Intermediate Financial Accounting | Assignment I 1. On January 1, 2017, Lombard Co. sells property for which it had paid $690,000 to Sargent Company, receiving in return Sargent's zero-interest-bearing note for $1,000,000 payable in 5 years. What entry would Lom bard make to record the sale, assuming that Lombard frequently sells similar items of property for a cash sales price of $640,000? 2. Horizon Outfitters Company includes in its trial balance for December 31 an item for Accounts Receivable $789,000. This balance consists of the following items: Due from regular customers...... $523,000 Refund receivable on prior year's income taxes (an established claim).... 15,500 Travel advance to employees.. Loan to wholly owned subsidiary.. Advances to creditors for goods ordered Accounts receivable assigned as security for loans payable. Notes receivable past due plus interest on these notes... Total............ ..22,000 .45,500 ...61,000 .75,000 ..47,000 $789,000 Illustrate how these items should be shown in the balance sheet as of December 31. 3. The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2017, balance sheet. The following information is provided. A. Commercial savings account of $600,000 and a commercial checking account balance of $900,000 are held at First National Bank of Yojimbo. B. Money market fund account held at Volonte Co. (a mutual fund organization) permits Eastwood to write checks on this balance, $5,000,000. C. Travel advances of $180,000 for executive travel for the first quarter of next year (employee to reimburse through salary reduction). D. A separate cash fund of $1,500,000 is restricted for the retirement of long-term debt E. Petty cash fund of $1,000. F. An I.O.U. from Marianne Koch, a company customer, in the amount of $190,000. G. A bank overdraft of $110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank. H. The company has two CDs, each totaling $500,000. These CDs have a maturity of 120 days. I. Eastwood has received a check that is dated January 12, 2018, in the amount of $125,000. J. Eastwood has agreed to maintain a cash balance of $500,000 at all times at First National Bank of Yojimbo to ensure future credit availability. K. Eastwood has purchased $2,100,000 of commercial paper of Sergio Leone Co. due in 60 days. L. Currency and coin on hand amounted to $7,700. Instructions; a) Compute the amount of cash to be reported on Co.'s balance sheet at December 31, 2017. b) Indicate the proper reporting for items that are not reported as cash on the Dec 31, 2017. 4. At the end of 2017, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2018, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off. Instructions; a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable. b) What is the NRV of Aramis Company's A/R before the write-off of the Ramirez receivable? c) What is the NRV of Aramis Company's A/R after the write-off of the Ramirez receivable? 5. Presented below is information related to James Garfield Corp., which sells merchandise with terms 2/10, net 60. Garfield records its sales and receivables net. July 1; James Garfield Corp. sold to Warren Harding Co. merchandise having price of $8,000. July 5. Accounts receivable of $9.000 (gross) are factored with Andrew Jackson Credit Com < О III