ACC 200
Anna's Cookies combines cash and cash equivalents on the balance sheet. Using the following
information, determine the amount reported for cash and cash equivalents.
$130 in coins held in store registers.
$4,060 cash in checking accounts.
$630 in accounts payable to suppliers.
$1,850 worth of equipment.
$1,060 cash in a safe at the store.
$5,300 note receivable due in 10 years. - correct answer $5250
Organic Food Company's Cash account shows a $7,400 debit balance and its bank statement shows
$6,490 on deposit at the close of business on August 31.
August 31 cash receipts of $3,140 were placed in the bank's night depository after banking hours and
were not recorded on the August 31 bank statement.
The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this
NSF check.
Outstanding checks as of August 31 total $3,020.
In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against
Organic Food's account.
The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the
cost of these services. - correct answer
Determine whether each policy below is good or bad cash management; then identify the cash
management strategy violated or followed for each policy.
The company regularly follows up with customers who pay late.
Excess cash is put into short-term investments to earn extra income.
Cash receipts and cash payments are regularly planned and reviewed.
Rarely used equipment is rented rather than purchased.
Bills are paid as soon as they are received. - correct answer
, Specter Company combines cash and cash equivalents on the balance sheet. Using the following
information, determine the amount reported on the year-end balance sheet for cash and cash
equivalents.
$10,000 cash deposit in checking account.
$34,000 bond investment due in 20 years.
$8,500 U.S. Treasury bill due in 1 month.
$550, 3-year loan to an employee.
$2,400 of currency and coins.
$850 of accounts receivable. - correct answer
Del Gato Clinic's cash account shows an $13,900 debit balance and its bank statement shows $14,243 on
deposit at the close of business on June 30.
Outstanding checks as of June 30 total $2,485.
The June 30 bank statement lists a $70 bank service charge.
Check No. 919, listed with the canceled checks, was correctly drawn for $489 in payment of a utility bill
on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in
the amount of $498.
The June 30 cash receipts of $2,081 were placed in the bank's night depository after banking hours and
were not recorded on the June 30 bank statement. - correct answer
Wright Company's cash account shows a $29,500 debit balance and its bank statement shows $27,800
on deposit at the close of business on May 31.
The May 31 bank statement lists $200 in bank service charges; the company has not yet recorded the
cost of these services.
Outstanding checks as of May 31 total $6,600.
May 31 cash receipts of $7,200 were placed in the bank's night depository after banking hours and were
not recorded on the May 31 bank statement.
In reviewing the bank statement, a $500 check written by Smith Company was mistakenly drawn against
Wright's account.
The bank statement shows a $400 NSF check from a customer; the company has not yet recorded this
NSF check. - correct answer
Anna's Cookies combines cash and cash equivalents on the balance sheet. Using the following
information, determine the amount reported for cash and cash equivalents.
$130 in coins held in store registers.
$4,060 cash in checking accounts.
$630 in accounts payable to suppliers.
$1,850 worth of equipment.
$1,060 cash in a safe at the store.
$5,300 note receivable due in 10 years. - correct answer $5250
Organic Food Company's Cash account shows a $7,400 debit balance and its bank statement shows
$6,490 on deposit at the close of business on August 31.
August 31 cash receipts of $3,140 were placed in the bank's night depository after banking hours and
were not recorded on the August 31 bank statement.
The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this
NSF check.
Outstanding checks as of August 31 total $3,020.
In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against
Organic Food's account.
The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the
cost of these services. - correct answer
Determine whether each policy below is good or bad cash management; then identify the cash
management strategy violated or followed for each policy.
The company regularly follows up with customers who pay late.
Excess cash is put into short-term investments to earn extra income.
Cash receipts and cash payments are regularly planned and reviewed.
Rarely used equipment is rented rather than purchased.
Bills are paid as soon as they are received. - correct answer
, Specter Company combines cash and cash equivalents on the balance sheet. Using the following
information, determine the amount reported on the year-end balance sheet for cash and cash
equivalents.
$10,000 cash deposit in checking account.
$34,000 bond investment due in 20 years.
$8,500 U.S. Treasury bill due in 1 month.
$550, 3-year loan to an employee.
$2,400 of currency and coins.
$850 of accounts receivable. - correct answer
Del Gato Clinic's cash account shows an $13,900 debit balance and its bank statement shows $14,243 on
deposit at the close of business on June 30.
Outstanding checks as of June 30 total $2,485.
The June 30 bank statement lists a $70 bank service charge.
Check No. 919, listed with the canceled checks, was correctly drawn for $489 in payment of a utility bill
on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in
the amount of $498.
The June 30 cash receipts of $2,081 were placed in the bank's night depository after banking hours and
were not recorded on the June 30 bank statement. - correct answer
Wright Company's cash account shows a $29,500 debit balance and its bank statement shows $27,800
on deposit at the close of business on May 31.
The May 31 bank statement lists $200 in bank service charges; the company has not yet recorded the
cost of these services.
Outstanding checks as of May 31 total $6,600.
May 31 cash receipts of $7,200 were placed in the bank's night depository after banking hours and were
not recorded on the May 31 bank statement.
In reviewing the bank statement, a $500 check written by Smith Company was mistakenly drawn against
Wright's account.
The bank statement shows a $400 NSF check from a customer; the company has not yet recorded this
NSF check. - correct answer
