Scribd
Upload
983 views3 pages

Ia Problem Solving

The document contains multiple problems summarizing cash and accounts receivable transactions for various companies. Problem 3-10 shows Bay Company reconciling its cash balance through deposits, receipts, credits and debits. Problem 3-11 shows Gray Company reconciling its cash balance through outstanding checks, book credits and checks cleared. Problem 3-13 shows Cool Company reconciling its cash balance through bank balances, deposits in transit and outstanding checks. The remaining problems reconcile accounts receivable balances and transactions for various companies through sales, collections, discounts and allowances.

Uploaded by

Apple Roncal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
983 views3 pages

Ia Problem Solving

The document contains multiple problems summarizing cash and accounts receivable transactions for various companies. Problem 3-10 shows Bay Company reconciling its cash balance through deposits, receipts, credits and debits. Problem 3-11 shows Gray Company reconciling its cash balance through outstanding checks, book credits and checks cleared. Problem 3-13 shows Cool Company reconciling its cash balance through bank balances, deposits in transit and outstanding checks. The remaining problems reconcile accounts receivable balances and transactions for various companies through sales, collections, discounts and allowances.

Uploaded by

Apple Roncal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Proof of cash Problem 3-10 Bay Company

a. 1,600,000
Deposit in Transit 700,000
Add: Cash receipts for the month of December:
Book debit 8,500,000
Less: December credit memo for note collected -600,000 7,900,000
8,600,000
Less: Deposits acknowledged by bank in November:
Bank credits -8,000,000
Erroneous bank charge -200,000
Less: November credit memo for note collected: -7,000,000
1,600,000

Proof of cash Problem 3-11 Gray Company


b. 300,000
Outstanding check beginning balance 230,000
add: Book credits 620,000
total: 850,000
less: checks cleared by the bank 550,000
300,000

Proof of cash Problem 3-13 Cool Company


1. A. 3,200,000

Bank balance 3,000,000


add: Deposit in transit 700,000
total: 3,700,000
less: Outstanding checks -500,000
3,200,000

2. c. 4,100,000

Balance per bank 3,000,000


add: Deposit in Transit 5,500,000
Total: 8,500,000
less: Outstanding check 4,400,000
4,100,000
Affectionate Company Problem 4-3

1. FOB Destination, Freight collect

account receivable 500,000


sales 500,000

freight out 10,000


allowance for freight charge 10,000

cash 475,000
sales discount (500,000 x 3%) 15,000
allowance for freight charge 10,000
accounts receivable 500,000

2. FOB Destination, Freight prepaid

accounts receivable 500,000


sales 500,000

freight out 10,000


cash 10,000

cash (500,000 x 97%) 485,000


sales discount (500,000 x3% 15,000
accounts receivable 500,000

3. FOB Shipping point, Freight collect

accounts receivable 500,000


sales 500,000

cash 485,000
sales discount (500,000 x 3%) 15,000
accounts receivable 500,000

4. FOB Shipping point, Freight prepaid

accounts receivable 500,000


sales 500,000

account receivable 10,000


cash 10,000

cash 485,000
sales discount 15,000
account receivable 500,000
cash 10,000
accounts receivable 10,000

Roxy Company Problem 4-12

Accounts receivable, January 1 1,300,000


Credit sales 5,400,000
Collection from customers, excluding recovery -4,750,000
Accounts written off -125,000
Collection of accounts written off in prior year,
customer credit was not re-established -
Estimated uncollectible receivables per aging
at December 31 -
1,825,000

Faith Company Problem 4-14


b. 6,200,000

Accounts receivable, January 1 4,000,000


Accounts receivable collected 8,400,000
Cash sales -2,000,000
Inventory, January 1 -4,800,000
Inventory, December 31 4,400,000
Purchases -8,000,000
Gross margin on sales 4,200,000
6,200,000

You might also like