SUBJECT- ACCOUNTWhich of the following constitutes constructive receipt inthe current year ended December 31?a. A salary check received at 6:00 p.m. on December 31,after all the banks have closed.b. A rent check received on December 30 by the managerof an apartment complex. The manager normally collectsthe rent for the owner. The owner was out of town.c. A paycheck received on December 29 that was nothonored by the bank because the employer's account didnot have sufficient funds.d. A check received on December 30. The check waspostdated on January 2 of the following year.e. A check received on January 2. The check had beenmailed on December 30.

The concept of constructive receipt in tax law means that income is considered received when it is…

Answered: SUBJECT- ACCOUNT Which of the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8Q: Aron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000...

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True or False. 5. Deposits in transit refer to collections received on the last day of the month which are deposited the first working day of the following month.6. Deposit in transit is a reconciling item which requires an adjusting entry in the books of the depositor.7. Bank service charge is an example of an unrecorded bank credit.8. Bank reconciliation is prepared once a year at the end of the accounting period.9. An NSF check is a reconciling item that does not require an adjusting entry in the books of the depositor.10. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation.11. A bank statement is prepared by the depositor to reconcile the difference between his records and bank records.12. A bank statement is a letter issued by the bank that certifies the existence of the bank account.13. Deposit in transit is a reconciling item added to the unadjusted book balance.14. Outstanding check is a reconciling item deducted…
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation. 1. NSF check from customer is returned on September 25 but not yet recorded by this company. 2 Interest earned on the September cash balance in the bank. 3. Deposit made on September 5 and processed by the bank on September 6. 4 Checks written by another depositor but charged against this company's account. 5 Bank service charge for September. 6 Checks outstanding on August 31 that cleared the bank in September Check written against the company's account and cleared by the bank, erroneously not 7 recorded by the company's recordkeeper. Principal and interest on a note receivable to this company is collected by the bank but not yet 8 recorded by the company. 9 Checks written and mailed to payees on October 2 10. Checks written by the company…
• A bank service charge of $10 is deducted by the bank and appears on the November 30 bank statement. 1. The following information is available for Hapley Co. • November 30 bank statement shows a $1,895 balance. • The general ledger shows a $1,742 balance at November 30. • A $795 deposit placed in the bank's night depository on November 30 does not appear on the November 30 bank How will the customer's note appear on Hapley's November 30 bank reconciliation? a. $320 appears as an addition to the book balance of cash. b. $320 appears as a deduction from the book balance of cash. c. $320 appears as an addition to the bank balance of cash. d. $320 appears as a deduction from the bank balance of cash. e. $335 appears as an addition to the bank balance of cash. statement. • Outstanding checks amount to $638 at November 30. • A customer's $320 note was collected by the bank and deposited in Hapley's account in November.
For each of the items in the following list, identify where it is included on a bank reconciliation: 1. EFT payment made by a customer. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Bank debit memorandum for service charges. Outstanding cheques from the current month. Bank error in recording a $1,779 deposit as $1,977. Outstanding cheques from the previous month that are still outstanding. Outstanding cheques from the previous month that are no longer outstanding. Bank error in recording a company cheque made out for $160 as $610. Bank credit memorandum for interest revenue. Company error in recording a deposit of $160 as $1,600. Bank debit memorandum for a customer's NSF cheque. Deposit in transit from the current month. Company error in recording a cheque made out for $630 as $360.
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation.
Prapare the journal entry for the following: December 17: Byte was informed that Mr. Madoff who has an account with the company will never pay the $618.00 he owes. Record the transaction to write off Mr. Madoff's accounts receivable account using the allowance method.
1, Journalize the transactions listed below and post to the ledger accounts. Omit explanations. Jan6 Rented an office and furniture for $2,000 per month. Issued Check No. 101 for $6,000, representing the first and last month's rent and the security deposit.[ the security deposit (debit deposit), the last month's rent, and the current rent are to be classified separately.] Jan7 Issued Check No. 102 for $1,600 for the purchase of office supplies. Jan7 Issued Check No. 103 for $7,000 for advertising to be run in local nespaper and magazines in the month of Jan Jan10 Roxana Perini engaged My Place, House of Decor to renovate her oceanfront condominium. Received $10,000 from Roxana Perini after services were completed. Jan12 Recorded $6,000 (net 30) decorating fees earned on account from Maribel Thompson to remodel her office.
The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?
Question: Gideon method Company uses the allowance of accounting uncollectable accounts. for On May 3, the Gideon Company wrote the $2,000 off account Hopkins. of uncollectable its customer, A. On July 10, Gideon received a check for the full amount of of $2,000 from Hopkins. On July 10, what what are the entry or entries Gideon makes to record the recovery of the bad debt?
Sarah has received her bank statement for the month ending November 30, which showed the following: Ending balance $641.50 Service charge 15.00 ATM Withdrawal 70.00 Interest earned .50 After reviewing the checkbook and bank statement, she determines that: The November 30 checkbook balance is $1,136.00 Bank service charges, an ATM withdrawal, and interest had not been recorded. A $954.00 deposit made on November 30 is not on the bank statement. Outstanding checks total $544.00. Prepare a bank reconciliation in proper format.
Aron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000 on August 1. On December 31, Bank Enterprises uses the allowance method and determines the loan to be uncollectible. Larson had not paid anything toward the balance due on account. Record the journal entry recording the bad debt write-off?
On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable $ 8,400 Accounts Receivable 6,800 Accumulated Depreciation-Equipment 6,600 Cash 3,640 Cash Equivalents 1,620 Common Stock 10,200 Deferred Revenue 3,900 Equipment 30,900 Notes Payable (long-term) 12,400 Prepaid Rent Retained Earnings 1,890 3,850 500 Supplies The following transactions occurred during January. a Received $2.370 cash on 1/1 from customers on account for recording services completed in December. b. Wrote checks on 1/2 totaling $4,370 for amounts owed on account at the end of December. c. Purchased and received supplies on account on 1/3, at a total cost of $200. d. Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December. e. Received $4.700 cash on 1/5 from customers for recording sessions started and completed in January. Wrote a check on 1/6 for $4.040 for an amount owed on account. g. Converted $1.030 of cash equivalents into cash on…

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