Acc 422 Week 2 Wileyplus Assignment

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 ACC 422 Week 2 WileyPLUS Assignment

Exercise 7-2

Presented below are a number of independent situations.

For each individual situation, determine the amount that should be reported as cash.

1. Checking account balance $929,070; certificate of deposit $1,417,000; cash advance to subsidiary of $992,770; utility deposit paid to gas company $198.

2. Checking account balance $503,630; an overdraft in special checking account at same bank as normal checking account of $20,900; cash held in a bond sinking fund $235,120; petty cash fund $332; coins and currency on hand $1,460.

3. Checking account balance $606,360; postdated check from a customer $11,450; cash restricted due to maintaining compensating balance requirement of $119,770; certified check from customer $9,610; postage stamps on hand $642.

4. Checking account balance at bank $46,660; money market balance at mutual fund (has checking privileges) $49,520; NSF check received from customer $845.

5. Checking account balance $703,110; cash restricted for future plant expansion $516,120; short-term Treasury bills $187,700; cash advance received from customer $986 (not included in checking account balance); cash advance of $7,540 to company executive, payable on demand; refundable deposit of $29,900 paid to federal government to guarantee performance on construction contract.



Exercise 7-8

At the end of 2012, Sorter Company has accounts receivable of $854,470 and an allowance for doubtful accounts of $47,360. On January 16, 2013, Sorter Company determined that its receivable from Ordonez Company of $6,240 will not be collected, and management authorized its write-off.

(a) Prepare the journal entry for Sorter Company to write off the Ordonez receivable. (Credit account titles are automatically indented when the...