Please correct answer and don't used hand raiting Madison Corner writes 43 checks a day for an average amount of $549 each. These checksgenerally clear the bank 2.75 days after they are written. In addition, the firm generallyreceives 80 checks with an average amount of $640 each. Deposited amounts are availableafter an average of 2.25 days. What is the amount of the firm's collection float? $23,607 $50,281 $115,200 $51,200 $64,919

The problem involves the determination of the collection float. The float is essentially…

Answered: Madison Corner writes 43 checks a day…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

On a typical day, a company writes 48 checks worth a total of $8,925 that clear in 3 days. The company also collects 60 checks worth a total of $9,940 that clear in 2.5 days. Is this a collection or disbursement float? What is the amount of the float?
25. You are doing the bank reconcilement. The company wrote 30 checks this month and all have cleared the bank except for three checks totaling $43,908. How would this be handled on the bank reconcilement?
Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end of May, the general ledger checking account showed a balance of $1,480 and the bank statement showed a bank balance of $1,325. Outstanding checks totaled $410 and deposits in transit were $210. The bank statement listed service charges of $90 and NSF checks totaling $265. The corrected cash balance is: Multiple Choice $860. $770. $1,325.
there were deposits in transit amounting to P20,000 and outstanding checks totaling P42,500. The bank statement for among its recelpts. Included on the bank debits were cost of checkbooks amounting to P300 and a P10,000 check The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank credits in November was marked "DAIF for P6,000. On December 31, 20X6 the company placed with the bank a customer's promissory note December showed total receipts of P183,900, disbursements of P101,800 and a balance of P121,400. Bank debit a customer's note for P25,000 collected for the account of the company which the company recognized in December PROOF OF CASH PROBLEM 4. In the process of your examination of the financial statements of the Mehsoy Company for the year ended December 31. 20X6, you obtained the following data on its curent account which was charged by the bank in error against Malu-ov Compeny accOunt, Alao in November, you ascertained er the month of December…
In the month of April, Mazaya Company Inc. wrote checks in the amount of R.O.18,500. In May, checks in the amount of R.O.25.316 were written. In April, R.O.16,936 of these checks were presented to the bank for payment, and R.O.21,676 were presented in May. What is the amount of outstanding checks at the end of May? Select one: O a. R.O.1,564 O b.R.O.5,204 O c R.O.7,19o O d. R.O.3,64o If a gain of RO.20,000 is made in relation to selling (for cash) office equipment having a book value of R.O 80,00o, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
In the month of May, Fredricksburg Company Inc. wrote checks in the amountof $64,750. In June, checks in the amount of $88,606 were written. In May,$59,276 of these checks were presented to the bank for payment, and $76,181in June. What is the amount of outstanding checks at the end of June?a. $12,425b. $5,474c. $17,899d. $24,850
On a typical day, a company writes 85 checks worth a total of $10,800 that clear in 3.75 days. The company also collects 98 checks worth a total of $14,830 that clear in 3.25 days. Is this a collection or disbursement float? What is the float value?
Next, consider the case of Washburn Flooring Company: The management at Washburn Flooring has determined that it takes an average of 6 days for checks the company writes to clear its bank account. Cash receipts from customers are reflected in Washburn's bank account an average of 2 days after the checks are received. On an average day, Washburn writes checks that total $40,000, and it receives checks from customers that total $50,000. Compute the collection float, the disbursement float, and the net float in dollars in the following table. (Note: By definition, collection float is always considered negative, and disbursement float is always positive. Both should be shown as positive numbers here. The net float, however, should be shown as positive if it is favorable and as negative if it is unfavorable.) Washburn Flooring Company Float Calculations Collection float Disbursement float Net float Given this information, you can deduce that on an average day, Washburn Flooring's bank…
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Ted's Toys just reconciled its bank account and has $12,300 in outstanding deposits and $31,400 in checks outstanding. The firm's checkbook has a positive balance. The firm sells on a cash basis only and deposits its receipts on a daily basis. The deposited funds are available to the firm the following day. The firm writes and mails checks on a daily basis also. These checks generally clear the bank in three days. What do you know about the firm's float given this information? A. The firm has disbursements float but no collection float. B. The collection float exceeds the disbursement float. C. The firm has a net collection float. D. The disbursement float exceeds the collection float. E. Since transactions occur daily, the firm has no float.
The following data maybe few of your considerations to determine the beginning balance of the outstanding checks: total checks issued by the company 1,900,000; total bank debits P1,790,500; bank service charge for the current month P2,500; NSF check returned by the bank for the current month P40,000; Outstanding check at the end of the period is P222,000. Compute the outstanding check beginning of the period.
1 . Prepare a bank reconciliation given the following information the bank statement shows a balance of $4300 while the general ledger shows a balance of $ 2,900. the deposits outstanding ( in transit) are $2,900. the checks outstanding are $ 550. bank service charge is $50. note receivable collected by the bank is $3,600. interest earned for the month is $ 200.

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