1 1. As of December 31, 2000, Dalton Company has $7,240 cash in its checking account, as well as several other items listed below: Bank credit card slips signed by customers $ 900 Money market fund balance 4,000 Investment in US Treasury bills 10,000 Checks received from customers, but not yet deposited in the bank 700 Investment in ATT 10% bonds, maturing June 2001 15,000 What amount should be shown in Dalton's December 31, 2000, balance sheet as "Cash and cash equivalents"? Answer A) $15,600. B) $22,840 C) $37,840 D) $30,600 3.119 points Question 2 Use the following to answer questions 2 - 3: The Cash account in the ledger of Home-Builders Co. shows a balance of $16,526 at September 30. The bank statement, however, shows a balance of $20,900 at the same date. The only reconciling items consist of a bank service charge of $6, a large number of outstanding checks totaling $5,930, and a deposit in transit. 2. Refer to the above data. What is the adjusted cash balance in the September 30 bank reconciliation? Answer A) $10,590. B) $16,520. C) $14,970 D) $14,964 3.119 points Question 3 3. Refer to the above data. What is the amount of the deposit in transit? Answer A) $4,380 B) $10,310 C) $1,550 D) $4,374. 3.119 points Question 4 4. Rand Inc. had accounts receivable of $200,000 and an allowance for doubtful accounts of $8,500 just before writing off as worthless an account receivable from Dart Company of $1,200. After writing off this receivable what would be the balance in Rand's Allowance for Doubtful Accounts? Answer A) $8,500 credit balance. B) $9,700 credit balance. C) $7,300 credit balance. D) $7,300 debit balance. 3.119 points Question 5 5. At December 31, before adjusting and closing the accounts had occurred, the Allowance for Doubtful Accounts of Wilton Corporation showed a debit balance of $5,300. An aging of the accounts receivable indicated the amount probably uncollectible to be $3,900. Under these circumstances, a year-end adjusting entry for uncollectible accounts expense would include a: Answer A) Debit to the Allowance for Doubtful Accounts for $1,400. B) Credit to the Allowance for Doubtful Accounts for $1,400. C) Debit to Uncollectible Accounts Expense of $3,900. D) Debit to Uncollectible Accounts Expense of $9,200. 3.119 points Question 6 6. At the start of the current year, Belmont Corporation had a credit balance in the Allowance for Doubtful Accounts of $1,200. During the year a monthly provision of 2% of sales was made for uncollectible accounts. Sales for the year were $400,000, and $7,400 of accounts receivable were written off as worthless. No recoveries of accounts previously written off were made during the year. The year-end financial statements should show: Answer A) Uncollectible accounts expense of $15,400. B) Allowance for Doubtful Accounts with a credit balance of $1,800. C) Allowance for Doubtful Accounts with a credit balance of $8,600. D) Uncollectible accounts expense of $7,400. 3.119 points Question 7 7. Moore Corporation invested $290,000 cash in available-for-sale marketable securities in early December. On December 31, the quoted market price for these securities is $307,000. Which of the following statements is correct? Answer A) Moore's December income statement includes a $17,000 gain on investments. B) If Moore sells these investments on January 2 for $300,000, it will report a loss of $7,000. C) Moore's December 31 balance sheet reports marketable securities at $290,000 and an Unrealized Holding Gain on investments of $17,000. D) Moore's December 31 balance sheet reports marketable securities at $307,000 and an Unrealized Holding Gain on Investments of $17,000. 3.119 points Question 8 Use the following to answer questions 8 - 9: On June 1, 2001, Bela Company acquired a 10%, ten-month note receivable from a customer in settlement of an existing account receivable of $120,000. Interest and principal are due at maturity. 8. Refer to the above data. The proper adjusting entry at December 31, 2001, with regard to this note receivable includes a: Answer A) Debit to Cash of $7,000. B) Debit to Notes Receivable of $12,000. C) Credit to Interest Revenue of $12,000. D) Debit to Accrued Interest Receivable of $7,000. 3.119 points Question 9 9. Refer to the above data. Bella's entry to record the collection of this note at maturity includes a: Answer A) Credit to Accrued Interest Receivable of $7,000. B) Credit to Interest Revenue of $7,000. C) Credit to Interest Receivable of $3,000. D) Credit to Notes Receivable of $132,000. 3.119 points Question 10 Use the following to answer questions 10 - 11: On November 1, 2000, Columbus Corporation sold land priced at $700,000 in exchange for a 12%, six-month note receivable. 10. Refer to the above data. Columbus's balance sheet at December 31, 2000, includes which of the following as a result of the sale of land on November 1? Answer A) Notes Receivable of $700,000 and Interest Receivable of $14,000. B) Notes Receivable of $742,000 and Interest Receivable of $14,000. C) Notes Receivable of $700,000 and Interest Receivable of $42,000. D) Notes Receivable of $700,000 only. 3.119 points Question 11 11. Refer to the above data. On May 1, 2001 (maturity date), the note is collected in full by Columbus Corporation. Assuming a fiscal year-end of December 31, Columbus recognizes which of the following in its income statement for 2001 with regard to this note? Answer A) $742,000 sales revenue B) $28,000 interest revenue. C) $14,000 interest revenue D) $42,000 interest revenue 3.119 points Save and Submit