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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: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
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
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
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