680,000 c. 720,000 d. 1,380,000 11. At December 31, 2002, Kent Co. had the following balances in the account it maintains at First City Bank: Checking account#1001 P 525,000 Checking account#2001 ( 30,000) Money market account, 60 days 75,000 90-day certificate of deposit, due 2/28/03 150,000 180-day certificate of deposit, due 3/15/03 240,000 Kent classifies investments with original maturities of three months or less as cash equivalents. In its December 2002 balance sheet, what amount should Kent report as cash and cash equivalents? a. 720,000 b. 750,000 c. 570,000 d. 600,000 Use the following information for the next two questions: On August 1, 20x1, an entity prepays one-year insurance for ₱240,000. 12. If the entity uses the asset method of initial recording, the 20x1 year-end adjusting journal entry will include a. a credit to prepaid insurance for ₱140,000. b. a credit to insurance expense for ₱140,000. c. a credit to prepaid insurance for ₱100,000. d. a debit to prepaid insurance for ₱140,000. 13. If the entity uses the expense method of initial recording, the 20x1 year-end adjusting journal entry will include a. a debit to prepaid insurance for ₱140,000. b. a credit to insurance expense for ₱100,000. c. a debit to prepaid insurance for ₱100,000. d. a debit to insurance expense for ₱140,000.
In preparing the bank reconciliation at December 31,2002, Castle Company has made available the following data:
Balance per bank statement 3,807,500
Deposit in Transit 520,000
Amount erroneously credited by bank to Castle 40,000
Bank service charge for December 7,500
Outstanding checks 675,000
The adjusted cash in bank balance on December 31,2002 is
a.3,652,500 b. 3,645,000 c. 3,612,500 d.3,605,000
10. Bell Corp. had the following balances at December 31, 2002:
Cash in checking account P 420,000
Cash in
Treasury bill purchased 12/01/02, maturing 2/28/03 960,000
Treasury bond purchased 3/01/01, maturing 2/28/03 600,000
Bell’s policy is to treat as cash equivalents all highly liquid investments with maturity of three months or less when
purchased. What amount should Bell report as cash and cash equivalents in its December 31, 2002
a. 2,280,000 b. 1,680,000 c. 720,000 d. 1,380,000
11. At December 31, 2002, Kent Co. had the following balances in the account it maintains at First City Bank:
Checking account#1001 P 525,000
Checking account#2001 ( 30,000)
Money market account, 60 days 75,000
90-day certificate of deposit, due 2/28/03 150,000
180-day certificate of deposit, due 3/15/03 240,000
Kent classifies investments with original maturities of three months or less as cash equivalents. In its December 2002
balance sheet, what amount should Kent report as cash and cash equivalents?
a. 720,000 b. 750,000 c. 570,000 d. 600,000
Use the following information for the next two questions:
On August 1, 20x1, an entity prepays one-year insurance for ₱240,000.
12. If the entity uses the asset method of initial recording, the 20x1 year-end
a. a credit to prepaid insurance for ₱140,000.
b. a credit to insurance expense for ₱140,000.
c. a credit to prepaid insurance for ₱100,000.
d. a debit to prepaid insurance for ₱140,000.
13. If the entity uses the expense method of initial recording, the 20x1 year-end adjusting journal entry will include
a. a debit to prepaid insurance for ₱140,000.
b. a credit to insurance expense for ₱100,000.
c. a debit to prepaid insurance for ₱100,000.
d. a debit to insurance expense for ₱140,000.
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