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Jansen Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per the General Ledger as of April $6,600 Deposits Outstanding.
Jansen Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per the General Ledger as of April $6,600 Deposits Outstanding. $900 The April Bank Statement showed an April service fee of $75 Checks Outstanding..... $4,500 Customer's NSF check returned with the April Bank Statement. $420 Discovered an error in recording a check written to a vendor. The check was written correctly for $105 - but was recorded in the accounting system as a $150 credit to Cash. The After Reconciliation amount in the Company's Cash Balance portion of the April bank reconciliation would be O $6,135 O $6,150 $6,060 O $6,990 O none of the above Big Company is going to purchase Little Company. Big Co. will purchase the following assets of Little Co. (amounts given are book values): Cash. $200,000 Accounts Receivable. $450,000 Inventory... $ 95,000 Property and Equipment.. $450,000 Accumulated Depreciation......... ($150,000) Big Co. will assume the following liabilities of Little Co. (amounts given are book values): Accounts Payable. $50,000 Notes Payable. $400,000 All of Little Co.'s book values are equal to fair value except for Property and Equipment. The fair value of Little Co's Property and Equipment is $400,000 Big Co. will pay $1,200,000 cash to purchase Little Company. As a result of this transaction, Big Co. will record in its Goodwill account a debit of 405.000 0 505,000 O 955.000 O 855,000 Onone of the above
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