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  • Ia Problem Solving

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    Apple Roncal
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    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.

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    Original Title

    IA PROBLEM SOLVING

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    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.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    329 views3 pages

    Ia Problem Solving

    Uploaded by

    Apple Roncal
    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.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 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

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