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Exercise 7-02 Presented below are independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $795,500;

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Exercise 7-02 Presented below are independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $795,500; certificate of deposit $1,204,000; cash advance to subsidiary of $842,800; utility deposit paid to gas company $156. Cash balance 2. Checking account balance $516,000; an overdraft in special checking account at same bank as normal checking account of $14,620; cash held in a bond sinking fund $172,000; petty cash fund $258; coins and currency on hand $1,161. Cash balance 3. Checking account balance $507,400; postdated check from customer $9,460; cash restricted due to maintaining compensating balance requirement of $86,000; certified check from customer $8,428; postage stamps on hand $532. Cash balances 4. Checking account balance at bank $31,820; money market balance at mutual fund (has checking privileges) $41,280; NSF check received from customer $688. Cash balances 5. Checking account balance $602,000; cash restricted for future plant expansion $430,000; short-term Treasury bills $154,800 (which mature in 6 months); cash advance received from customer $774 (not included in checking account balance); cash advance of $6,020 to company executive, payable on demand; refundable deposit of $22,360 paid to federal government to guarantee performance on construction contract. Cash balance Exercise 7-06 Presented below is information from Sandhill Computers Incorporated. July 1 10 Sold $20,400 of computers to Robertson Company with terms 3/15, n/60. Sandhill uses the gross method to record cash discounts. Sandhill estimates allowances of $1,326 will be honored on these sales. Sandhill received payment from Robertson for the full amount owed from the July transactions. Sold $204,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. The Clark Store paid Sandhill for its purchase of July 17. 17 30 Prepare the necessary journal entries for Sandhill Computers. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit (To record sales revenue.) (To record allowance for sales returns.) Exercise 7-08 (Part Level Submission) At the end of 2020, Kingbird Company has accounts receivable of $960,000 and an allowance for doubtful accounts of $48,000. On January 16, 2021, Kingbird Company determined that its receivable from Ramirez Company of $7,200 will not be collected, and management authorized its write-off. (a) Prepare the journal entry for Kingbird Company to write off the Ramirez receivable. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 16, 2021 Attempts: 0 of 10 used SAVE FOR LATER SUBMIT ANSWER Exercise 7-18 Metlock Corporation factors $251,700 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Metlock to record the sale of receivables, assuming the recourse obligation has a fair value of $5,010. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 15, 2020 Seed Irron Trn

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