of the table below. For each of the three adj adjustment needed for each item in the respective column (inserting parentheses for subtracted amounts). Hint: Each adjustment item will adjust either the bank balance or the book cash balance (not both columns). Then, total up each column in the bottom row to show the correct cash balance match.
of the table below. For each of the three adj adjustment needed for each item in the respective column (inserting parentheses for subtracted amounts). Hint: Each adjustment item will adjust either the bank balance or the book cash balance (not both columns). Then, total up each column in the bottom row to show the correct cash balance match.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
5

Transcribed Image Text:Record each of the transactional entries for Superb Ice, a sales company using GAAP. Please write the
journal entries on the lines below. You may round numbers to the nearest dollar.
●
●
On April 19, the company factors $563,000 of accounts receivable with a factoring company on
a without recourse basis. Assume that factoring company holds 4% of accounts receivable for
probable adjustments, charges 3% of accounts receivable as a finance fee, and any recourse
obligation has a fair value of $11,700.
On May 7, the company loans one of their suppliers $58,396 in cash in exchange for the supplier
signing a $60,000 long-term, interest-bearing note. Assume the note's stated interest rate is
different than the implied market rate.
Date
Apr. 19
May 7
Account
Debit
Credit

Transcribed Image Text:Question 4 (0.5 bonus points total)
Dragon Apparel has the following end of December bank and book cash balances shown in the first row
of the table below. For each of the three adjustment items below, fill in the bank reconciliation
adjustment needed for each item in the respective column (inserting parentheses for subtracted
amounts). Hint: Each adjustment item will adjust either the bank balance or the book cash balance (not
both columns). Then, total up each column in the bottom row to show the correct cash balance match.
Ending bank/book cash balance
(1) The December $1,400 monthly bank service charge is not
recorded in the company's books yet
(2) The company had $3,600 of undeposited receipts on hand
on December 31
(3) Book error: The bank returned a $900 bad check from a
customer on December 31
Correct cash balance
Bank Balance
Column
$126,800
Book Balance
Column
$132,700
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education