1.

Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2018:

Currency and coins	$	600
Balance in checking account		3,500
Customer checks waiting to be deposited		1,600
Treasury bills, purchased on 11/1/2018, mature on 4/30/2019		2,000
Marketable equity securities		9,900
Commercial paper, purchased on 11/1/2018, mature on 1/30/2019		4,000

What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents?

Multiple Choice

a. $7,700.

b. $9,700.

c. $11,700.

d. $21,600.

2.

Logistics Company had the following items listed in its trial balance at 12/31/2018:

Balance in checking account, Bank of the East	$	482,000
Treasury bills, purchased on 11/1/2018, mature on 1/30/2019		22,000
Loan payable, long-term, Bank of the East		210,000

Included in the checking account balance is $43,000 of restricted cash that Bank of the East requires as a compensating balance for the $210,000 note. What amount will Logistics include in its year-end balance sheet as cash and cash equivalents?

Multiple Choice

a. $504,000.

b. $439,000.

c. $461,000.

d. $482,000.

3.

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,300 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 10?

Multiple Choice

Accounts receivable	8,300
Cash discounts		166
Sales		8,134

Accounts receivable	8,134
Sales		8,134

Accounts receivable	8,134
Cash discounts	166
Sales		8,300

Accounts receivable	8,300
Sales		8,300

4.

On November 10 of the current year, Flores Mills sold carpet to a customer for $7,100 with credit terms 1/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?

Multiple Choice

Cash	7,029
Sales discounts	71
Accounts receivable		7,100

Cash	7,100
Sales discounts	71
Accounts receivable		7,100
Sales		71

Cash	7,029
Accounts receivable		7,029

Cash	7,029
Sales	71
Accounts receivable		7,100

5.

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,600 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?

Multiple Choice

Cash	8,600
Accounts receivable		8,428
Interest revenue		172

Cash	8,600
Accounts receivable		8,600

Cash	8,600
Accounts receivable		8,428
Discounts revenue		172

Cash	8,772
Accounts receivable		8,600
Interest revenue		172