compute every item is in my homework but also need how to do them, so if you have the time to demostrate please do so, thank you I attach the homework

Nombre:______________________________ Asignacin#5 Contabilidad Intermedia 201 Fecha:_____________ Chapter 7Cash and Receivables MULTIPLE CHOICE 1. Which of the following would be included in cash and cash equivalents on the balance sheet? a. certificates of deposit b. bank overdrafts c. commercial paper d. postage stamps 2. Which of the following would not be considered as a cash equivalent? a. certificates of deposit b. commercial paper c. treasury bills d. money market fund securities 3. Items classified as "cash" on the balance sheet a. are limited to coins, currency, or bank drafts b. must be available to pay current obligations c. may be subject to contractual restrictions d. do not include negotiable checks or bank drafts 4. Which of the following would not be reported on the financial statements? a. sales discount taken b. trade receivables c. trade discounts d. sales discounts not taken 5. When a company decides to sell its goods on credit, it should evaluate the effect on profit of Additional Revenues a. b. c. d. Yes Yes No No Additional Expenses Yes No Yes No Asignacin #5 (ACCO 201 Prof. Carlos lvarez) 5-1 6. In accounting for sales discounts, most companies use the a. allowance method b. gross price method c. discounted price method d. net price method 7. The Sales Returns and Allowances account is reported as a a. contra-revenue account on the income statement b. current liability on the balance sheet c. deduction from accounts receivable on the balance sheet d. selling expense on the income statement 8. In order to be classified as a cash equivalent, an investment must have a maturity date of a. less than six months b. three to six months c. six to twelve months d. three months or less 9. Which of the following methods may not be appropriate for estimating bad debt expense? a. percentage of net credit sales b. percentage of outstanding accounts receivable c. aging of accounts receivable d. percentage of sales 10. Bad debt expense is normally reported on the income statement as a(n) a. operating expense b. offset against gross sales c. financial expense in the other items section d. contra-revenue amount 5-2 11. The estimate of bad debt expense may be based on the historical relationships between actual bad debts incurred and Sales a. b. c. d. Yes Yes No No Accounts Receivable No Yes Yes No 12. During 2014, a company wrote off $6,000 in uncollectible accounts receivable. At the end of the year, they estimated bad debt expense using a percent of gross sales. In 2015, the company recovered a $1,000 account that was written off in 2014. The recording of this recovery would include a a. debit to retained earnings b. credit to accounts receivable c. debit to allowance for doubtful accounts d. credit to prior period adjustments 13. If a company usually sells its accounts receivable, it records any factoring commissions as a(n) a. Loss b. Expense c. Receivable d. Liability 14. Melody, Inc., accepts a national credit card. The collection fee is 6%. If credit card sales are $500, the correct journal entry is 470 a. Accounts Receivable Sales Accounts Receivable b. Credit Card Expense Sales c. Accounts Receivable Sales d. Accounts Receivable Credit Card Discount Sales 470 470 30 500 500 500 500 30 470 Asignacin #5 (ACCO 201 Prof. Carlos lvarez) 5-3 15. What entry format is appropriate if sales returns and allowances occur on factored accounts? XX a. Sales Returns and Allowances Receivable from Factor b. Receivable from Factor Factoring Expense Sales Returns and Allowances c. Factoring Expense d. Receivable from Factor Accounts Receivable XX XX XX XX XX XX XX 16. Short-term non-interest-bearing notes receivable are usually recorded at their a. present value b. net realizable value c. principal value d. maturity value BONO's 17. On June 3, Trade Bank loaned a customer $30,000 on a 60-day, 10% note, remitting the face value less the interest to the customer. Which of the following journal entries would Trade Bank use to record the receipt of the note? 30,000 a. Notes Receivable Interest Revenue Cash b. Notes Receivable Cash Notes Receivable c. Cash d. Notes Receivable Interest Revenue Cash 3,000 27,000 30,000 30,000 29,500 29,500 30,000 500 29,500 18. Mesa Tables Co. uses a four-column bank reconciliation. The bank statement reports May payments of $1,315, including service charges of $20. At the beginning of May, there were $90 of checks outstanding. At the end of May, there were $120 of checks outstanding. Before recording the bank service charges, Mesa Tables must have recorded May payments of a. $1,325. b. $1,265. c. $1,305. d. $1,365. 5-4 19. Marlon, Inc., reported a balance of $143 in its cash account at the end of the month. There were $120 of deposits in transit and $115 of checks outstanding. The bank statement showed a balance of $150, service charges of $6, and the collection of a note plus interest. The note had a face value of $15. How much interest did the bank collect for the company? a. $18 b. $ 3 c. $24 d. $12 PROBLEM 1. The accounting records for Ortiz, Inc. revealed the following information on April 30, 2015: Bank statement balance, April 30, 2015 Credit memo with bank statement for interest earned during April on bank account Debit memo with bank statement for April's service charge Deposits in transit on April 30 Cash on hand NSF customer check on April 30 A $175 deposit made on April 3 was recorded incorrectly by the bank as The bank collected a customer's note receivable (including 10% interest) Outstanding checks on April 30 Cash account balance, April 30, 2015 $51,000 15 27 2,000 500 1,000 125 1,100 3,900 50,000 Required: a. b. Prepare a bank reconciliation using good format. Prepare any necessary adjusting journal entries for April 30, 2015. Asignacin #5 (ACCO 201 Prof. Carlos lvarez) 5-5