c. Money orders, postdated checks, personal checks, time deposits. d. Silver coins, money orders, demand deposits, personal checks. 5. Which of the following methods of accounting for uncollectible accounts
E 21–4: Summary entries for cash received from customers LO21–3 For each of the three independent situations below, prepare journal entries that summarize the selling and collection activities for the reporting period in order to determine the amount of cash received from customers and to explain the change in each account shown. All dollars are in millions. Situation 1 Sales | $200 | Received on account | $0 | Cash received | $200 | Summary Entry 1 Description | Debit | Credit | Cash | $200 | | Sales Revenue | | $200 | Situation 2 Sales | $200 | Received on account | $10 | Cash received | $190 | Summary Entry 2 Description | Debit | Credit | Cash (received from customers) | $190 | |
d. Remit the tape and the cash to central office. 3. The primary concern in this operation is control over cash, because all sales are cash. This concern was addressed by using a cash register, having the lead person check the cash, and depositing it intact daily. |LO 5 | |PROBLEM 6-3 THE DESIGN OF INTERNAL CONTROL DOCUMENTS | 1.
Accounting 300 Learning Team Week 2 4. Indicate how each business transaction affects the basic accounting equation. (a) Paid cash for janitorial services. Decrease Cash Increase Liabilities (b) Purchased equipment for cash. Decrease Cash Increase Assets (c) Issued common stock to investors in exchange for cash Increase Cash Decrease in Stock Equity.
Case Study 1 a) What is the break-even point in passengers and revenues per month? Contribution margin per passenger = $ 160- $ 70 = $ 90 per passenger Contribution margin ratio = $ 90/$160 = 56.25% Passengers = $3,150,000/$ 90 per passenger = 35,000 passengers Break-even point in dollars = $ 3,150,000/0.5625 = $ 5,600,000 b) What is the break-even point in number of passenger train cars per month? Average load factor = 70% of 9090 X 0.70 = 63 seats per train car 35,000/ 63 = 556 train cars c) If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars? Contribution margin = $190 - $ 70 = $120 per passenger 90 X .60 = 54 filled seats Break-even point in passengers = $ 3,150,000/$120 = 26,250 passengers 26,250/54 = 486 train cars d) (Refer to original data.)
ACCT 504 Week 4 Midterm Exam Click here to Purchase (TCO A, B, C) Which of the following statements concerning users of accounting information is incorrect? (TCO C) Issuing shares of stock in exchange for cash is an example of a(n) (TCO C) Which activities involve putting the resources of the business into action to generate a profit? (TCO A) The cost of assets consumed or services used is also known as (TCO C) Edwards Company recorded the following cash transactions for the year (TCO A) On a classified balance sheet, prepaid insurance is classified as (TCO A) An intangible asset (TCO A) These are selected account balances on December 31, 2007. -Land (location of the corporation's office building) $200,000 -Land (held for future use) 300,000
* Write the monetary amount of the check in word form below the "Pay to the Order of" line. * Sign the check on the line in the bottom right corner. * Fill out the memo section on the bottom left of the check. * Update Your Check Register. * Routing number, Account number, check number Any questions?
Ratios include the current ratio, the current cash debt coverage ratio, the receivables turnover ratio, the average collection period, the inventory turnover ratio, and average days in inventory. Current Ratio - Expresses the relationship of current assets to current liabilities. Calculate the current ratio for Kellogg for 2007 and 2006 What do the measures tell us? A current ratio of .67 means that for every dollar of current liabilities, Kellogg has $0.67 of current assets. Cash Debt Coverage Ratio - Because it uses cash provided by operating activities, it may provide a better representation of liquidity.
b) Balance the accounts and prepare the trial balance at the end of week 1. Question 3 The transactions of Mr Peters business during the first week of trading are as follows: 1/ Mr Peters deposits £62000 into a business bank account. 2/ Buys a machine for £7000 on credit from Mr Brown 3/ The business receives a loan of £15000. 4/ Purchases goods at a cost of £16000, paying by cheque 5/ Sells goods for £14000. Customer pays by cheque immediately.
Companies that use notes receivable in their bookkeeping follow the accrual method of accounting. Promissory Notes and Notes Receivable In order to use the notes receivable account, the company must have a signed promissory note to back each borrower account. A promissory note stipulates the amount of debt owed by the borrower, the interest rate, if any, and the terms of payment. The note can be formal or it can be handwritten, dated and signed by the borrower. As long as there is a promissory note, the company should record the amount owed in the notes receivable account in the general journal.