shared via CourseHero com This study resource was This study source was downloaded by 100000821526305 from CourseHero com on 04 14 2021 07 45 04 GMT 05 00 https www coursehero com file 34984984 7docx Homework Chapter 7BE7 1 L01 Kraft Enterprises owns the following assets at December 31 2017 Cash in bank savings account68 000Checking account balance17 000Cash on hand9 300Postdated checks750Cash refund due from IRS31 400Certificates of deposit 180 day 90 000What amount should be reported as cash Cash in bank savings account68 000Cash on hand9 300Checking account balance17 000Amount reported as cash 94 300BE7 2 L02 Restin Co uses the gross method to record sales made on credit On June 1 2017 itmade sales of 50 000 with terms 3 15 n 45 On June 12 2017 Restin received full payment for the June 1 sale Prepare the required journal entries for Restin Co DateAccount Title and ExplanationRef DebitCredit1 JuneAccounts Receivable50 000 Sales Revenue50 00012 JuneCash 50 000 50 000 x 0 03 48 500 48 500Sales Discounts1 500 Accounts Receivable50 000BE7 3 L02 Use the information from BE7 2 assuming Restin Co uses the net method to account for cash discounts Prepare the required journal entries for Restin Co DateAccount Title and ExplanationRef DebitCredit1 JuneAccounts Receivable48 500 Sales Revenue48 50012 JuneCash48 500 Accounts Receivable48 500BE7 4 L02 Roeher Company sold 9 000 of its specialty shelving to Elkins Office Supply Co on account Prepare the entries when a Roeher makes the sale b Roeher grants an allowance of 700 when some of the shelving does not meet exact specifications but still could be sold by shared via CourseHero com This study resource was This study source was downloaded by 100000821526305 from CourseHero com on 04 14 2021 07 45 04 GMT 05 00 https www coursehero com file 34984984 7docx Elkins and c at year end Roeher estimates that an additional 200 in allowances will be granted to Elkins DateAccount Title and ExplanationRef DebitCredit a Accounts Receivable9 000 Sales Revenue9 000 b Allowance for Sale Returns and Allowances700 Accounts Receivable700 c Sales Returns and Allowances200 Allowances for Sales Returns and Allowances200BE7 5 L03 Wilton Inc had net sales in 2017 of 1 400 000 At December 31 2017 before adjusting entries the balances in selected accounts were Accounts Receivable 250 000 debit and Allowance for Doubtful Accounts 2 400 credit If Wilton estimates that 8 of its receivables will prove to be uncollectible prepare the December 31 2017 journal entry to record bad debt expense DateAccount Title and ExplanationRef DebitCreditBad Debt Expense 250 000 x 0 08 2 400 17 600 17 600 Allowance for Doubtful Account17 600E7 1 L01 EXCEL Determining Cash Balance The controller for Clint Eastwood Co is attempting to determine the amount of cash to be reported on its December 31 2017 balance sheet The following information is provided 1 Commercial savings account of 600 000 and a commercial checking account balance of 900 000 are held at First National Bank of Yojimbo 2 Money market fund account held at Volonte Co a mutual fund organization permits Eastwood to write checks on this balance 5 000 000 3 Travel advances of 180 000 for executive travel for the first quarter of next year employee to reimburse through salary reduction 4 A separate cash fund in the amount of 1 500 000 is restricted for the retirement of long term debt 5 Petty cash fund of 1 000 6 An I O U from Marianne Koch a company customer in the amount of 190 000 7 A bank overdraft of 110 000 has occurred at one of the banks the company uses to deposit its cash receipts At the present time the company has no deposits at this bank 8 The company has two certificates of deposit each totaling 500 000 These CDs have a maturity of 120 days shared via CourseHero com This study resource was This study source was downloaded by 100000821526305 from CourseHero com on 04 14 2021 07 45 04 GMT 05 00 https www coursehero com file 34984984 7docx 9 Eastwood has received a check that is dated January 12 2018 in the amount of 125 000 10 Eastwood has agreed to maintain a cash balance of 500 000 at all times at First National Bank of Yojimbo to ensure future credit availability 11 Eastwood has purchased 2 100 000 of commercial paper of Sergio Leone Co which is due in 60 days 12 Currency and coin on hand amounted to 7 700 Instructions a Compute the amount of cash to be reported on Eastwood Co s balance sheet at December 31 2017 1 Commercial savings account at First National Bank of Yojimbo in the amount of 600 000 1 Commercial checking account at First National Bank of Yojimbo in the amount of 900 000 2 Money Market Fund at Volonte Co in the amount of 5 000 000 5 Petty Cash in the amount of 1 000 11 Commercial Paper of Sergio Leone Co in the amount of 2 100 000 12 Currency and Coin on hand in the amount of 7 700Total cash reported on December 31 2017 balance sheet is 8 608 700 b Indicate the proper reporting for items that are not reported as cash on the December 31 2017 balance sheet 3 Travel advances in the amount of 180 000 from employees should be reported as a receivable 4 Cash restricted in the amount of 1 500 000 for the retirement long term debt should be reported as a noncurrent asset 6 IOU from Marianne Koch should be reported as an account receivable in the amount of 190 000 7 Bank overdraft in the amount of 110 000 should be reported as a current liability 8 Certificates of Deposits in the amount of 500 000 should be classified as temporary investments 9 Postdated check in the amount of 125 000 should be reported as an accounts receivable Does not affect the cash balance of the company A disclosure in the notes section should be placed to indicate the arrangement and the amounts involved E7 2 L01 Determining Cash Balance Presented below are a number of independent situations Instructions shared via CourseHero com This study resource was This study source was downloaded by 100000821526305 from CourseHero com on 04 14 2021 07 45 04 GMT 05 00 https www coursehero com file 34984984 7docx For each individual situation determine the amount that should be reported as cash If the item s is not reported as cash explain the rationale 1 Checking account balance 925 000 certificate of deposit 1 400 000 cash advance to subsidiary of 980 000 utility deposit paid to gas company 180 The amount to be reported as cash is the balance of 925 000 in the checking account The certificate of deposit in the amount of 1 400 000 should be