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Friday, August 6, 2010

Valix Finacc vol 1 Problem 3-4

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 3-4



Adjusting entries on December 31, 2008


a.  Cash                                                                                   100,000
            Accounts payable                                                                               100,000

b.  Cash                                                                                     50,000
            Accounts payable                                                                                 50,000

c.  Accounts receivable                                                          200,000
            Cash                                                                                                    200,000

d.  Accounts receivable (20,000 + 60,000 + 30,000)                 110,000
     Money market placement                                  1,000,000
     Cash in closed bank                                                           50,000
     Advances to employee                                                      30,000
     Pension fund                                                                      400,000
            Cash                                                                                                 1,590,000


                                                                                                                                        27

     Cash and cash equivalents:
         Demand deposit (see below)                                                                1,450,000
         Time deposit – 30 days                                                                              500,000
         Petty cash fund                                                                                           10,000
         Total                                                                                                       1,960,000

     Demand deposit per book                                                                        1,500,000
     Undelivered check                                                                            100,000
     Postdated check delivered                                                                             50,000
     Window dressing of collection                                                                  (   200,000)
     Adjusted balance                                                                                       1,450,000

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