a.
To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.
Introduction:
Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.
b.
To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.
Introduction:
Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.
c.
To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.
Introduction:
Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.
d.
To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.
Introduction:
Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.
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- Snake Creek Company has a trusted employee who, as the owner said, “handles all of the bookkeeping and paperwork for the company.” This employee is responsible for counting, verifying, and recording cash receipts and payments, making the weekly bank deposit, preparing cheques for major expenditures (signed by the owner), making small expenditures from the cash register for daily expenses, and collecting accounts receivable. The owner asked the local bank for a $20,000 loan. The bank asked that an audit be performed covering the year just ended. The independent auditor (a local CPA), in a private conference with the owner, presented some evidence of the following activities of the trusted employee during the past year: Cash sales sometimes were not entered in the cash register and the trusted employee pocketed approximately $50 per month. Cash taken from the cash register (and pocketed by the trusted employee) was replaced with expense memos with fictitious signatures (approximately…arrow_forwardThe accountant of Sophia Manufacturing Company was tasked to perform monthly bank reconciliation. She downloaded the company’s April 30, 2019 bank statement that showed a balance of P32,400. She also printed the cash ledger from the company’s computerized accounting system. It contains the ending balance of P8,350. She also found the following reconciling items:a. The bank statement showed bank service fee of P800.b. The bank collected P1,500 from a note receivable for Sophia Manufacturing. Also, a collection fee of P250.00 was charged.c. Deposit in transit, P51,000.d. Checks outstanding on April 30, P79,100.e. The accountant found a check issued to Rhys Corp. for P4,500 that cleared the bank but was not in the cash ledger. Requirement:a. Prepare the bank reconciliation statement.b. Journalize the adjusting entries.arrow_forwardLanni Products is a start-up computer software development firm. It currently owns computer equipment worth $20,000 and has cash on hand of $29,000 contributed by Lanni’s owners. Lanni takes out a bank loan. It receives $31,000 in cash and signs a note promising to pay back the loan over 3 years. a. Prepare the balance sheet just after it gets the bank loan. What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.) ASSETS Liabilities & shareholders' equity CASH: bank loan : computers : shareholder's equity : total: total : ratio b. Prepare the balance sheet after Lanni spends the $60,000 to develop its software product. What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.) ASSETS Liabilities & shareholders' equity software product: bank loan : computers : shareholder's equity : total: total : ratio c. Lanni sells the software product to Microsoft, which will market it to…arrow_forward
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