Acc 422 Week 2 Invidual

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This work of ACC 422 Week 2 Individual Assignment includes: Chapter 8 1) Question 8-13 2. Due Day 7 (Monday): Exercises from the Text Prepare written responses to the following assignments from the text, Intermediate Accounting, 12th ed.: Chapter 7 1) Exercise E7-2 E7-2 (Determine Cash Balance) Presented below are a number of independent situations. Instructions 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. 2) Exercise E7-8 E7-8 (Recording Bad Debts) At the end of 2007 Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2008, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off. Instructions (a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable. (b) What is the net realizable value of Aramis Company’s accounts receivable before the write-off of the Ramirez receivable? (c) What is the net realizable value of Aramis Company’s accounts receivable after the write-off of the Ramirez receivable? Chapter 8 3) Exercise E8-5 E8-5 (Inventoriable Costs—Error Adjustments) Craig Company asks you to review its December 31, 2007, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 4) Exercise E8-14

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Question 1 Presented below are a number of independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $936,100; certificate of deposit $1,448,900; cash advance to subsidiary of $991,010; utility deposit paid to gas company $192. Cash balance $ 2. Checking account balance $515,050; an overdraft in special checking account at same bank as normal checking account of $17,500; cash held in a bond sinking fund $234,200; petty cash fund $347; coins and currency on hand $1,450. Cash balance $ 3. Checking account balance $625,940; postdated check from a customer $14,070; cash restricted due to maintaining compensating balance requirement of $120,010; certified check from customer $9,580; postage stamps on hand $683. Cash balance $ 4. Checking account balance at bank $46,310; money market balance at mutual fund (has checking privileges) $48,800; NSF check received from customer $871. Cash balance $ 5. Checking account balance $701,980; cash restricted for future plant expansion $508,420; short-term Treasury bills $190,900; cash advance received from customer $978 (not included in checking account balance); cash advance of $7,770 to company executive, payable on demand; refundable deposit of $28,700 paid to federal government to guarantee performance on construction contract. Question 2 At the end of 2012, Sorter Company has accounts receivable of $872,640 and an allowance for doubtful accounts of $49,420. On January 16, 2013, Sorter Company determined that its receivable from Ordonez Company of $7,600 will not be collected, and management authorized its write-off. Question 3 Werth Company asks you to review its December 31, 2012, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Werth uses the periodic method of recording inventory. A physical count reveals $282,103 of inventory on hand at December 31, 2012. 2. Not included in the physical count of inventory is $12,514 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. 3. Included in inventory is merchandise sold to Bubbey on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $15,373 on December 31. The merchandise cost $8,827, and Bubbey received it on January 3. 4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $18,772. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. 5. Not included in inventory is $10,257 of merchandise purchased from Minsky Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. 6. Included in inventory was $12,536 of inventory held by Werth on consignment from Jackel Industries. 7. Included in inventory is merchandise sold to Sims f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $22,699 on December 31. The cost of this merchandise was $13,836, and Sims received the merchandise on January 5. 8. Excluded from inventory was a carton labeled “Please accept for credit.” This carton contains merchandise costing $1,802 which had been sold to a customer for $3,123. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged. Question 4 LoBianco Company’s record of transactions for the month of April was as follows.

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