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Will you answer the following questions form me, o...




Will you answer the following questions form me, or as many as you think my offer is worth? These questions are similar to the excercise questions in the chapter 7-2: 7-4 Excercise 7-2 1. Checking account balance $927,920; certificate of deposit $1,417,300; cash advance to subsidiary of $989,520; utility deposit paid to gas company $190. Cash balance $ 2. Checking account balance $504,560; an overdraft in special checking account at same bank as normal checking account of $19,600; cash held in a bond sinking fund $245,680; petty cash fund $351; coins and currency on hand $1,550. Cash balance $ 3. Checking account balance $625,280; postdated check from a customer $14,400; cash restricted due to maintaining compensating balance requirement of $105,160; certified check from customer $9,110; postage stamps on hand $632. Cash balance $ 4. Checking account balance at bank $47,010; money market balance at mutual fund (has checking privileges) $49,510; NSF check received from customer $850. Cash balance $ 5. Checking account balance $713,380; cash restricted for future plant expansion $507,440; short-term Treasury bills $198,700; cash advance received from customer $921 (not included in checking account balance); cash advance of $7,630 to company executive, payable on demand; refundable deposit of $29,200 paid to federal government to guarantee performance on construction contract. Cash balance $ Problem 7-3 Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Manilow's Accounts Receivable account was $601,600 and the Allowance for Doubtful Accounts had a credit balance of $41,200. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Amount Probability of Collection Less than 16 days $317,500 0.98 Between 16 and 30 days 114,700 0.92 Between 31 and 45 days 83,200 0.86 Between 46 and 60 days 42,900 0.80 Between 61 and 75 days 26,400 0.55 Over 75 days 16,900 00 (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts $ Exercise 7-4 Your accounts receivable clerk, Mary Herman, to whom you pay a salary of $3,120 per month, has just purchased a new Audi. You decided to test the accuracy of the accounts receivable balance of $243,360 as shown in the ledger. The following information is available for your first year in business. (1) Collections from customers $411,840 (2) Merchandise purchased 665,600 (3) Ending merchandise inventory 145,600 (4) Goods are marked to sell at 40% above cost Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account. The ending balance of accounts receivable from customers $ Apparent shortage $


Paper#1208 | Written in 18-Jul-2015

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