Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 42

The Cash account in the general ledger of Ciavarella Corporation shows a balance of $112,000 at December 31, 2015 (prior to performing a bank reconciliation).he company's bank statement shows a balance of $104,100 at the same date.n examination of the bank statement reveals the following:
1.eposits in transit amount to $16,800.
2.ank service charges total $100.
3.utstanding checks total $12,400.
4. $2,500 check marked "NSF" from Needham Company (one of Ciavarella's customers) was returned to Ciavarella Corporation by the bank.his was the only NSF check that Ciavarella received during 2015.
5.heck no.50 was actually written by Ciavarella in the amount of $3,200 for computer equipment but was incorrectly recorded in the general ledger as a debit to Computer Equipment of $2,300, and a credit to Cash of $2,300.
In addition to the above information, Ciavarella owns the following assets at December 31, 2015: (1) money market accounts totaling $150,000, (2) $5,000 of high-grade, 60-day commercial paper, and (3) highly liquid stock investments valued at $245,000 at December 31, 2015 (these investments originally cost Ciavarella $225,000).
On December 1, 2015, Ciavarella sold a used truck to Ritter Industries for $18,000.iavarella accepted a three-month, $18,000, 9 percent note receivable from Ritter.he note, plus accrued interest, is due in full on March 1, 2016.iavarella adjusts for accrued interest revenue monthly.
Ciavarella uses the income statement approach to compute uncollectible accounts expense.he general ledger had reported Accounts Receivable of $540,000 at January 1, 2015.t that time, the Allowance for Doubtful Accounts had a credit balance of $12,000.hroughout 2015, the company wrote off actual accounts receivable of $14,000 and collected $5,252,500 on account from credit customers (this amount includes the $2,500 NSF check received from Needham Company).redit sales for the year ended December 31, 2015, totaled $6,480,000.f these credit sales, 1 percent were estimated to eventually become uncollectible.
Instructions
a.repare Ciavarella's bank reconciliation dated December 31, 2015, and provide the journal entry necessary to update the company's general ledger balances.
b.ompute cash and cash equivalents to be reported in Ciavarella's balance sheet dated December 31, 2015.
c.repare the adjusting entry necessary to account for the note receivable from Ritter Industries at December 31, 2015.
d.etermine the net realizable value of Ciavarella's accounts receivable at December 31, 2015.
e.etermine the total dollar amount of financial assets to be reported in Ciavarella's balance sheet dated December 31, 2015.
f.ssume that it is normal for firms similar to Ciavarella to take an average of 60 days to collect an outstanding receivable.s Ciavarella Corporation's collection performance above or below this average