1

In preparing its September 30 bank reconciliation, Frieda Corp. has the following information available:

Balance per bank statement		$34,510
Deposit in transit		4,650
Customers cheque returned NSF		325
Outstanding cheques		1,925
Bank service charges for August		40

Friedas correct cash balance at September 30 is

$37,235.

$34,510.

$36,870.

$36,910.

2

Braun Company factors $300,000 of accounts receivable with Schick Factors Inc. on a without recourse basis. The receivables records are transferred to Schick Factors, which takes over full responsibility for collections. Schick assesses a finance charge of 4% and withholds an initial amount equal to 7% of the accounts receivable for returns and allowances. The loss on disposal of receivables recorded by Braun is

$21,000.

$0.

$33,000.

$12,000.

3

On February 1, 2020, Strawberry Corp. factored receivables with a carrying amount of $250,000 to Shortcake Inc. Shortcake assessed a finance charge of 3% of the receivables and retained 5% of the receivables. Relative to this transaction, you are to determine the amount of loss on disposal to be reported in the income statement of Strawberry Corp. for February. Assume that Strawberry factors the receivables on a without recourse basis. The loss to be reported is

$15,000.

$14,550.

$7,500.

$ 0.

Delaware Corp.'s accounts payable at December 31, 2020, totalled $450,000 before any necessary year-end adjustments relating to the following: 1. On December 27, 2020, Delaware wrote and recorded cheques to creditors totalling $175,000 causing an overdraft of $100,000 in Delawares bank account at December 31, 2020. The cheques were mailed out on January 10, 2021. 2. On December 28, 2020, Delaware purchased and received goods for $100,000, terms 2/10, n/30. Delaware records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3, 2021. 3. Goods shipped FOB destination on December 20, 2020 from a vendor were received on January 2, 2021. The invoice cost was $65,000. At December 31, 2020, what amount should Delaware report as total accounts payable?

$550,000

$575,000

$723,000

$755,500