QUESTION 1

Brads Market's accountant is preparing its May bank reconciliation and has collected the following data:

	Per Books	Per Bank
May 1 balance	$11,600	$10,000
May deposits	24,600	21,200
May checks	27,800	29,000
Note collected (includes 10% interest)	--	4,400
May service charge	--	20
May 31 balance	8,400	6,580

Additionally, deposits in transit and outstanding checks from April's reconciliation were $4,400 and $2,800, respectively. The correct balance for cash at May 31 should be

		$10,960
		$12,780
		$11,180
		$13,980

QUESTION 2

Although IFRS contain the same basic guidelines for accounting for cash and receivables as U.S. GAAP, some differences exist. Which of the following accounting treatments differs under IFRS versus GAAP?

		the accounting for sales discounts
		the classification of some receivables as "available for sale"
		the accounting for pledging and assignment of receivables
		the application of the allowance method of accounting for uncollectible accounts

QUESTION 3

Compensating balance agreements that legally restrict cash should

		only be described in the footnotes to the financial statements
		be separately reported in the current assets portion of the balance sheet if they are against short-term borrowings
		be separately classified as noncurrent assets on the balance sheet if they are against short-term borrowings
		not be shown on the balance sheet

QUESTION 4

On October 1, Robins's Online Sales sold goods for $50,000 and accepted a six-month noninterest-bearing note. Current interest rates were 10%. The December 31 adjusting entry should be

		Interest Receivable 2,500 Interest Revenue 2,500
		Discount on Notes Receivable 1,250 Interest Revenue 1,250
		Discount on Notes Receivable 2,500 Interest Receivable 2,500
		Interest Revenue 1,250 Discount on Notes Receivable 1,250

QUESTION 5

Cash planning is important because a company wants to

		ensure that it has adequate cash available to meet maturing obligations
		ensure the safeguarding of its available cash
		forecast all available cash surpluses
		prepare a cash budget so it can invest all cash