On December 31, 2020, Allan Company had the following cash balances: Cash on hand and in bank 4,000,000 Cash restricted for bonds payable due on June 30, 2021 13,000 Time deposit 1,500,000 Savings deposit set aside for dividends payable on June 30, 2021 500,000 Cash in bank includes P175,000 of compensating balance against short term borrowing arrangement at December 31, 2020. The compensating balance is legally restricted as to withdrawal by Allan. A check of P75,000 dated January 15, 2021 and in payment of accounts payable was recorded and mailed on December 31, 2020. In the current assets section of the December 31, 2020statement of financial position, what amount should be reported as "cash and cash equivalents"?

On December 31, 2020, Allan Company had the following cash balances: Cash on hand and in bank 4,000,000 Cash restricted for bonds payable due on June 30, 2021 13,000 Time deposit 1,500,000 Savings deposit set aside for dividends payable on June 30, 2021 500,000 Cash in bank includes P175,000 of compensating balance against short term borrowing arrangement at December 31, 2020. The compensating balance is legally restricted as to withdrawal by Allan. A check of P75,000 dated January 15, 2021 and in payment of accounts payable was recorded and mailed on December 31, 2020. In the current assets section of the December 31, 2020statement of financial position, what amount should be reported as "cash and cash equivalents"?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Claire Corporation had the following account balances at December 31, 2020: Cash on hand and in bank 2,500,000 Cash restricted for bonds payable due on June 30, 2021 1,000,000 Time deposit 3,000,000 Savings deposit set aside for dividends payable on June 30, 2021 500,000 The total amount to be reported as cash and cash equivalent as of December 31, 2020 is P6,500,000 P6,000,000 P5,500,000 O P7,000,000
On December 31, 2021, Yohan Company provided the following information: Accounts Payable, Including deposits and advances from customer of P250,000 1,250, 000 Notes payable, including note payable to bank due on December 31, 2022 of 500,000 1.500,000 Share dividend payable 400,000 Credit balances in customer's account 200,000 Serial bonds payable in semi annual installment of 500,000 5,000,000 Accrued interest on bonds payable 150,000 Contested BIR tax assessment - possible obligation 300,000 Unearned rent income 100,000 Required: Compute the total current liabilities on December 31,2021
SM Investments Corporation had the following account balances at December 31, 2019:Cash on hand and in bank P2,500,000Cash restricted for bonds payable dueOn June 30, 2020 1,000,000Time Deposit 3,000,000Savings deposit set aside for dividendsPayable on March 31, 2020 500,000* The cash in bank included a customer’s check of P50,000 outstanding for 16 months.* Check of P80,000 in payment of accounts payable was dated and recorded on December31, 2019 but mailed to creditors on January 12, 2020.* Check of P20,000 dated January 31, 2020 in payment of accounts payable was recordedand mailed December 31, 2019.*The reporting period is the calendar year. The cash receipts journal was held open untilJanuary 15, 2020 during which time P 100,000 was collected and recorded on December31, 2019.In the current assets section of SM’s December 31, 2019 balance sheet, the amount reportedas cash and cash equivalents is __________Problem 6The December 31,2019 trial balance of Aboitiz Equity Ventures, Inc.,…
SM Investments Corporation had the following account balances at December 31, 2019:Cash on hand and in bank P2,500,000Cash restricted for bonds payable dueOn June 30, 2020 1,000,000Time Deposit 3,000,000Savings deposit set aside for dividendsPayable on March 31, 2020 500,000* The cash in bank included a customer’s check of P50,000 outstanding for 16 months.* Check of P80,000 in payment of accounts payable was dated and recorded on December31, 2019 but mailed to creditors on January 12, 2020.* Check of P20,000 dated January 31, 2020 in payment of accounts payable was recordedand mailed December 31, 2019.*The reporting period is the calendar year. The cash receipts journal was held open untilJanuary 15, 2020 during which time P 100,000 was collected and recorded on December31, 2019.In the current assets section of SM’s December 31, 2019 balance sheet, the amount reportedas cash and cash equivalents is __________
Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: a. $66,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. b. Prepaid rent of $40,000, covering the period January 1, 2022, through December 31, 2023. c. Notes payable of $232,0o00. The notes are payable in annual installments of $36,000 each, with the first installment payable on March 1, 2022. d. Accrued interest payable of $28,000 related to the notes payable. e. Investment in equity securities of other corporations, $112,000. Cone intends to sell one-half of the securities in 2022. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported. CONE CORPORATION Balance Sheet (Partial) At December 31, 2021 Assets
.On December 31, 2021, Alfonso Company had the following cash balances:Cash in bank, 15,000,000Petty cash fund, 50,000Time deposit 5,000,000Savings deposit 2,000,000Cash in bank includes P500,000 of compensating balance against short term borrowing arrangement at December 31, 2021. The compensating balance is legally restricted as to withdrawal by Alfonso. A check of P300,000 dated January 15, 2022 in payment of accounts payable was recorded and mailed on December 31, 2021. In the current assets section of the December 31, 2021 statement of financial position, what amount should be reported as “cash and cash equivalents”? 14,850,000 16,850,000 21,800,000 21,850,000
SM Investments Corporation had the following account balances at December 31, 2019: Cash on hand and in bank P2, 500,000 Cash restricted for bonds payable due On June 30, 2020 1,000,000 Time Deposit 3,000,000 Savings deposit set aside for dividends Payable on March 31, 2020 500,000 * The cash in bank included a customer’s check of P50, 000 outstanding for 16 months. * Check of P80, 000 in payment of accounts payable was dated and recorded on December 31, 2019 but mailed to creditors on January 12, 2020. * Check of P20, 000 dated January 31, 2020 in payment of accounts payable was recorded and mailed December 31, 2019. *The reporting period is the calendar year. The cash receipts journal was held open until January 15, 2020 during which time P 100,000 was collected and recorded on December 31, 2019. In the current assets section of SM’s December 31, 2019 balance sheet, the amount reported as cash and cash equivalents is __________
Cypress Oil Company's December 31, 2021, balance sheet listed $727,000 of notes receivable and $21,300 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2021, principal of $390,000 and interest at 9% due on 2/28/2022. Note 2 Dated 6/30/2021, principal of $240,000 and interest due 3/31/2022. Note 3 $100,000 face value noninterest-bearing note dated 9/30/2021, due 3/31/2022. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2021. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. (Round your intermediate calculations to the nearest whole dollar amount.) 3. What is the amount of interest revenue that appears in the company's 2021 income statement related to these notes? 1. 2. 3. Discount rate Interest rate Interest revenue Answer…
The following balances were reported by BTS Company on December 31, 2020 and 2019: 2020: Accounts payable - P3,500,000; Notes payable - P4,000,000 2019: Accounts payable - P2,500,000; Notes payable - P1,500,000 On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. All other notes payable arose from purchases of merchandise. Total payment to suppliers in 2020 amounted to P11,000,000, after purchase discount of P250,000. During 2020, company returned defective merchandise costing P500,000. What is the amount of gross purchases for 2020 under the accrual basis?